topic Re: Amazon Synchrony bank CLD in Credit Cards

Amazon Synchrony bank CLD

Anonymous — Sun, 13 Aug 2017 12:55:31 GMT

They just cut 3 cards to just over my current balance. lowes from 35k to 16k 250.00 over current limit. making 1k monthly payments paying down my remodle.
walmart 9 k to 2.5 k 150.00 below my current.
Amazon 6 k to 150.00 just payed it off last month.
Score is going to take a big hit as it will appear i have 2 maxed out cards next 6 to 12 months as i pay down balances. Grrrr !!! Dirty play as i have payed most if not all in full monthly except lowes & i pay 1k a month on it.
A lesson to dersify my lenders more

Re: Amazon Synchrony bank cut my limit!

AverageJoesCredit — Sun, 13 Aug 2017 12:46:10 GMT

Rnr, thats crazy. Any info you can provide on your profile? Any lates recently or other baddies. Hows your income in regards to your exposure with Sync? Carrying 16k on a 35k card might have spooked them but im of mind your credit is there to be used and so long as you are making ontime payments you should be good. But in these days you never know.

Re: Amazon Synchrony bank cut my limit!

Anonymous — Sun, 13 Aug 2017 12:56:39 GMT

@Anonymous

I moved your post to its own thread so it gets more visibility. Sorry to hear that this happened to you.

Re: Amazon Synchrony bank CLD

fltireguy — Sun, 13 Aug 2017 14:14:21 GMT

Ugh. Balance chasing.
What spooked 👻 them in your profile?

Re: Amazon Synchrony bank CLD

pizza1 — Sun, 13 Aug 2017 15:43:48 GMT

ouch, Sorry to hear this. They are balance chasing you for some reason. What does the rest of your reports look like? Anything new pop up? Whats your overall util reporting right now amongst all your cards?

Re: Amazon Synchrony bank CLD

Anonymous — Sun, 13 Aug 2017 17:07:44 GMT

If you are paying zero interest on those balances just keep plugging away and pay them as you always were. if you are paying interest I suggest getting one of those online loans at 15% or something which is half the retail card rate. The credit cards report zero balance is before the loan reports so you will get a credit boost, and when the loan does report it counts better in your score then carrying the same balances on revolving cards

Re: Amazon Synchrony bank CLD

fltireguy — Sun, 13 Aug 2017 17:26:25 GMT

You are better off closing those accounts right now. Because, if you do that, the cards will continue to report your current credit limit that you have right now, as you pay down the balance. You will not get balance chased down to zero anymore, and your scores will recover quicker than they are right now.

Re: Amazon Synchrony bank CLD

fltireguy — Sun, 13 Aug 2017 17:27:14 GMT

Either way, the accounts will be closed when you eventually hit a zero balance

Re: Amazon Synchrony bank CLD

Anonymous — Sun, 13 Aug 2017 17:31:44 GMT

@fltireguy wrote:
You are better off closing those accounts right now. Because, if you do that, the cards will continue to report your current credit limit that you have right now, as you pay down the balance. You will not get balance chased down to zero anymore, and your scores will recover quicker than they are right now.

I believe if you close an account with a balance, it will report the utilization at 100% until it's paid. Because you no longer have a credit limit.

If I'm wrong, then I stand to be corrected.

Re: Amazon Synchrony bank CLD

fltireguy — Sun, 13 Aug 2017 18:42:59 GMT

Donny10, speaking from experience, with Sync, if either you or they close the accounts, the CL will be locked in at the time of closure, and they will not show at 100% util. Leaving them open, will leave the OP open to never ending balance chasing until they get paid off, and then sync closes them anyway

Re: Amazon Synchrony bank CLD

fltireguy — Sun, 13 Aug 2017 18:43:42 GMT

Other lenders are probably different. I have had this personally with Sync

Re: Amazon Synchrony bank CLD

Anonymous — Sun, 13 Aug 2017 19:20:19 GMT

@fltireguy wrote:
Other lenders are probably different. I have had this personally with Sync

In your case, I guess you were lucky.

Because FICO does the calculations. It will show on your closed account what your limit was when you or the creditor closed it, but FICO knows it's not active and no longer counts the credit line. In FICO's view, no active credit line, balance will always be 100%. Even if $1 is reporting, that $1 is going to be 100%.

