topic Re: Barclaycard Apple Rewards account CLOSED in Credit Cards

Barclaycard Apple Rewards account CLOSED

Boribori — Sat, 13 Oct 2018 07:26:39 GMT

So.. my Barclaycard account got closed. I asked them to reinstate it and they won't. Just told me to apply again. I have a pretty big balance on it currently. Question is. What happens to my credit now with that account being closed? Even though it's closed and I can't use the card anymore I've still been making monthly payments on it so that they would maybe open it back up. No luck. Should I keep paying the monthly payments? Should I stop?

Re: Barclaycard Apple Rewards account CLOSED

Jnbmom — Sat, 13 Oct 2018 07:46:52 GMT

Has something changed on your reports ? Not sure why they would just close your account?

Why would you stop paying, you do owe the balance correct?

Re: Barclaycard Apple Rewards account CLOSED

Anonymous — Sat, 13 Oct 2018 09:04:30 GMT

@Boribori wrote:
So.. my Barclaycard account got closed. I asked them to reinstate it and they won't. Just told me to apply again. I have a pretty big balance on it currently. Question is. What happens to my credit now with that account being closed? Even though it's closed and I can't use the card anymore I've still been making monthly payments on it so that they would maybe open it back up. No luck. Should I keep paying the monthly payments? Should I stop?

I'm guessing Barclays closed your account because of the "pretty big balance" and probably equally large balances on other cards. How long were you carrying a large balance with them, and were you paying more than the minimum due each month?

Unfortunately, your credit scores will drop because your credit reports will now show a "closed by grantor" account with a 0 credit limit but a large balance, so effectively your Barclaycard will show as maxxed out which incurs a FICO score penalty. While you do have an obligation to pay off the account, if you choose not to do so the account will be charged off and you will lose about 90 points on your credit scores for the derogatory.

Re: Barclaycard Apple Rewards account CLOSED

UpperNwGuy — Sat, 13 Oct 2018 09:12:23 GMT

When a bank closes a credit card like that, alarm bells should be sounding loudly in your head. Time to take a look at your entire financial picture and figure out how to improve it. Usually that involves tightening the belt and paying down all your outstanding balances. And, yes, definitely pay off the Barclay Apple card. It's money you owe.

Re: Barclaycard Apple Rewards account CLOSED

kiea — Sat, 13 Oct 2018 10:58:58 GMT

Unfortunately, now the account will show the balance without the credit limit on your reports which will make your score drop & utilization go up. Continue making your payments and try to pay more than the minimum if you can. Whatever you do don't stop making your payments. If you do the account can go to collections.

Re: Barclaycard Apple Rewards account CLOSED

Anonymous — Sat, 13 Oct 2018 12:21:12 GMT

It’s not necessarily true that the OP’s score will drop and that Barclays will show a $0 credit limit. They may very well, like other creditors have done in the past, just note that the account is closed and continue to report his original limit and current balance.

Re: Barclaycard Apple Rewards account CLOSED

Boribori — Sat, 13 Oct 2018 12:22:40 GMT

Yeah, it's probably because my other high balances on the cards. I just didn't know if my credit score was already bad from them closing it and it wouldn't matter wether or not I paid off the balance or not. But if it'll get worse if I don't pay it then I will continue to pay it

Re: Barclaycard Apple Rewards account CLOSED

UpperNwGuy — Sat, 13 Oct 2018 12:29:59 GMT

@Boribori wrote:
Yeah, it's probably because my other high balances on the cards. I just didn't know if my credit score was already bad from them closing it and it wouldn't matter wether or not I paid off the balance or not. But if it'll get worse if I don't pay it then I will continue to pay it

Pay it because it is the right thing to do, not because it will affect your credit score. Do the right thing!

Re: Barclaycard Apple Rewards account CLOSED

Anonymous — Sat, 13 Oct 2018 12:36:18 GMT

@Boribori wrote:
Yeah, it's probably because my other high balances on the cards. I just didn't know if my credit score was already bad from them closing it and it wouldn't matter wether or not I paid off the balance or not. But if it'll get worse if I don't pay it then I will continue to pay it

Have you looked at a recent credit report to see how they are reporting the account and whether it shows your original credit limit or $0?

Re: Barclaycard Apple Rewards account CLOSED

Boribori — Sat, 13 Oct 2018 13:17:39 GMT

I have not no what would be the difference? Just wondering

Re: Barclaycard Apple Rewards account CLOSED

HeavenOhio — Sat, 13 Oct 2018 13:34:36 GMT

Pay it. If you don't, you'll have lates on your report. The current situation can be fixed by paying off the balance on time.

Comments don't effect scoring, so "closed by grantor" won't hurt you that way. In a manual review, you might be asked about it.

Re: Barclaycard Apple Rewards account CLOSED

Anonymous — Sat, 13 Oct 2018 14:21:15 GMT

@Boribori wrote:
I have not no what would be the difference? Just wondering

Big difference. If it still shows your original credit limit then your score will not drop due to excessive utilization. Having a $0 credit limit and a $8000 balance (as an example), will affect your score drastically. You really should check to find out. When did they close the account?

Re: Barclaycard Apple Rewards account CLOSED

SouthJamaica — Sat, 13 Oct 2018 14:51:26 GMT

@Boribori wrote:
So.. my Barclaycard account got closed. I asked them to reinstate it and they won't. Just told me to apply again. I have a pretty big balance on it currently. Question is. What happens to my credit now with that account being closed? Even though it's closed and I can't use the card anymore I've still been making monthly payments on it so that they would maybe open it back up. No luck. Should I keep paying the monthly payments? Should I stop?

