topic Re: Why do people care so much when issuer closes or declines an account? in Credit Cards

Why do people care so much when issuer closes or declines an account?

Open123 — Fri, 08 Mar 2013 02:39:21 GMT

Unlike public utilities where there's a monopoly, and cable/telecom where there's an oligopoly, with CCs and banks there's so much competition where a consumer has almost unlimited choice and options. From my perspective, if any CC or bank doesn't want to do business with me, then I don't want to do business with them, and go elsewhere.

Curious why some take it personally when a bank or issuer closes an account or declines an application?

Re: Why do people care so much when issuer closes or declines an account?

CreditScholar — Fri, 08 Mar 2013 02:57:48 GMT

There are probably a few different reasons for this, but I think the thing you should keep in mind is this.

Based on our previous conversations, I know you to have a very logical perspective on issues related to money (including credit). As someone with an objective viewpoint, you see it as a tool to achieve other goals and view it through the lens of common sense. Many others get very emotional when it comes to money (and therefore credit), and aren't able to detatch themselves as easily. In many ways it's similar to people who are extremely self-conscious: they largely base their own feelings on how others see (or in this case approve/CLI) them. Instead of beig self-conscious with people, this is the credit version.

In other cases some people put certain lenders on a pedastool, even if it is illogical. If they somehow aren't able to reach that, they get upset because they "want it so badly". Sometimes there is a sense of self-entitltement, and they get offended when they aren't approved for something they feel they deserve. And of course there are some who are simply immature in general, and this translates into how they react to everyting (including denials and AAs).

Re: Why do people care so much when issuer closes or declines an account?

Leadberry — Fri, 08 Mar 2013 03:20:17 GMT

@Open123 wrote:
Unlike public utilities where there's a monopoly, and cable/telecom where there's an oligopoly, with CCs and banks there's so much competition where a consumer has almost unlimited choice and options. From my perspective, if any CC or bank doesn't want to do business with me, then I don't want to do business with them, and go elsewhere.

Curious why some take it personally when a bank or issuer closes an account or declines an application?

1. There is an opportunity cost involved when you commit to a lender.

2. Choosing lenders can be a very personal decision for some, involving a good amount of time and research.

3. One may become comfortable with how a certain lender operates. Some don't take too well to being forced to try new things.

In my particular case, I've spent a lot of time over the years getting to know my primary financial institution. I know how to interact with them and I'm comfortable doing so. I also know what to expect when I need something from them. While I understand this is purely a business relationship and they are not friends or anything of the sort, the way they have treated me and the decisions they have made over the years have left an impression on me. If they were to suddenly kick me to the curb, I would be dumbfounded.

Re: Why do people care so much when issuer closes or declines an account?

navigatethis12 — Fri, 08 Mar 2013 03:20:21 GMT

@CreditScholar wrote:

In other cases some people put certain lenders on a pedastool, even if it is illogical. If they somehow aren't able to reach that, they get upset because they "want it so badly". Sometimes there is a sense of self-entitltement, and they get offended when they aren't approved for something they feel they deserve. And of course there are some who are simply immature in general, and this translates into how they react to everyting (including denials and AAs).

I can't agree with this more and think it's pretty obvious which lender people worship.

I personally wouldn't be that upset if an account was closed since I have many, many more to use without it. I also never have balances so utilisation is not important. I would miss the Fidelity card because it gives 2% one everything and I don't have another card that can make that up. PNC is second with 1.50% on everything so I would have something almost as good. Some people may only have two or three cards or carry balances and need that limit to keep utilisation down.

Some people here don't have very good credit and can not just apply and get approved for any card that they want. I reckon I wouldn't have that problem, but other people would, so a closed account may not mean they can open another one.

The only real reason I would get upset is if I had a large rewards balance when the account was closed and I was not able to redeem them. If I was abusing it, I could understand, but otherwise, no. I do understand that we are all just numbers to lenders and they only want us as long as we aren't costing them a lot of money or increasing their risk. That is why I have cards from many different issuers with high enough limits that I can use any card for anything at any time.

Re: Why do people care so much when issuer closes or declines an account?

youngandcreditwrthy — Fri, 08 Mar 2013 03:22:15 GMT

Well, if you take a hard pull for something that you applied for...clearly, you wanted it and dont want to waste a hard inq.

