topic Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!) in Credit Cards

IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

pacem_et_libertatum — Mon, 06 Jul 2020 00:44:37 GMT

Hello Friends ..

I received an email earlier today saying that my IKEA Projekt Card was closed due to the "number of inquiries" on my (EX) report.

I thought I would share this being that my card was just opened on May 23rd.

Since this card was opened, there were 2 more inquiries added for (non-Comenity) cards I applied for (and was declined) on 5/31 and 7/2.

So, it seems that Comenity SP my file and because they saw that I had 2 more inquiries since they gave me my Projekt Card, they decided to close my account.

Non-use and a zero balance report for one month in June probably also factored in, I imagine. (I was waiting for my local store to re-open to check it out before making purchases).

I posted not too long ago about my Comenity Wayfair Card being closed, but it hadn't been used in about a year and 1/2 so I get it - that makes sense to me.

I also understand banks reducing their exposure due to the COVID situation, but to issue a card with 6K CL and then just pull it a month later just because of 2 inquiries that resulted no new accounts - this does NOT make sense.

Additionally, my UTI is down (16%) and score up (to 702) since they pulled my credit the first time. So again, I don't get it.

Also, intersting to note that they used my EQ for score (on which I have only 3 INQ - 1 recent and 2 about to drop off) and used EX (on which I have 8 INQ, 5 recent - one of which was their INQ -and 3 about to drop off) to close my account.

Anyway, thought you guys would be interested in the DP.

So summing it up, if you have a new Comenity card that's not been used I'd definitely see if you can put a small purchase on it, but also be aware that they are watching your INQ and may close your account for INQ reported since your card was issued!

Btw, I have 3 other Comenity cards that I usually put at least a couple purchases on per year and since my Wayfair Card closed I made sure they had a purchase showing in the past 6 months which they did...... But, this last closure made me nervous so I immediately went and made a purchase on these cards just to be on the safe side.

Still no guarantees, I realize.

For those interested in what small purchases can be made...

J Crew - $10 canvas tote - they have a totally cute leopard one. Plus Free Shipping.

West Elm - $20 Dash Mini Waffle Maker (+ $8 or so shipping, found reviews on BB&B)

Pottery Barn $18.80 Pretty LED light string (total included shipping).

I wouldn't ever recommend just getting something 'to get something' so I read reviews where I could and made sure I really wanted these items. I also am a big fan of returning items if I'm not reasonably satisfied with them.

Anyway, I hope this is of help!

PEL / Raven

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

Physh1 — Mon, 06 Jul 2020 03:17:06 GMT

So summing it up, if you have a new Comenity card that's not been used I'd definitely see if you can put a small purchase on it, but also be aware that they are watching your INQ and may close your account for INQ reported since your card was issued!

The inquiries themselves really aren't an issue. It's the credit hunting behavior that may have spooked them...

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

CreditInspired — Mon, 06 Jul 2020 03:54:54 GMT

Sorry OP for the closure but I do want to address something you said.

"...but to issue a card with 6K CL and then just pull it a month later just because of 2 inquiries that resulted no new accounts - this does NOT make sense."

It really does make sense. The CRs are showing 2 extra inqs with no associated accts which screams 2 declines. Unfortunately, declines begat declines. It's a good sign to stop applying. And as Physh1 said, it's more than likely the credit seeking behavior that caused the AA.

Just treat this as a lesson-learned and garden for 6-12 months.

GL2U

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

pacem_et_libertatum — Mon, 06 Jul 2020 03:57:24 GMT

Hi, @Physh1

Yes, of course... I'm not sure what else INQ would indicate if not that one is seeking credit(?).

It is curious that that should cause alarm tho' considering I already have plenty of available credit that hasn't been used (without paying off).

If I were going to over extend myself I've had plenty of time and means to do so.

I'm just looking to diversify my file a bit more and altho I still don't see my actions alarming, I get that creditors have to do what feels right to them to minimize their risk.

Raven

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

pacem_et_libertatum — Mon, 06 Jul 2020 04:17:21 GMT

"It really does make sense. The CRs are showing 2 extra inqs with no associated accts which screams 2 declines."

Good point, @CreditInspired..

Altho there would actually be only 1 rejection that could be inferred because the second inquiry happened only 3 days prior to when the letter from Comenity was dated ~ in other words, not enough time for a new account to show up on reports (or not).

Still, I guess I can see how even one rejection could be seen as a potential red flag.

Thanks for your thoughts!

Raven

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

RootDet — Mon, 06 Jul 2020 04:56:53 GMT

I just think it is a bad time for credit-seeking behavior on items that are not secured (auto, house, boat, etc). I want to apply for a new credit union but the thing just feels off to have a new account report.

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

Anonymous — Tue, 07 Jul 2020 18:14:58 GMT

@CreditInspired wrote:
Sorry OP for the closure but I do want to address something you said.

"...but to issue a card with 6K CL and then just pull it a month later just because of 2 inquiries that resulted no new accounts - this does NOT make sense."

It really does make sense. The CRs are showing 2 extra inqs with no associated accts which screams 2 declines. Unfortunately, declines begat declines. It's a good sign to stop applying. And as Physh1 said, it's more than likely the credit seeking behavior that caused the AA.

