topic Re: Issuers leaving $500 CL when cancelling card? in Credit Cards

Issuers leaving $500 CL when cancelling card?

Open123 — Fri, 04 Jan 2013 18:20:59 GMT

Just curious, anyone know the rationale behind carriers leaving $500 on a closed card and/or consolidating credit lines?

Re: Issuers leaving $500 CL when cancelling card?

pizzadude — Fri, 04 Jan 2013 18:58:16 GMT

@Open123 wrote:
Just curious, anyone know the rationale behind carriers leaving $500 on a closed card and/or consolidating credit lines?

Are you saying that your account shows a $500CL after it has been paid in full and closed ? FICO scoring will ignore the CL if the account is closed & paid.

Re: Issuers leaving $500 CL when cancelling card?

Open123 — Sat, 05 Jan 2013 00:26:53 GMT

For instance, I cancelled a Chase airline card, but wanted to consolidate the credit line into my CSP. They easily accomodated, but the original card is closed with a CL of $500.

Same thing with Barclay's. Closed a card, and moved a CL to another one. Closed card is closed, but shows a CL of $500.

I was just curious to the rationale behind leaving $500. Just in case I forget to cancel a recurring charge?

Re: Issuers leaving $500 CL when cancelling card?

Repo-ed — Sat, 05 Jan 2013 02:10:52 GMT

Seems to me they are trying to screw you for future MR's

Re: Issuers leaving $500 CL when cancelling card?

Cdnewmanpac — Sat, 05 Jan 2013 03:08:03 GMT

bizarre. same thing happened to me with chase. tried to transfer 5k from southwest to csp then close. they would only transfer 4500, told me that it was because computer gave me a Max credit limit of 9500. but seeing your post, now I'm curious if something else is going on.

Re: Issuers leaving $500 CL when cancelling card?

Open123 — Sat, 05 Jan 2013 05:09:51 GMT

Could be to have a card on file to ensure a card isn't churned for sign up bonuses in the future?

Re: Issuers leaving $500 CL when cancelling card?

Walt_K — Sat, 05 Jan 2013 05:27:03 GMT

There was a thread a while back that said they have to process the CLD and transfer before closure and that they can only CLD to minimum allowed for the card. That is 500 for a lot of cards. I can't remember if this is what a CSR told someone or if it was what the poster surmised.