Valued Contributor
Posts: 1,673
Registered: ‎11-11-2012
Re: GE Closed all Accounts (waiting on a letter)
[ Edited ]

AddysDaddy2011 wrote:

I have 2 secured cards already and my score is just above 700 on all 3 reports, I am not sure what happened but when I get the letter I will update this thread and try to talk them in to reinstating one of the cards, or at least removing the acocunts all together and the inquiries if they cant do that. 


The main reason I applied for these is just to build up the score a little more to improve my interest rate on a mortgage. And no one ever posted that 4-5 apps is the limit like you stated, I just assumed if the company I was applying with had seen too many inquiries they would deny credit, not close every department store account I had opened. This just makes no sense to me. 

Well, the point is that all apps can lower the score for a while because of the inquiry.  Successful apps can overcome this because of decreased utililization due to increased CLs, obviously unsuccessful ones don't.   So applying for a whole bunch is always risky from that viewpoint, and is, let's say, strongly discouraged when you plan to apply for a mortgage soon.   (Apart from score decrease, the mortgage underwriters are going to view multiple credit applications as red flags that at least need explaining).


So I think distantarray's advice ("The best thing you can do now is to try to explain the situation as your young and stupid") is good and, despite the wording, well meant!

Obviously you first need to see why your cards were closed, but be prepared for the answer "Your behavior fits the profile of a credit risk".  I don't think you have grounds to demand that these items are removed from your file, you applied,  and, (if this is why the cards are closed), the bank took defensive action to protect themselves.  So explaining that you didn't understand, and can you please keep one etc, might be the best approach.


Good luck!