topic Re: Will CITI close my account? in Credit Cards

Will CITI close my account?

Anonymous — Thu, 27 Mar 2014 03:46:50 GMT

A friend of mine who currently lives with me applied and got approved for a CITI dividend credit card ($3000) almost 4 months ago. He maxed out the credit and hasn't made a single payment on the account.

Now I have the same credit card with CITI, so my question is, will CITI bank close my account if he decides to never pay that bill, since him and I live in the same house?

Re: Will CITI close my account?

gdale6 — Thu, 27 Mar 2014 04:12:39 GMT

@Anonymous wrote:
A friend of mine who currently lives with me applied and got approved for a CITI dividend credit card ($3000) almost 4 months ago. He maxed out the credit and hasn't made a single payment on the account.

Now I have the same credit card with CITI, so my question is, will CITI bank close my account if he decides to never pay that bill, since him and I live in the same house?

Re: Will CITI close my account?

improvingmycredit — Thu, 27 Mar 2014 05:04:04 GMT

Hey Johnnyblaze1986!

Unless you are directly tied to the account financially, I don't see how it could affect you personally.

Are you a joint owner? If not, I wouldn't be worried about it. Manage your account well and you are cake.

Re: Will CITI close my account?

eagle2013 — Thu, 27 Mar 2014 05:41:13 GMT

In theory, no, your account won't be affected by another account to which you are not financially responsibile for (i.e., joint account).

However, it should be said that CRAs and credit card companies have very complex algorithims to determine many things - a lot of which is unknown to us (for obvious reasons). Kind of the reason why AUs can be added on cards without SSNs (just name) in a lot of cases. It would be naive to assume that a part of their risk analysis wouldn't involve similar types of cross-matching, particularly with addresses.

I say all of that to say your likelihood of an adverse action (e.g., credit limit decrease, fraud report, CLI denial or outright account cancellation) is not favorable if an individual living in your same address is in default. Again, no evidence of this but it is concerning.

Re: Will CITI close my account?

Anonymous — Thu, 27 Mar 2014 05:47:24 GMT

I'm not a co-applicant on the account, just live at the same address. The limit on my account on my is $14,000, and the thought of CITI closing my account because of someone delinquent account who lives at the same address crossed my mind.

Just asking if that was a possibility.

Re: Will CITI close my account?

Anonymous — Thu, 27 Mar 2014 05:50:55 GMT

@eagle2013 wrote:
In theory, no, your account won't be affected by another account to which you are not financially responsibile for (i.e., joint account).

However, it should be said that CRAs and credit card companies have very complex algorithims to determine many things - a lot of which is unknown to us (for obvious reasons). Kind of the reason why AUs can be added on cards without SSNs (just name) in a lot of cases. It would be naive to assume that a part of their risk analysis wouldn't involve similar types of cross-matching, particularly with addresses.

I say all of that to say your likelihood of an adverse action (e.g., credit limit decrease, fraud report, CLI denial or outright account cancellation) is not favorable if an individual living in your same address is in default. Again, no evidence of this but it is concerning.

+1.

Most likely Citi will SP your file, and also anyone else's who lives in the same household, and review them. However, it is unlikely that your accounts will be affected unless your accounts had been late / deliquent or you have a really low internal score for some reason.

Re: Will CITI close my account?

azguy13 — Thu, 27 Mar 2014 05:53:45 GMT

@eagle2013 wrote:
In theory, no, your account won't be affected by another account to which you are not financially responsibile for (i.e., joint account).

However, it should be said that CRAs and credit card companies have very complex algorithims to determine many things - a lot of which is unknown to us (for obvious reasons). Kind of the reason why AUs can be added on cards without SSNs (just name) in a lot of cases. It would be naive to assume that a part of their risk analysis wouldn't involve similar types of cross-matching, particularly with addresses.

I say all of that to say your likelihood of an adverse action (e.g., credit limit decrease, fraud report, CLI denial or outright account cancellation) is not favorable if an individual living in your same address is in default. Again, no evidence of this but it is concerning.

I have to disagree 100% on this unless you can come up with an example. I have never read a thread on this happening to someone nor has anyone ever mentioned it. Stop scaring the poor guy with guesses that have absolutely no facts to back it up.

If I read that wrong and you are saying that he should not worry, then I agree.

Re: Will CITI close my account?

eagle2013 — Thu, 27 Mar 2014 06:02:33 GMT

@azguy13 wrote:
@eagle2013 wrote:
In theory, no, your account won't be affected by another account to which you are not financially responsibile for (i.e., joint account).

However, it should be said that CRAs and credit card companies have very complex algorithims to determine many things - a lot of which is unknown to us (for obvious reasons). Kind of the reason why AUs can be added on cards without SSNs (just name) in a lot of cases. It would be naive to assume that a part of their risk analysis wouldn't involve similar types of cross-matching, particularly with addresses.

