Kays Jeweler Credit Alert Closed Account....... FYI

[Anonymous]

Good Morning!

So I woke up and logged onto my pc only to find a credit alert that an account had been closed  SO when I checked the alert it showed my Kay Jeweler account had been closed and I was like wth!! So I called comenity to see what was going on and anyone who has a Kay Jeweler account will see an alert that the account has been closed. Comenity said my account is NOT closed and in good standing but that since they took over Kay Jeweler they have to update that with the credit agencies. So once the update happens our credit report will show that comenity is now handling Kay Jewlers account.

Now, what is this going to do to our credit scores? We are getting ready to start a new built house and I don't need my scores tanking because its showing a cloed account now! Anyway, just wanted to share this info with those that have a Kay Jeweler account. 

[Anonymous]

Why would closing an account tank your scores?

The only way that might happen is if you have a balance on that account when it goes to closed status.  Is that where you're at?

[Anonymous]

No I have a $0 balance but my lender told us not to close any accounts so I thought it might be because it would tank our scores or something. 

Thanks

[Anonymous]

My scores lowered ..I have a $0 balance on my $7.5k Kays Card. Account was closed and alert came. The change caused my credit usage % to significantly increase.

[Anonymous]

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@Anonymous wrote:
My scores lowered ..I have a $0 balance on my $7.5k Kays Card. Account was closed and alert came. The change caused my credit usage % to significantly increase.

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If you were looking to do a mortgage soon, you wouldn't want to be apping for a mortgage with more than a $5 balance on your revolving credit lines.

OP is in the mortgage process.  If you are going to get a mortgage, pay down all your credit card debt before starting the process.

[Anonymous]

As far as I can guess, neither our OP nor the other contributor have pulled their credit reports to see how they look now.  They are instead relying on the alert to make a guess as to what the report looks like.   I encourage them to actually pull their reports and then circle back with us.  Karma will let them see their EQ and TU reports for free.

Here are some possible ways an account closure could cause a scoring problem.

(1)  Comenity closes the Kay account and opens a new one, but the new account has a Date Opened of the last few days.  That will lower the card holder's AAoA and lower his Age of Youngest Account to 0 months.

(2)  All that appears is a closed account (no new account).  That could affect the score if it lowers utilization or if it cause total number of open cards to drop to 1 or 2 cards.

[Anonymous]

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@Anonymous wrote:

As far as I can guess, neither our OP nor the other contributor have pulled their credit reports to see how they look now.  They are instead relying on the alert to make a guess as to what the report looks like.   I encourage them to actually pull their reports and then circle back with us.  Karma will let them see their EQ and TU reports for free.

Here are some possible ways an account closure could cause a scoring problem.

(1)  Comenity closes the Kay account and opens a new one, but the new account has a Date Opened of the last few days.  That will lower the card holder's AAoA and lower his Age of Youngest Account to 0 months.

(2)  All that appears is a closed account (no new account).  That could affect the score if it lowers utilization or if it cause total number of open cards to drop to 1 or 2 cards.

Ok so I just checked on credit karma and Comenity had just increased my credit limit from $500 to $1,250 but credit reports have not showed that increase yet. When I checked Wallethub it shows Kays was closed on Oct 20th and I just got an alert today, I also had a $0 Bal with Kays so there has been no drop in scores as of yet just by looking on credit karma which i know there scores are not accurate anyway. We have not gotten our credit ran with updated scores since June until our house gets closer to being built but credit karma shows TU 690/EQ 677. I know our score have increased from what is in sig because util has went down along with cc being paid off since June

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[Anonymous]

My credit score dropped 30+ points because of Kay Jewelers and their bull crap. I am not happy because I had plans on applying for another line of credit and they have messed up my plans. I went from a 736 credit score to 650. They need to hurry up and fix this mess. They caused my credit utilization to go up significantly. The fact that my account is in good standing and has a $0 balance BUT appears as closed on my credit report is not fair! Come on now.

[Anonymous]

Kays has started reporting on my credit report again, I did not notice a drop in credit scores while they were transitioning.

[Kree]

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wrote:

(1)  Comenity closes the Kay account and opens a new one, but the new account has a Date Opened of the last few days.  That will lower the card holder's AAoA and lower his Age of Youngest Account to 0 months.

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This happened to me in the past with  buyouts.  Already lost 6 months off of my AAoA, and will lose another 6 months in November once the other account hits 10 years closed.