topic Re: Bank of America Closed my Account in Credit Cards

Bank of America Closed my Account

yellowcake — Fri, 05 Jul 2013 14:42:40 GMT

1-2-3 card, had it for 3 months, balance of 400 on 5,000 limit. 0% apr for 12 months so I wasn't in a rush to pay it off.

When I called to find out why they closed it, they told me it was because of balances on my other accounts.

It was quite a surprise to me because my current util is at 9%.

I'm not too mad about it because the card was sock drawered anyway, I have the Penfed Platinum Rewards which offers a better return.

Just an FYI to other BoA cardholders, they're watching you!

Re: Bank of America Closed my Account

armbenderc — Fri, 05 Jul 2013 14:47:11 GMT

@yellowcake wrote:
1-2-3 card, had it for 3 months, balance of 400 on 5,000 limit. 0% apr for 12 months so I wasn't in a rush to pay it off.

When I called to find out why they closed it, they told me it was because of balances on my other accounts.

It was quite a surprise to me because my current util is at 9%.

I'm not too mad about it because the card was sock drawered anyway, I have the Penfed Platinum Rewards which offers a better return.

Just an FYI to other BoA cardholders, they're watching you!

I don't understand why they closed your acct. I know your util on BoA is 9%, but what is your TOTAL util on all cards?

Something is not adding up here, any other major changes in your credit profiles?

Re: Bank of America Closed my Account

yellowcake — Fri, 05 Jul 2013 14:53:37 GMT

Sorry for the confusion, the util on ALL my cards is 9%.

I got this BoA card during a recent app spree, so may be they got scared with all the new accounts, but that's not what the letter they sent me and the I CSR spoke to said.

Re: Bank of America Closed my Account

Open123 — Fri, 05 Jul 2013 15:01:37 GMT

After the "app'orama" days when people opened up multiple cards to arbitrage higher short term rates (money markets were offering 5%) with 0% promos and balance transfers, banks have been very "wary" of multiple account openings within a very short time frame.

In those days, people app'ed 10 times in a single day to avoid detection. Perhaps, your account opening pattern simply fit one of their risk "triggers." Whatever the "real" reason, they're not likely to share it with you, since if people knew their triggering criteria, it'd be easy to "game" their system.

Re: Bank of America Closed my Account

armbenderc — Fri, 05 Jul 2013 15:03:21 GMT

@yellowcake wrote:
Sorry for the confusion, the util on ALL my cards is 9%.

I got this BoA card during a recent app spree, so may be they got scared with all the new accounts, but that's not what the letter they sent me and the I CSR spoke to said.

If your total util is 9%, most of your cards have to be almost 0 balance? You have 9% alone on your BoA. Unless you have massive CL with massive balance which still equal to 9%.

This is scary. I just opened BoA card also. Any major changes on your profiles? Personal loan? Cars? anything that would show that your income is optimal?

Re: Bank of America Closed my Account

knoregs — Fri, 05 Jul 2013 15:15:31 GMT

hmmmmm

~kn

Re: Bank of America Closed my Account

QAMngrGirl — Fri, 05 Jul 2013 15:28:31 GMT

this is the first AA I've read about Bofa

Re: Bank of America Closed my Account

yellowcake — Fri, 05 Jul 2013 15:43:31 GMT

@armbenderc: Before they closed the account, I had 14 cards, 8 of them reporting a 0 balance.

Of the 6 reporting a balance, 2 were above 60% util. I shouldn't have let that happen, even though they were still in the 0% APR period.

My total credit limits is now 74,500.

Re: Bank of America Closed my Account

Marcos8 — Fri, 05 Jul 2013 16:39:14 GMT

I have had BoA give me an unannounced 50% CLD from 17,000 to 8,500. That was in 2010 and I assumed it was from my short sale hitting my report and making them weary. They gave me the explanation they were just doing this to all accounts and decreasing risk across the board. First I've heard of an account with low Utl and low total utl across all accounts being closed.

Should we all start to be more weary of app sprees and opening a bunch of new accounts all at once?