Just treat this as a lesson-learned and garden for 6-12 months.

GL2U

This is an intersting DP. I knew that HP's without resulting in opening an account could be seen as credit seeking for ensuing apps. However, I never considerd it for the prior ones. Though it does make sense. because something could be causing said denials that should be looked into.

I've had denials after approvals and it's not ever impacted those prior apps, so i do think it's worthwile to find out if anything negative is in one's profile.

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

AverageJoesCredit — Tue, 07 Jul 2020 18:54:04 GMT

@Physh1 wrote:
So summing it up, if you have a new Comenity card that's not been used I'd definitely see if you can put a small purchase on it, but also be aware that they are watching your INQ and may close your account for INQ reported since your card was issued!
The inquiries themselves really aren't an issue. It's the credit hunting behavior that may have spooked them...

Lol, inquiries are credit seeking. Comenity is known to do this pre Covid so im not too suprised. Sometimes they come off holier than thou when in reality alot of their base customers are in line with those of Sync im . I closed all mine and never look back

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

Anonymous — Wed, 08 Jul 2020 00:09:23 GMT

i'm sorry this happened, although i'm not completely surprised bc comenity is also known for closing accounts if you've opened more accounts after you've been approved for their card. i've read a few accounts on here of comenity cards being closed before the person even gets to activate it. and i know people personally that this has happened to. so your card still may have been closed even if those 2 inquires resulted in approvals and new accounts and not declines.. regardless this business practice is very irksome

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

Anonymous — Wed, 08 Jul 2020 00:20:48 GMT

Thanks for sharing. I was approved for a 12k limit, Ikea projekt card. I am on my husbands Amex, 25k limit w/9% utilization & I have a Kohls card w/1.2k limit 2% utilization. When I applied I had zero inquiries on Experian, that is the one they pulled & 1 inq on Equifax that will fall off in Sept of this year. I logged in and it says zero out of 12k available credit. My friend said that this bank is known for closing accounts without notice. I have not even gotten the card & when I was approved, it said that I could use the account immediately. I was waiting for an email but it never came. If they close down accounts like this I am not even going to bother, just leave it closed. I was suduced by the 12 month interest free financing lol.

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

AverageJoesCredit — Wed, 08 Jul 2020 03:27:34 GMT

@Anonymous wrote:
Thanks for sharing. I was approved for a 12k limit, Ikea projekt card. I am on my husbands Amex, 25k limit w/9% utilization & I have a Kohls card w/1.2k limit 2% utilization. When I applied I had zero inquiries on Experian, that is the one they pulled & 1 inq on Equifax that will fall off in Sept of this year. I logged in and it says zero out of 12k available credit. My friend said that this bank is known for closing accounts without notice. I have not even gotten the card & when I was approved, it said that I could use the account immediately. I was waiting for an email but it never came. If they close down accounts like this I am not even going to bother, just leave it closed. I was suduced by the 12 month interest free financing lol.

Yeah, thats just horrible to do to someone but Comenity is famous for it. Dont approve someone if you are going to close it before card arrives. I never had problems per se but i wouldnt go for any more Comeniyy cards on reputation alone.

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

missji — Sat, 25 Jul 2020 15:12:39 GMT

Don't feel too bad about it. There are posts throughout here where people are reporting this behavior from Comenity. Happened to me too. They closed my Ulta and Overstock cards but then I got preapprovals on both within a week. I reopened them and then about a month later, they closed the Ulta account. The Overstock account is still open. Then, just yesterday, I was surprised to get a preapproval for the West Elm card at checkout. I didnt even bother moving forward with it. Comentity went through a similar panic attack back in 2018. I had several of their cards, all with no balances and limits in the $1000-2000 range. Almost all closed with no explanation. And I had not been applying for credit, had no new adverse activity or anything. Something maybe changed in their models which said, get rid of that chick. Whatever - wasn't using them anyway.

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

Rogue46 — Sat, 25 Jul 2020 15:54:02 GMT

You said something that made me think in the original post about returning an item. Would that count as a purchase meaning a way to put spend on the card periodically?

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

coldfusion — Sat, 25 Jul 2020 16:34:01 GMT

@Rogue46 wrote:
You said something that made me think in the original post about returning an item. Would that count as a purchase meaning a way to put spend on the card periodically?

As in regularly buy items and then return them? That isn't something that the card issuers like but more importantly it's behavior that gets retailers seeing red and gets you put on their internal naughty list. That list has nothing to do with credit cards.

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

Rogue46 — Sat, 25 Jul 2020 17:15:53 GMT

Gotcha, Not something I would be doing it would seem to be too much of a hassle. Just curious

Re: IKEA Projekt Card CLOSED 1 Month After Opening (Important DPs!)

Anonymous — Sun, 02 Aug 2020 23:23:38 GMT

Here is my story with that card I had a $8000 CL, I moved to my new place bought $620 worth of stuff, made two miniumun paytments then got notice they cut credit limit to $650 so I paid it off haven't used it since. The chop in CL was insane worst I ever seen no clue why they didn't even send a letter in mail or resason. I don't use it enough to get on the phone