topic Re: Discover CLD, Merrick closed for no usage in Credit Cards

Discover CLD, Merrick closed for no usage

wit2bees — Sun, 08 Mar 2020 21:46:11 GMT

Without warning Discover reduced the limits on both of my cards. From $5500 to $500 (bal 0.00) and From $2500 to $1500.00 (bal 1400.00). I called and was advised to call the Portfolio Verification department on Monday. Nothing else has changed in my profile. I recently got a increase on both of NFCU cards and a new card from Penfed. Also I recevied an alert that Merrick Bank had closed my account. I hadn't used it in a while but kept it for the age, as it was a rebuilder after my BK7. That will report as closed by creditor. I also called and requested the Credit One be closed as well. Not something I was using but my AA will take a hit from all of this. Total decrease of over $10k. Takes my utilization to about 13%.

Re: Discover CLD, Merrick closed for no usage

Anonymous — Sun, 08 Mar 2020 21:59:30 GMT

Sorry for the CLD. Your AAoA will not take a hit.

Re: Discover CLD, Merrick closed for no usage

M_Smart007 — Sun, 08 Mar 2020 22:32:38 GMT

Sorry for your CLD

Re: Discover CLD, Merrick closed for no usage

Anonymous — Sun, 08 Mar 2020 22:37:51 GMT

Sorry about your CLD. It looks as though one of your DISCOVER cards is being balance chased.

Is something going on in your credit reports? Have you checked recently? It appears it's all happening at once due to a change in your reports. If you aren't aware of anything, I'd check them out.

Re: Discover CLD, Merrick closed for no usage

Anonymous — Sun, 08 Mar 2020 23:49:53 GMT

Has the balance on the 2500 limit card been that high for awhile?

Re: Discover CLD, Merrick closed for no usage

Remedios — Mon, 09 Mar 2020 00:24:16 GMT

@wit2bees sometimes it's possible to restore credit line with Discover, depending on a reason for balance chasing and CLD, by making a significant payment

The balance you had on one of your cards, is it a BT or just "regular" balance?

Have you carried it for a while while making minimum payments only, or is that just one month worth of spend?

Re: Discover CLD, Merrick closed for no usage

K-in-Boston — Mon, 09 Mar 2020 00:34:22 GMT

You stated that nothing else happened on your profile, but the new PenFed card is certainly active credit seeking and I am assuming the NFCU CLIs also resulted in a new inquiry? Your signature states 50 accounts and too many inquiries; have you opened many others besides the PenFed in the past 3/6/12 months? Have you been taking HPs for anything else in the past 3/6/12 months? Do you have other cards that have high individual utilization besides the Discover?

The Merrick Bank account was closed due to inactivity rather than anything in your profile, so I wouldn't worry about that, but obviously something has spooked Discover other than the one card with 56% utilization, resulting in balance chasing. Usually that will be caused by new negative information reporting, high utilization, aggressive credit seeking, etc.

And as for the average age of accounts, those closed accounts will continue to count until they fall off of your reports up to 10 years from now.

Re: Discover CLD, Merrick closed for no usage

wit2bees — Mon, 09 Mar 2020 00:39:44 GMT

@Anonymous wrote:
Has the balance on the 2500 limit card been that high for awhile?

No not even a month. I keep it fairly low just made some purchases. I paid it off as soon as I saw the decrease. If they want to chase it down they can do it without hitting my utilization.

Re: Discover CLD, Merrick closed for no usage

wit2bees — Mon, 09 Mar 2020 00:50:39 GMT

The NFCU were increased in December after AR with a SP. I have one other credit union card that I just did a balance transfer to so it's reporting high but I will pay it off in the next couple of months. No other new CC accounts in the last 6 month. 2 cards in the last 12 months but a few other inquiries. I have closed about 12 cards this year so my profile needs to be updated.

@K-in-Boston wrote:
You stated that nothing else happened on your profile, but the new PenFed card is certainly active credit seeking and I am assuming the NFCU CLIs also resulted in a new inquiry? Your signature states 50 accounts and too many inquiries; have you opened many others besides the PenFed in the past 3/6/12 months? Have you been taking HPs for anything else in the past 3/6/12 months? Do you have other cards that have high individual utilization besides the Discover?

The Merrick Bank account was closed due to inactivity rather than anything in your profile, so I wouldn't worry about that, but obviously something has spooked Discover other than the one card with 56% utilization, resulting in balance chasing. Usually that will be caused by new negative information reporting, high utilization, aggressive credit seeking, etc.

And as for the average age of accounts, those closed accounts will continue to count until they fall off of your reports up to 10 years from now.

Re: Discover CLD, Merrick closed for no usage

wit2bees — Mon, 09 Mar 2020 00:52:09 GMT

@Anonymous wrote:
Has the balance on the 2500 limit card been that high for awhile?