Certain creditors, such as Amex...indicate financial stability... And have decent rewards/terms.
I think that each card has it's use, and no one card is like any other...
Kind of like how every person on the planet is different with different dna.... Lol

Re: Why do people care so much when issuer closes or declines an account?

Anonymous — Fri, 08 Mar 2013 03:40:01 GMT

@youngandcreditwrthy wrote:
Well, if you take a hard pull for something that you applied for...clearly, you wanted it and dont want to waste a hard inq.

Certain creditors, such as Amex...indicate financial stability... And have decent rewards/terms.

I think that was referred to earlier in the thread as lender worship. Saying that is just buying into Amex marketing. Look at the people on here, either new with credit or coming from BK etc, who get an Amex charge card and start on the 3xCLI path.

Now Amex is probably better than many at cutting their risks, through FRs etc, but it says nothing about financial stability!

Re: Why do people care so much when issuer closes or declines an account?

youngandcreditwrthy — Fri, 08 Mar 2013 04:03:43 GMT

Lol I must disagree.
A high FICO gets you an Amex.
Someone who is financially responsible can get an Amex.
A 700 FICO is more likely to get you an Amex.
Try getting an Amex with a 500 FICO, I dare you lmao.

;-)

Re: Why do people care so much when issuer closes or declines an account?

Anonymous — Fri, 08 Mar 2013 04:29:59 GMT

There are too many reasons to even hazard a good guess.

Some people feel the rejection is personal.

I'd be annoyed if Amex closed my cards but would get over it. It would definitely screw up utilization percentage but that wouldn't really be an issue had I practiced better financial management.

Re: Why do people care so much when issuer closes or declines an account?

Anonymous — Fri, 08 Mar 2013 04:40:37 GMT

I think many of us here work really hard to have our credit at a place where we can get the cards we desire for whatever reason. Then for something to happen that makes us lose it, it feels like a slap in the face.....like a failure. It's like with anything else in life we want whether it be a job you were after or a marriage.....when you lose something that's important to you, it bothers you.....it's human nature.

Re: Why do people care so much when issuer closes or declines an account?

Anonymous — Fri, 08 Mar 2013 04:44:50 GMT

@youngandcreditwrthy wrote:
Lol I must disagree.
A high FICO gets you an Amex.
Someone who is financially responsible can get an Amex.
A 700 FICO is more likely to get you an Amex.
Try getting an Amex with a 500 FICO, I dare you lmao.

;-)

But you can replace "Amex" with many other brands and it is just as true. And, in some cases, much higher scores are needed than with Amex. Really, reading here, Amex charge cards are one of the easier ones.

Re: Why do people care so much when issuer closes or declines an account?

toppers555 — Fri, 08 Mar 2013 04:47:11 GMT

This is one of those questions that depending on your prospective or situation the answer can vary. Me personally I see credit in general as a wealth building tool. I do not take anything personally to be honest. Perfect example would be when Barclay closed my NFL card for excessive inquiries. My response more or less was meh, as it really did not effect my goals, or overall credit health. Another example would be hard inquiries. I really for most part could careless about them. In reality it more or less really only about 10% of overall fico score, and I am not going focus my attention on something so small. Prehaps when I am at point of trying to get into the 800 club that may change , or when I am trying to buy a home, But infact even with home situration I have been pre apporved with excessive inquiries , but then again lenders may over look thise easier for me then other as my overal utilization usually is less then 5% , and never is more then 10% .

Re: Why do people care so much when issuer closes or declines an account?

ilovelisa — Fri, 08 Mar 2013 04:48:51 GMT

@toppers555 wrote:
This is one of those questions that depending on your prospective or situation the answer can vary. Me personally I see credit in general as a wealth building tool. I do not take anything personally to be honest. Perfect example would be when Barclay closed my NFL card for excessive inquiries. My response more or less was meh, as it really did not effect my goals, or overall credit health. Another example would be hard inquiries. I really for most part could careless about them. In reality it more or less really only about 10% of overall fico score, and I am not going focus my attention on something so small. Prehaps when I am at point of trying to get into the 800 club that may change , or when I am trying to buy a home, But infact even with home situration I have been pre apporved with excessive inquiries , but then again lenders may over look thise easier for me then other as my overal utilization usually is less then 5% , and never is more then 10% .

