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Credit Cards Keep closing my Accounts

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New Member

Credit Cards Keep closing my Accounts

Ok so I had one bad year due to 10k+ in medical bills, I paid them all, during that year (2017) I had a car payment that somehow got 30 days past due for 12 months of 2017, I didn't find out until we pulled a credit report in early 2018 and found 12 30-day late, on there than that everything has been on time. The Bank we had the auto loan with never called, emailed, mailed anything saying we were 30 days date and all the payments were only 34 days past due.

 

From what they tell me a payment was missed which I find hard to believe because we pay our bill out on the first of every month when I am paid. House, Insurance, and Cars payments are the first to come out of our bank then credit card payments. I had 2 or 3 late 30 day with 3 different CC companies just because we did not have the money that month to pay them due to my medical bills. Well now I have had 2 CC companies cancel my credit cards with them even though I've never missed a payment with them and never had a balance over 75% utilization.

 

I don't understand why there are doing this, we are trying to buy a new house this year since my new job is 1.5 hours away. Between the Auto loan and now these close accounts It has been dropping my score and it is killing me. 97% of my payments are on time on my credit report and my CC utilization is below 60% and we are paying it down as much as we can now that our money flow is back to normal.With the account closing it has now jumped my utilization up to 78% and dropped my score, im freaking out because I feel like these companies don't value the relationship and my good standing, and also how long is this going to take to repair ridiculous.....

Message 1 of 10
9 REPLIES
Established Contributor

Re: Credit Cards Keep closing my Accounts

So if I’m reading your post correctly. It’s very jumbled and needs some spacing.

You have 12 30 day lates on installment loans and 2-3 30 day lates on credit cards.

That’s a whole lot of late payments that are very recent. With the uptick in charge off’s and the huge credit bubble.
Lenders are starting to get spooked.
All those late payments are a HUGE red flag.

You can try to contact the companies and review your records and see if any of them are inaccurate. If they are. Dispute them first with the companies and if no luck. Try the credit agencies.

If they aren’t. You can try to explain to them what happened and see if anyone will help you out with a goodwill adjustment. It’s most likely too soon though.
After the accounts have been paid off completely and 1-3 years after the account has been paid in full. You can try to send each creditor a good will letter and you may see some success.

Late payments will remain on record for 7 years from the date of first delinquency.
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Message 2 of 10
New Member

Re: Credit Cards Keep closing my Accounts

I have never missed a payment with that bank and had the CC since 2012 and it is not a charge off they just closed it. I don't have any charge offs or collections on my credit history.

 

12ea 30 day lates on a Auto Loan

3 ea late on CC not with this bank

16 Total accounts 12 with perfect payment history

 

Like I said we had a rough year last year and didn't find out until January of this year, the auto loan was 1 payment past due and took care of it immediatly. I am Furious about this as we have been diligent in setting up automatic payments for everything, and making sure that something like this does not happen in the future. We have also been paying down all our balances since I no longer have the medical bills.

 

That being said, It seems like these banks don't care about the personal realtionship or payment history you have with them. We are trying to buy a house in the next 30 to 60 days and it seems like this is going to muddy the waters on my credit a lot! It seems like if they close a 2k line of credit it would put a serious mark on my score for some time.

Message 3 of 10
Established Contributor

Re: Credit Cards Keep closing my Accounts

Lenders get access to your credit reports when you have accounts with them.

A lot of banks are more worried about the risk of chargeoff’s then how long/good of a relationship you have had with them.
Unless you keep a large amount of money in that bank. I doubt they really value anyone as a customer, especially just credit card accounts.

I don’t understand the 12ea and 3ea notation ?
If that’s 12 late payments on a auto loan and 3 late payments on credit cards.
That’s a total of 15 late payments all within a year ? ( going off what you said about about having a rough year, and not years)

That’s a lot of late payments in such a short amount of time. Lenders are going to get spooked, even those who you have prefect payment history with.
From their point of view, they could be next and it might be worse with them.

In regards to buying a house. It’s most likely going to be very difficult to secure a mortgage loan with a decent rate with that many recent late payments. You might not even qualify at all.
(I don’t know that much about mortgages but 15 recent late payments is a ton)

In regards to your FICO score taking a hit for a lender closing an account. FICO doesn’t calculate a lender closed account any differently then a consumer request.
You still will be affected by Util, number of open accounts and those sorts of things.
It will still factor into your AAoA for up to 10 years.
FICO 8 Scores as of 04/12/2018
TU - 680
EX-676
EQ- 686

Cards:
US Bank Altitude Reserve-5K
Amex Premier Rewards Gold- NPSL
Chase CSP -5K AU
US Bank FlexPerks Travel Rewards Visa - 4K
Amex Delta Gold -2K
Amex Delta -22K AU
BoA Travel Rewards 6k
Discover IT $600
Credit 1- $450
Message 4 of 10
Valued Contributor

Re: Credit Cards Keep closing my Accounts


@Cotton2730 wrote:

I have never missed a payment with that bank and had the CC since 2012 and it is not a charge off they just closed it. I don't have any charge offs or collections on my credit history.