Anyone else ever get this unique feature with closed Sync cards? Credit line being counted and utilization decreasing as balance goes down in the eyes of FICO on that closed Sync account?

Re: Amazon Synchrony bank CLD

fltireguy — Sun, 13 Aug 2017 19:24:53 GMT

Donny10, not to be argumentative..... but...

It shows the same way on MF

It does not affect my score at all.

There's no way possible I wcould have a 751 TU if anything was showing at 100%

I figured, since Sync wasnt nice to me, I would take full advantage of the 12 month 0% that this purchase was on... just paid it off yesterday...

Re: Amazon Synchrony bank CLD

Anonymous — Sun, 13 Aug 2017 19:25:08 GMT

@fltireguy wrote:

Donny10, not to be argumentative..... but...
It shows the same way on MF
It does not affect my score at all.

Your not being argumentative at all. Im glad you are pointing this out! I had no idea.

You just educated me and I am grateful you corrected me. Thank you!

Re: Amazon Synchrony bank CLD

Anonymous — Sun, 13 Aug 2017 19:57:05 GMT

@Anonymous wrote:
@fltireguy wrote:
You are better off closing those accounts right now. Because, if you do that, the cards will continue to report your current credit limit that you have right now, as you pay down the balance. You will not get balance chased down to zero anymore, and your scores will recover quicker than they are right now.
I believe if you close an account with a balance, it will report the utilization at 100% until it's paid. Because you no longer have a credit limit.

If I'm wrong, then I stand to be corrected.

As I said in my original response. "If I'm wrong, then I stand to be corrected".

fltireguy did an outstanding job correcting me.

Now, the question is. Is Sync the only creditor that allows this?

Re: Amazon Synchrony bank CLD

Anonymous — Sun, 13 Aug 2017 20:34:11 GMT

Please note that's CREDIT KARMA.

They calculate things differently than FICO does.

I do believe that FICO considers all closed accounts as having no credit limit for FICO scoring purposes. What I don't know is how FICO treats a balance owing on a closed account, where it's not delinquent. That's an oddball case. Maybe FICO treats the balance owing as 0? Or maybe as 100% util? I don't know.

But I wouldn't trust Karma as a guide for FICO.

Re: Amazon Synchrony bank CLD

fltireguy — Sun, 13 Aug 2017 20:37:39 GMT

Canadian, on my myFICO it shows the same way as CK does. My assumption is that because they are still showing a credit limit, they calculate based on the credit limit. However, when the balance is paid in full, they will update the credit limit to 0, but not before, on a closed account.

And I agree, I trust CK about as much is I would trust an alligator guarding my puppy.

Re: Amazon Synchrony bank CLD

fltireguy — Sun, 13 Aug 2017 20:38:56 GMT

Also, the example that I showed a picture of it should update about two weeks tops. I will see if there's any change to my score, which I sincerely doubt, and follow up

Re: Amazon Synchrony bank CLD

drboxing — Sun, 13 Aug 2017 23:49:25 GMT

I had JC Penney, Lowes (no balance), and a few others, synchrony bank canceled all of my card with them, some had high balances that I paid down. So I don't like dealing with them, don't need them, if I shop at JC Pennies or Lowes there are other cards I can use.

Re: Amazon Synchrony bank CLD

Anonymous — Mon, 14 Aug 2017 02:04:03 GMT

I'd still like to hear from the OP regarding his profile and what it was that caused this AA from Synchrony. IMO there must have been a negative item introduced into the equation somewhere. Perhaps not from one of his Synchrony accounts, but somewhere. There would have been no reason otherwise for Synchrony to take AA. With a Lowe's account with a $35k limit, the expecation is that the card holder is likely going to use a significant portion of that balance for home improvements and perhaps take time to pay it off. $16k while a high balance is still only 45-46% of the limit. No where near "warning" mode. Even so, the OP was paying $1k/mo when the required payment was probably something like $300-$400. It would be a poor business move for Synchrony to nix an account that they were making good money on in interest when the OP was having no problems paying it down. The only exception here would be if a delinquency or derog was introduced elsewhere, and Synchrony took a CYA approach as a result.