topic Re: Citi account closure/won't reissue card in Credit Cards

Citi account closure/won't reissue card

micvite — Tue, 13 Jun 2023 02:50:45 GMT

my citi dc card is expiring 7/23, just got notice they won't reissue card stating either inactivity (not the case) or high balances on revolving credit (my util is 85% rn and has been for a few months). notice goes on to say my acc will be closed once card expires, do I have any recourse on this? I'd like to keep the card open as I'm finally in a position to pay pretty much everything off over the next few months. I don't have any lates, just high balances and my score is 658 (ex)

Re: Citi account closure/won't reissue card

CreditCuriosity — Tue, 13 Jun 2023 03:41:04 GMT

Likely not.. Is it just Citi that has the balance or other cards at high utilization as well? Card is near maxed at 85% as 90% is considered max so they are reducing their risk. Its unfortunate, but if carrying for quite a while and smaller payments they got cold feet. If you pay that off your score certainly should rebound and can go after another 2% card as many out there.

Re: Citi account closure/won't reissue card

micvite — Tue, 13 Jun 2023 03:45:23 GMT

@CreditCuriosity wrote:
Likely not.. Is it just Citi that has the balance or other cards at high utilization as well? Card is near maxed at 85% as 90% is considered max so they are reducing their risk. Its unfortunate, but if carrying for quite a while and smaller payments they got cold feet. If you pay that off your score certainly should rebound and can go after another 2% card as many out there.

as a whole im at 85%, citi has been at 100+ after statement closing due to interest accrual. same with cap 1. i do have other 2% cards so not end of the world but it's one of my if not oldest card at this point so would have liked to keep it since this will destroy my credit age lol... I'm wondering if I can possibly recon it and have them hold off on closing for a month or two to get my util back down to like 50% and pay off the citi entirely next month to show that I'm fine and theres no risk lol... funny enough i never thought citi would be the one to have cold feet, it's always been discover or amex for me.

Re: Citi account closure/won't reissue card

GZG — Tue, 13 Jun 2023 04:49:10 GMT

@micvite wrote:
@CreditCuriosity wrote:
Likely not.. Is it just Citi that has the balance or other cards at high utilization as well? Card is near maxed at 85% as 90% is considered max so they are reducing their risk. Its unfortunate, but if carrying for quite a while and smaller payments they got cold feet. If you pay that off your score certainly should rebound and can go after another 2% card as many out there.
as a whole im at 85%, citi has been at 100+ after statement closing due to interest accrual. same with cap 1. i do have other 2% cards so not end of the world but it's one of my if not oldest card at this point so would have liked to keep it since this will destroy my credit age lol... I'm wondering if I can possibly recon it and have them hold off on closing for a month or two to get my util back down to like 50% and pay off the citi entirely next month to show that I'm fine and theres no risk lol... funny enough i never thought citi would be the one to have cold feet, it's always been discover or amex for me.

you can certainly pay it down as much as you can before asking them to reconsider, but I agree that they're unlikely to reconsider

when the card closes, your age of accounts for FICO won't change, it counts closed accounts too.

Re: Citi account closure/won't reissue card

micvite — Tue, 13 Jun 2023 04:56:28 GMT

@GZG wrote:
@micvite wrote:
@CreditCuriosity wrote:
Likely not.. Is it just Citi that has the balance or other cards at high utilization as well? Card is near maxed at 85% as 90% is considered max so they are reducing their risk. Its unfortunate, but if carrying for quite a while and smaller payments they got cold feet. If you pay that off your score certainly should rebound and can go after another 2% card as many out there.
as a whole im at 85%, citi has been at 100+ after statement closing due to interest accrual. same with cap 1. i do have other 2% cards so not end of the world but it's one of my if not oldest card at this point so would have liked to keep it since this will destroy my credit age lol... I'm wondering if I can possibly recon it and have them hold off on closing for a month or two to get my util back down to like 50% and pay off the citi entirely next month to show that I'm fine and theres no risk lol... funny enough i never thought citi would be the one to have cold feet, it's always been discover or amex for me.
you can certainly pay it down as much as you can before asking them to reconsider, but I agree that they're unlikely to reconsider

when the card closes, your age of accounts for FICO won't change, it counts closed accounts too.

Yeah, I just meant in the long run, also from my experience at least experian doesnt count my age of credit for closed accs, when looking at both oldest acc and aaoa it just counts what's active, so not sure if I'm just looking in the wrong place or something (i pay for experian monthly report). I'm just worried I'll have paid off an acc that's closing anyway and isntead of reducing my util it stays exactly the same when I could have benefited from paying say half of my CO balance instead.