 

12ea 30 day lates on a Auto Loan

3 ea late on CC not with this bank

16 Total accounts 12 with perfect payment history

 

Like I said we had a rough year last year and didn't find out until January of this year, the auto loan was 1 payment past due and took care of it immediatly. I am Furious about this as we have been diligent in setting up automatic payments for everything, and making sure that something like this does not happen in the future. We have also been paying down all our balances since I no longer have the medical bills.

 

That being said, It seems like these banks don't care about the personal realtionship or payment history you have with them. We are trying to buy a house in the next 30 to 60 days and it seems like this is going to muddy the waters on my credit a lot! It seems like if they close a 2k line of credit it would put a serious mark on my score for some time.


Banks don't care about "relationships" unless you have a whole lot of money and even in that case they really are not your friend - it's not their job or purpose to be a friend. Small town local banks and credit unions may loosen lending standards based on relationships, but especially when it comes to mortgages, that's federal and state regulated because of the fact that almost all mortgage loans are sold and packaged into bonds. The exception being if a local bank/CU held the mortgage in-house and today that is pretty rare.   

 

Having a card or credit line closed by grantor is no big deal if it's an account in good standing and should not ding your credit scores (other than utility if you carry balances).

 

15 x 30-day lates will certainly be a roadblock to getting a mortgage, it won't necessarily kill your chances, but you'll need to do a bunch of explaining and you will certainly pay a higher interest rate if those stay on your report. As mentioned, you can try to get all or most removed from your credit report - which I would do well before I submitted an app for a mortgage or car or even a major credit card. 

 

 

Message 5 of 10
New Member

Re: Credit Cards Keep closing my Accounts

Yes 15 Total 30 Day lates last year (2017), luckily I have a VA morgage so the score is the more important part and I have consulted with my lender, Fico 5,4,2 Need to be above 620 and I am good. My Fico 8 and Vantage 3.0 are not to bad, but the other scores that matter here took a hit because the payment history is weighted more. 

 

It would have only been 3 late payments, we were un aware that a loan payment was missed in december and we have automatic payments with them.  Those 12 lates were a big surprise to us (why I signed up for monitoring), and the bank we have the loan through really has been bad, but we went with them for the .9% interest. I would gladly pay 1.9% to have gone with a different bank looking back on it. If we had been notified (call, text, email, letter) we would have figured out how to make it right, but they never did, like I said Morgage and car payments are the first things out of our account the 1st of the month.

 

I was hoping of getting my utilization back down under 10% to combat this in the next 30 to 60 days nevermind I want my credit back to were it was in 2016 which was in the mid 700s. So we have been on a strick budget and anything extra has going to balances. Just saying it sucks when really most of my accounts still have perfect payment history and those 15 lates only lowered my ontime percentage from 100 to 97%. We also have our banking and saving accounts with this bank, so we will probably move them to a bank that values our business more.

 

I appreciate the input and hopefully it doesn't change my timeline for buying a new house, this summer, closer to work. God knows were are jumping hurtles just trying to get our current one on the market.

Message 6 of 10
New Member

Re: Credit Cards Keep closing my Accounts

Luckily we have VA morgage from my service so the fico 5,4, and 2 are important. I am working to try to find a way to get the lates removed, with letters, calls, emails, etc.

 

I disputed them just to give it a go and it actually bit me in the butt. They came back and reported all the lates as still late, somewhat expected that. Then, they reported my balance increased on the auto loan and that I was no more than 2 late payments. Instant plunge on  my score and inaccurate.

 

Ive been current since Jan 18 and my balance is 1100 dollars less than what they reported. the balance they reported was my December balance. So im guessing someone made a big mistake there, I called them and they have a team looking into it and will get back to me in 3 to 7 business days. I really have not been able to catch a break.

Message 7 of 10
Established Member

Re: Credit Cards Keep closing my Accounts


@Cotton2730 wrote:

That being said, It seems like these banks don't care about the personal realtionship or payment history you have with them. We are trying to buy a house in the next 30 to 60 days and it seems like this is going to muddy the waters on my credit a lot! It seems like if they close a 2k line of credit it would put a serious mark on my score for some time.


Well no because it's not a personal relationship. It's strictly business/financial. In fact it seems that more and more these adverse decisions are being made by computers and all they see is hard data and they saw some that they didn't like.

 

It's unfortunate that you fell on hard times and I hope you are doing better. I know how frustrating it can be when it seems to all pile on at once. Your credit will eventually rebound. It make take some time and you may have to re-evaluate some things but your health is more important. Keep your head up, do what you can and let the rest work itself out.

Message 8 of 10
Established Member

Re: Credit Cards Keep closing my Accounts

auto pay, auto pay, auto pay. 

Message 9 of 10
Senior Contributor

Re: Credit Cards Keep closing my Accounts


@93dsmrick wrote:

auto pay, auto pay, auto pay. 


Can't trust auto pay either. That's not the answer.

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Message 10 of 10