It could wreck your credit until you get it paid off, so get it paid off ASAP.

Re: Barclaycard Apple Rewards account CLOSED

CreditInspired — Sat, 13 Oct 2018 15:26:35 GMT

@Boribori wrote:
So.. my Barclaycard account got closed. I asked them to reinstate it and they won't. Just told me to apply again. I have a pretty big balance on it currently. Question is. What happens to my credit now with that account being closed? Even though it's closed and I can't use the card anymore I've still been making monthly payments on it so that they would maybe open it back up. No luck. Should I keep paying the monthly payments? Should I stop?

Am I reading this correctly? YES, still make your monthly payments. You made purchase(s) and you still owe the bank the money as agreed when you were approved for the card. If you stop making payments, the account will go to collections and all hell will break loose on your credit scores.

Since the account is closed, it will show you maxed out on the closed CC. Hopefully, you have other CCs with large CLs and low balances to help with your across the board UT.

Did Barclays say why they closed it? Did your scores drop, did you miss a payment, was a payment returned, were you only making minium payments for several months? Take all of these questions in consideration because you don't want other CCs following suit.

GL2U

Re: Barclaycard Apple Rewards account CLOSED

CreditInspired — Sat, 13 Oct 2018 15:23:57 GMT

@UpperNwGuy wrote:
@Boribori wrote:
Yeah, it's probably because my other high balances on the cards. I just didn't know if my credit score was already bad from them closing it and it wouldn't matter wether or not I paid off the balance or not. But if it'll get worse if I don't pay it then I will continue to pay it
Pay it because it is the right thing to do, not because it will affect your credit score. Do the right thing!

+100

Re: Barclaycard Apple Rewards account CLOSED

Anonymous — Sat, 13 Oct 2018 15:52:17 GMT

@CreditInspired wrote:
@UpperNwGuy wrote:
@Boribori wrote:
Yeah, it's probably because my other high balances on the cards. I just didn't know if my credit score was already bad from them closing it and it wouldn't matter wether or not I paid off the balance or not. But if it'll get worse if I don't pay it then I will continue to pay it
Pay it because it is the right thing to do, not because it will affect your credit score. Do the right thing!
+100

The problem with "right thing to do", apart from the fact that it is subjective, is that there a lot of "right things to do" that most people here (probably) don't. e.g

Give very meaningful amounts to charities helping in the 3rd world

Work only in socially responsible jobs

Minimise consumption

Minimise carbon foodprint

Be vegan on environmental grounds (+ moral if you wish!) etc

Some of these are much harder than paying down a credit card bill, but are arguably more the "right thing to do" than honoring a debt to a multinational financial institution.

Re: Barclaycard Apple Rewards account CLOSED

Anonymous — Sat, 13 Oct 2018 16:07:18 GMT

@Anonymous wrote:
@CreditInspired wrote:
@UpperNwGuy wrote:
@Boribori wrote:
Yeah, it's probably because my other high balances on the cards. I just didn't know if my credit score was already bad from them closing it and it wouldn't matter wether or not I paid off the balance or not. But if it'll get worse if I don't pay it then I will continue to pay it
Pay it because it is the right thing to do, not because it will affect your credit score. Do the right thing!
+100
The problem with "right thing to do", apart from the fact that it is subjective, is that there a lot of "right things to do" that most people here (probably) don't. e.g
Give very meaningful amounts to charities helping in the 3rd world
Work only in socially responsible jobs
Minimise consumption
Minimise carbon foodprint
Be vegan on environmental grounds (+ moral if you wish!) etc

Some of these are much harder than paying down a credit card bill, but are arguably more the "right thing to do" than honoring a debt to a multinational financial institution.

Seriously? Does the average person enter into a contractual agreement to do any of those things?

Re: Barclaycard Apple Rewards account CLOSED

Anonymous — Sat, 13 Oct 2018 16:08:54 GMT

Barclay's closed one of mine in 2013. I pay it as agreed, and they show me as current. They also report my original credit limit still.

Keep paying it. It's fun to run those balances up... trust me, I know. It's less fun to be a grownup and honor your commitment when it's difficult to do so. In the end, it is in your best interest to stay current.

Wish I could tell my 25 year old self that!! lol

Re: Barclaycard Apple Rewards account CLOSED

NRB525 — Sat, 13 Oct 2018 17:00:00 GMT

When Barclay closed your account, all that does is prevent you from adding to the debt balance.

You still have the same debt you owe them, and the terms of repayment are the same, so any promo APR are still effective... as long as you continue to pay within terms.

Take a walk over to the Rebuilders section to see the results of not paying. Not paying will quickly reduce your access to new credit, and will affect your access to credit for several years.

Depending on your overall income and debt owed, sometimes people end up in a place they cannot pay. I did not see an indication OP can not pay.

Check your credit report. To keep your credt improving, pay at least the minimum payment on time each month.

Re: Barclaycard Apple Rewards account CLOSED

Anonymous — Sat, 13 Oct 2018 17:31:47 GMT

@Anonymous wrote:

Seriously? Does the average person enter into a contractual agreement to do any of those things?

Saying "Do it because of a contractual agreement" is, to my mind, very different from the emotional appeal "It's the right thing to do". The contract lays out what happens if you don't meet the terms so you can decide to break them knowing the consequences. It's not magically right or wrong.