Re: Bank of America Closed my Account

Anonymous — Fri, 05 Jul 2013 17:03:21 GMT

If you don't mind sharing, what did you state your income was when you apped with them? Even at only 9%, maybe they thought your income couldn't support your balances?

Re: Bank of America Closed my Account

youngandcreditwrthy — Fri, 05 Jul 2013 17:12:54 GMT

Citi did something similar to me recently.
Closed my account for "too much open revolving credit"
My FICo is 700+, util was at 10%, and I had only 5/20 cards with a balance. Only two were maxed out (total of $10k @0%).
You just gotta know that the Fed Gov't is watching Citi/Boa especially since they received some of the biggest bailouts. If they'd get outta the way, we might actually be able to get the economy growing at a higher pace. Eh oh well. Citi and Boa are two banks that really have issues with CS and profitability.

Re: Bank of America Closed my Account

EaglesFan2006 — Fri, 05 Jul 2013 17:16:20 GMT

@youngandcreditwrthy wrote:
Citi did something similar to me recently.
Closed my account for "too much open revolving credit"
@Anonymous FICo is 700+, util was at 10%, and I had only 5/20 cards with a balance. Only two were maxed out (total of $10k @0%).
You just gotta know that the Fed Gov't is watching Citi/Boa especially since they received some of the biggest bailouts. If they'd get outta the way, we might actually be able to get the economy growing at a higher pace. Eh oh well. Citi and Boa are two banks that really have issues with CS and profitability.

Hmmm...so I guess Citi thought you had too much credit available? That's crazy. If someone is responsible, they shouldn't be penalized. If CCCs don't want us to seek better rates, rewards, etc, then they should up limits and offer more benefits on a regular basis.

Re: Bank of America Closed my Account

yellowcake — Fri, 05 Jul 2013 18:27:39 GMT

@Anonymous wrote:
If you don't mind sharing, what did you state your income was when you apped with them? Even at only 9%, maybe they thought your income couldn't support your balances?

I don't mind, it was 70,000.

Re: Bank of America Closed my Account

Anonymous — Fri, 05 Jul 2013 18:40:17 GMT

@EaglesFan2006 wrote:
@youngandcreditwrthy wrote:
Citi did something similar to me recently.
Closed my account for "too much open revolving credit"
@Anonymous FICo is 700+, util was at 10%, and I had only 5/20 cards with a balance. Only two were maxed out (total of $10k @0%).
You just gotta know that the Fed Gov't is watching Citi/Boa especially since they received some of the biggest bailouts. If they'd get outta the way, we might actually be able to get the economy growing at a higher pace. Eh oh well. Citi and Boa are two banks that really have issues with CS and profitability.
Hmmm...so I guess Citi thought you had too much credit available? That's crazy. If someone is responsible, they shouldn't be penalized. If CCCs don't want us to seek better rates, rewards, etc, then they should up limits and offer more benefits on a regular basis.

Not sure what you mean here! Presumably, Citi looked at young's CR and stated income, and decided that was too much credit for income (they did they same to be when declining a CLI). They can't force the other issuers to lower their limits, so, to cut Citi's exposure, they close the account. Nothing to do with penalizing the user (although of course that is what it seems like), just reducing the issuer's risk. Giving higher limits and more benefits would have the opposite effect for the issuer.

Re: Bank of America Closed my Account

jsickz32 — Fri, 05 Jul 2013 18:48:28 GMT

Wow sorry to hear. But i have couple of questions...that 9% UTL was spread on how many cards? And whats your total CL?

Re: Bank of America Closed my Account

yellowcake — Fri, 05 Jul 2013 18:51:52 GMT

@jsickz32 wrote:
Wow sorry to hear. But i have couple of questions...that 9% UTL was spread on how many cards? And whats your total CL?

14 cards total, 6 actually reporting balances. 74,500 total CL.

Re: Bank of America Closed my Account

jsickz32 — Fri, 05 Jul 2013 18:54:03 GMT

Yeah i wouldnt recommend keeping balances on more than 3 cards at a time. I opened 19 ccs in 6 months and 2 of them were Bofa but they never gave me any problems.