Re: Citi account closure/won't reissue card

DEITY_of_Credit — Thu, 20 Jul 2023 06:27:23 GMT

Re: Citi account closure/won't reissue card

Anonymous — Tue, 13 Jun 2023 12:36:33 GMT

@micvite wrote:
Yeah, I just meant in the long run, also from my experience at least experian doesnt count my age of credit for closed accs, when looking at both oldest acc and aaoa it just counts what's active, so not sure if I'm just looking in the wrong place or something

FICO scores do count closed accounts, some others may not, so make sure that you are looking at an Experian FICO score

Re: Citi account closure/won't reissue card

K-in-Boston — Tue, 13 Jun 2023 12:38:05 GMT

@Anonymous wrote:
@micvite wrote:
Yeah, I just meant in the long run, also from my experience at least experian doesnt count my age of credit for closed accs, when looking at both oldest acc and aaoa it just counts what's active, so not sure if I'm just looking in the wrong place or something
FICO scores do count closed accounts, Vantage don't, so make sure that you are looking at an Experian FICO score

The confusion comes from the front-end of most credit monitoring platforms, including Experian which OP is using. Even though FICO scores are calculated with closed accounts the dashboards will often ignore them for age and for credit line calculation on utilization when a balance is present on a closed account.

OP, unfortunately with 2 cards continuing to report 100+% utilization and an aggregate utilization of 85%, that appears to your creditors as a likely default about to happen. If you are able to significantly reduce the balances on your cards immediately it's possible you may be able to get them to reverse the decision, but otherwise it's not going to happen. As mentioned upthread, balance chasing from other lenders is also probable but the important thing is to pay them way down (or off) to let your scores recover.

Re: Citi account closure/won't reissue card

SouthJamaica — Tue, 13 Jun 2023 16:20:26 GMT

@micvite wrote:
my citi dc card is expiring 7/23, just got notice they won't reissue card stating either inactivity (not the case) or high balances on revolving credit (my util is 85% rn and has been for a few months). notice goes on to say my acc will be closed once card expires, do I have any recourse on this? I'd like to keep the card open as I'm finally in a position to pay pretty much everything off over the next few months. I don't have any lates, just high balances and my score is 658 (ex)

In my opinion you should definitely call them and explain that you'll be paying pretty much everything off over the next few months.

Re: Citi account closure/won't reissue card

CreditCuriosity — Tue, 13 Jun 2023 16:27:31 GMT

@SouthJamaica wrote:
@micvite wrote:
my citi dc card is expiring 7/23, just got notice they won't reissue card stating either inactivity (not the case) or high balances on revolving credit (my util is 85% rn and has been for a few months). notice goes on to say my acc will be closed once card expires, do I have any recourse on this? I'd like to keep the card open as I'm finally in a position to pay pretty much everything off over the next few months. I don't have any lates, just high balances and my score is 658 (ex)
In my opinion you should definitely call them and explain that you'll be paying pretty much everything off over the next few months.

Agreed doesn't hurt although he said just paying citi down not near maxed out Cap 1 VX @ 30k etc that he mentioned unless I misunderstood what he stated. With other cards maxed won't do much good unless paying them all down to a reasonable level

Re: Citi account closure/won't reissue card

micvite — Tue, 13 Jun 2023 16:36:34 GMT

@CreditCuriosity wrote:
@SouthJamaica wrote:
@micvite wrote:
my citi dc card is expiring 7/23, just got notice they won't reissue card stating either inactivity (not the case) or high balances on revolving credit (my util is 85% rn and has been for a few months). notice goes on to say my acc will be closed once card expires, do I have any recourse on this? I'd like to keep the card open as I'm finally in a position to pay pretty much everything off over the next few months. I don't have any lates, just high balances and my score is 658 (ex)
In my opinion you should definitely call them and explain that you'll be paying pretty much everything off over the next few months.
Agreed doesn't hurt although he said just paying citi down not near maxed out Cap 1 VX @ 30k etc that he mentioned unless I misunderstood what he stated. With other cards maxed won't do much good unless paying them all down to a reasonable level

I should update my sig lol vx is at 50k/50k rn, I will have about 20-25k to play with, so I can either pay off citi and say discover which is now wt 11k, or about half the vx bringing my util to around 50% for the next statement cycle then I'll have another 15-20k I can pay off the month after that and so on. I'm only concerned that I'll pay off citi and they'll close it anyway, then it won't count towards my util and I'm wasting another month where one of the other creditors could get cold feet. I guess ill call and see if I can get a "hey ill pay in full if you leave my account alone" letter if not I'll let them close shop and reapply in 6 months. Can anyone advise if I have to cash out my points before they close or can I still do it after (have 200k ty points, sadly no xfer partners because I don't have a proper typ earning card)