How many inquiries did you have when Barclays closed your account?

Re: Why do people care so much when issuer closes or declines an account?

toppers555 — Fri, 08 Mar 2013 05:07:51 GMT

@ilovelisa wrote:
@toppers555 wrote:
This is one of those questions that depending on your prospective or situation the answer can vary. Me personally I see credit in general as a wealth building tool. I do not take anything personally to be honest. Perfect example would be when Barclay closed my NFL card for excessive inquiries. My response more or less was meh, as it really did not effect my goals, or overall credit health. Another example would be hard inquiries. I really for most part could careless about them. In reality it more or less really only about 10% of overall fico score, and I am not going focus my attention on something so small. Prehaps when I am at point of trying to get into the 800 club that may change , or when I am trying to buy a home, But infact even with home situration I have been pre apporved with excessive inquiries , but then again lenders may over look thise easier for me then other as my overal utilization usually is less then 5% , and never is more then 10% .
How many inquiries did you have when Barclays closed your account?

I believe it was 15 , but I was playing with credit limit increase button.

Re: Why do people care so much when issuer closes or declines an account?

ilovelisa — Fri, 08 Mar 2013 05:13:44 GMT

Well then I am definitely getting shut down by them. 46 if not more on TU. Should I let them close it, or be proactive and call and ask them to close it?

Re: Why do people care so much when issuer closes or declines an account?

Shogun — Fri, 08 Mar 2013 05:19:44 GMT

I don't have an AMEX. I've never had an AMEX.

Re: Why do people care so much when issuer closes or declines an account?

webhopper — Fri, 08 Mar 2013 05:27:03 GMT

In my case it was inconvenient when ge closed my consumer lowes account... it was embarrassing to find out at the store with a deep freeze on a cart at the customer service desk. Its all good; I paid cash and decided to never get another GE backed lowes account. Now I have Amex lowes which gives me 7% rewards.

Re: Why do people care so much when issuer closes or declines an account?

ilovelisa — Fri, 08 Mar 2013 05:28:32 GMT

@webhopper wrote:
In my case it was inconvenient when ge closed my consumer lowes account... it was embarrassing to find out at the store with a deep freeze on a cart at the customer service desk. Its all good; I paid cash and decided to never get another GE backed lowes account. Now I have Amex lowes which gives me 7% rewards.

Did they tell you why they closed it?

Re: Why do people care so much when issuer closes or declines an account?

Swapmeet — Fri, 08 Mar 2013 05:31:53 GMT

Credit is a symbol of status, hence emotional. It is not an individual's worship of amex, or chase, or discover -- it is society's. If society didn't gawk at the csp, the bcp, or the it, then it wouldn't matter what kind of pedestal an individual raised these ccc up to. When someone's social status gets downgraded, there will be an adverse emotional response. To be quite humbly honest, when I got an Amex I felt like I had "arrived". And now that I have arrived in primeville, I don't really care if amex, or any other ccc closes any of my accounts -- for I have already arrived and I am here to stay. No credit card company can take that away from me; they can only take away my card -- as was said earlier, there are just too many prime cards for me to care much about one in particular.

Re: Why do people care so much when issuer closes or declines an account?

toppers555 — Fri, 08 Mar 2013 05:42:25 GMT

@ilovelisa wrote:
Well then I am definitely getting shut down by them. 46 if not more on TU. Should I let them close it, or be proactive and call and ask them to close it?

You may be okay as long as you don't ask for a credit limit increase. I was aware of them closing accounts before when customer with alot of inquries ask for credit limit increase. It was second time I putin the request in a 2 month period. Also i barely used the card because of 500 CL , which may have been another factor in the closing. I think it had like a $0-$20 balance for last 2 months..

Re: Why do people care so much when issuer closes or declines an account?

tcbofade — Fri, 08 Mar 2013 05:43:15 GMT

Why do people get upset?

JMO, but I personally believe that I'm on a journey...and when/if a given creditor takes AA, it would feel like a step backwards, i.e. a slap in the face.

Frankly, from the threads I've read here, I find it difficult to believe that NO CC company has taken AA against me...I'm never late or over the limit, but frequently have multiple cards reporting maxed out...

I'm in the garden for 2013 and hope to have NOTHING maxed out by the end of the year.