Re: Bank of America Closed my Account

EaglesFan2006 — Fri, 05 Jul 2013 18:56:37 GMT

@Anonymous wrote:
@EaglesFan2006 wrote:
@youngandcreditwrthy wrote:
Citi did something similar to me recently.
Closed my account for "too much open revolving credit"
@Anonymous FICo is 700+, util was at 10%, and I had only 5/20 cards with a balance. Only two were maxed out (total of $10k @0%).
You just gotta know that the Fed Gov't is watching Citi/Boa especially since they received some of the biggest bailouts. If they'd get outta the way, we might actually be able to get the economy growing at a higher pace. Eh oh well. Citi and Boa are two banks that really have issues with CS and profitability.
Hmmm...so I guess Citi thought you had too much credit available? That's crazy. If someone is responsible, they shouldn't be penalized. If CCCs don't want us to seek better rates, rewards, etc, then they should up limits and offer more benefits on a regular basis.
Not sure what you mean here! Presumably, Citi looked at young's CR and stated income, and decided that was too much credit for income (they did they same to be when declining a CLI). They can't force the other issuers to lower their limits, so, to cut Citi's exposure, they close the account. Nothing to do with penalizing the user (although of course that is what it seems like), just reducing the issuer's risk. Giving higher limits and more benefits would have the opposite effect for the issuer.

yeah i understand why they did what they did, but i'm just saying that I think it's a lousy practice..but I understand they have people whose job it is to access risk.

Re: Bank of America Closed my Account

jsickz32 — Fri, 05 Jul 2013 19:35:47 GMT

@EaglesFan2006 wrote:
@Anonymous wrote:
@EaglesFan2006 wrote:
@youngandcreditwrthy wrote:
Citi did something similar to me recently.
Closed my account for "too much open revolving credit"
@Anonymous FICo is 700+, util was at 10%, and I had only 5/20 cards with a balance. Only two were maxed out (total of $10k @0%).
You just gotta know that the Fed Gov't is watching Citi/Boa especially since they received some of the biggest bailouts. If they'd get outta the way, we might actually be able to get the economy growing at a higher pace. Eh oh well. Citi and Boa are two banks that really have issues with CS and profitability.
Hmmm...so I guess Citi thought you had too much credit available? That's crazy. If someone is responsible, they shouldn't be penalized. If CCCs don't want us to seek better rates, rewards, etc, then they should up limits and offer more benefits on a regular basis.
Not sure what you mean here! Presumably, Citi looked at young's CR and stated income, and decided that was too much credit for income (they did they same to be when declining a CLI). They can't force the other issuers to lower their limits, so, to cut Citi's exposure, they close the account. Nothing to do with penalizing the user (although of course that is what it seems like), just reducing the issuer's risk. Giving higher limits and more benefits would have the opposite effect for the issuer.
yeah i understand why they did what they did, but i'm just saying that I think it's a lousy practice..but I understand they have people whose job it is to access risk.

Theres more to youngs story thoo. Its not that just citi decided to close his card out of nowhere. He said he had 170k in cls at the time with 10% utl. Thats 17k in cc debt spread on 5 cards with 2 of them maxed. I been here as long as him and i know he likes to use the BT 0% offers. So who knows how long he's been carrying balances like that. im not saying he cant pay off the debt because i remember him saying that he just rathers have his money sit on his savings account since his cards have 0% apr.

Maybe Citi just felt nervous with him carrying those balances and decided to close the account to lower their exposure.

Re: Bank of America Closed my Account

maiden_girl — Fri, 05 Jul 2013 19:51:59 GMT

@Marcos8 wrote:
I have had BoA give me an unannounced 50% CLD from 17,000 to 8,500. That was in 2010 and I assumed it was from my short sale hitting my report and making them weary. They gave me the explanation they were just doing this to all accounts and decreasing risk across the board. First I've heard of an account with low Utl and low total utl across all accounts being closed.

Should we all start to be more weary of app sprees and opening a bunch of new accounts all at once?

Not completely unheard of with BOA. My sister had a 20k CL with them and when the housing market crash stuff started happening she got CLD to 10k. She also got a letter stating that they felt she would never need this much credit and were therefore decreasing it.