Hello All, I'm curious as to what happens to your score if a credit program is discontinued. Example Comenity Banks issues many credit cards and noticed that many on their list have been discontinued. Example Dots and just recently Vitacost. How does this affect your credit score when it is completely out of the control of the consumer?
It should not have any effect. Many credit files have closed accounts on them, if the cardholder or the issuer decides to terminate the credit relationship.
When a term loan is paid off, that also goes "closed" and begins to just show history.
If the one card that gets closed, is the only card the cardholder has, the only credit relationship that the cardholder has with any bank or company, then that would cause issues for the credit file, but usually, by the time a bank like Comenity gets around to closing or discontinuing a card, the cardholder has gotten one or several other cards from stores or banks, so it should be no issue.
Thanks for the quick response!