The Discover was at about 6% utilization at the begining of the year. It reported high for one period.

Re: Discover CLD, Merrick closed for no usage

Anonymous — Mon, 09 Mar 2020 00:55:23 GMT

Closing a bunch of cards in that short of a period and then having a card closed by grantor as well could be triggering algorithms to think there's a problem.

Re: Discover CLD, Merrick closed for no usage

Anonymous — Mon, 09 Mar 2020 00:56:11 GMT

@K-in-Boston wrote:
You stated that nothing else happened on your profile, but the new PenFed card is certainly active credit seeking and I am assuming the NFCU CLIs also resulted in a new inquiry? Your signature states 50 accounts and too many inquiries; have you opened many others besides the PenFed in the past 3/6/12 months? Have you been taking HPs for anything else in the past 3/6/12 months? Do you have other cards that have high individual utilization besides the Discover?

The Merrick Bank account was closed due to inactivity rather than anything in your profile, so I wouldn't worry about that, but obviously something has spooked Discover other than the one card with 56% utilization, resulting in balance chasing. Usually that will be caused by new negative information reporting, high utilization, aggressive credit seeking, etc.

And as for the average age of accounts, those closed accounts will continue to count until they fall off of your reports up to 10 years from now.

Wow, I didn't even see that in the signature. Way too many in all caps. Usually with newer posters, I don't always check signatures. The answer might be screaming in the sig.

Re: Discover CLD, Merrick closed for no usage

K-in-Boston — Mon, 09 Mar 2020 01:03:08 GMT

@wit2bees wrote:
The NFCU were increased in December after AR with a SP. I have one other credit union card that I just did a balance transfer to so it's reporting high but I will pay it off in the next couple of months. No other new CC accounts in the last 6 month. 2 cards in the last 12 months but a few other inquiries. I have closed about 12 cards this year so my profile needs to be updated.
@K-in-Boston wrote:
You stated that nothing else happened on your profile, but the new PenFed card is certainly active credit seeking and I am assuming the NFCU CLIs also resulted in a new inquiry? Your signature states 50 accounts and too many inquiries; have you opened many others besides the PenFed in the past 3/6/12 months? Have you been taking HPs for anything else in the past 3/6/12 months? Do you have other cards that have high individual utilization besides the Discover?

The Merrick Bank account was closed due to inactivity rather than anything in your profile, so I wouldn't worry about that, but obviously something has spooked Discover other than the one card with 56% utilization, resulting in balance chasing. Usually that will be caused by new negative information reporting, high utilization, aggressive credit seeking, etc.

And as for the average age of accounts, those closed accounts will continue to count until they fall off of your reports up to 10 years from now.

Most likely a combination of both the Discover and CU card reporting spikes in utilization along with the newly opened account, and possibly the many account closures just triggered the balance chasing. Did your scores also take a bit of a dive recently due to that?

Since you have paid the Discover account already, doesn't hurt to give them a call to see if they will reinstate the previous credit lines, but worst case scenario once things settle down those cards can grow again.

Re: Discover CLD, Merrick closed for no usage

wit2bees — Mon, 09 Mar 2020 01:10:24 GMT

@K-in-Boston wrote:
@wit2bees wrote:
The NFCU were increased in December after AR with a SP. I have one other credit union card that I just did a balance transfer to so it's reporting high but I will pay it off in the next couple of months. No other new CC accounts in the last 6 month. 2 cards in the last 12 months but a few other inquiries. I have closed about 12 cards this year so my profile needs to be updated.
@K-in-Boston wrote:
You stated that nothing else happened on your profile, but the new PenFed card is certainly active credit seeking and I am assuming the NFCU CLIs also resulted in a new inquiry? Your signature states 50 accounts and too many inquiries; have you opened many others besides the PenFed in the past 3/6/12 months? Have you been taking HPs for anything else in the past 3/6/12 months? Do you have other cards that have high individual utilization besides the Discover?

The Merrick Bank account was closed due to inactivity rather than anything in your profile, so I wouldn't worry about that, but obviously something has spooked Discover other than the one card with 56% utilization, resulting in balance chasing. Usually that will be caused by new negative information reporting, high utilization, aggressive credit seeking, etc.

And as for the average age of accounts, those closed accounts will continue to count until they fall off of your reports up to 10 years from now.

Most likely a combination of both the Discover and CU card reporting spikes in utilization along with the newly opened account, and possibly the many account closures just triggered the balance chasing. Did your scores also take a bit of a dive recently due to that?

Since you have paid the Discover account already, doesn't hurt to give them a call to see if they will reinstate the previous credit lines, but worst case scenario once things settle down those cards can grow again.

I agree, I just reviewed the reports and it does seem a bit "busy" lol. I will call them and see but if not I will just wait it out and hope they don't close them completely.