I say all of that to say your likelihood of an adverse action (e.g., credit limit decrease, fraud report, CLI denial or outright account cancellation) is not favorable if an individual living in your same address is in default. Again, no evidence of this but it is concerning.
I have to disagree 100% on this unless you can come up with an example. I have never read a thread on this happening to someone nor has anyone ever mentioned it. Stop scaring the poor guy with guesses that have absolutely no facts to back it up.

If I read that wrong and you are saying that he should not worry, then I agree.

I already included that I have no evidence of this occuring. The only thing I can say is that the OP shouldn't be suprised if, as enharu stated, there are SPs on his account and/or further adverse action by Citi due to association (via household address) to someone currently in default with Citi.

Re: Will CITI close my account?

azguy13 — Thu, 27 Mar 2014 06:05:51 GMT

@eagle2013 wrote:
@azguy13 wrote:
@eagle2013 wrote:
In theory, no, your account won't be affected by another account to which you are not financially responsibile for (i.e., joint account).

However, it should be said that CRAs and credit card companies have very complex algorithims to determine many things - a lot of which is unknown to us (for obvious reasons). Kind of the reason why AUs can be added on cards without SSNs (just name) in a lot of cases. It would be naive to assume that a part of their risk analysis wouldn't involve similar types of cross-matching, particularly with addresses.

I say all of that to say your likelihood of an adverse action (e.g., credit limit decrease, fraud report, CLI denial or outright account cancellation) is not favorable if an individual living in your same address is in default. Again, no evidence of this but it is concerning.
I have to disagree 100% on this unless you can come up with an example. I have never read a thread on this happening to someone nor has anyone ever mentioned it. Stop scaring the poor guy with guesses that have absolutely no facts to back it up.

If I read that wrong and you are saying that he should not worry, then I agree.
I already included that I have no evidence of this occuring. The only thing I can say is that the OP shouldn't be suprised if, as enharu stated, there are SPs on his account and/or further adverse action by Citi due to association (via household address) to someone currently in default with Citi.

I understand you stated that you have no evidence of your claim. I am just stating that it is irresponsible to tell someone that Citi could AA them because of someone who lives in their house that has NOTHING to do with their account. I just dont understand how you could "expect" that when it has never happened. By that logic, I can tell people they should expect a huge CLI if their roomate who, has nothing to do with thier account, gets one.

I also do not consider a SP to be AA.

Re: Will CITI close my account?

Anonymous — Thu, 27 Mar 2014 06:08:51 GMT

@azguy, there have been examples of such scenarios, though its chase and Amex instead of citi.

You can probably look around on this forums and also others, including fatwallet. I remember cases of American Express conducting financial review on the entire household and company (small firm; employees were AUs but personal cards were FR too) by association.

There are also examples of chase closing all accounts in the household after a review; most that I have read due to 1 member in the household abusing rewards.

Most importantly, FR / AA by association is VERY rare. Can it happen? Yes. Will it happen? Most likely not. Lenders probably SP all household members though and review the files accordingly.

Re: Will CITI close my account?

azguy13 — Thu, 27 Mar 2014 06:13:19 GMT

@Anonymous wrote:
@Anonymous, there have been examples of such scenarios, though its chase and Amex instead of citi.

You can probably look around on this forums and also others, including fatwallet. I remember cases of American Express conducting financial review on the entire household and company (small firm; employees were AUs but personal cards were FR too) by association.

There are also examples of chase closing all accounts in the household after a review; most that I have read due to 1 member in the household abusing rewards.

Most importantly, FR / AA by association is VERY rare. Can it happen? Yes. Will it happen? Most likely not. Lenders probably SP all household members though and review the files accordingly.

I can understand AU on a business account because those people are linked in a way. Even if it has happened twice with other lenders, we should not be telling new people on this forum that it is unfavorable. That is like telling every AMEX carrier they will get a FR/AA. No need to worry people like that without sufficient evidence.

Re: Will CITI close my account?

09Lexie — Thu, 27 Mar 2014 06:12:44 GMT

@Anonymous wrote:
@Anonymous, there have been examples of such scenarios, though its chase and Amex instead of citi.

You can probably look around on this forums and also others, including fatwallet. I remember cases of American Express conducting financial review on the entire household and company (small firm; employees were AUs but personal cards were FR too) by association.

There are also examples of chase closing all accounts in the household after a review; most that I have read due to 1 member in the household abusing rewards.

Most importantly, FR / AA by association is VERY rare. Can it happen? Yes. Will it happen? Most likely not. Lenders probably SP all household members though and review the files accordingly.

I recall a thread last year where Amex closed down cc's for the owner of a business, his relatives and most of his employees. Of course, it was asked if the cc's were tied to the business but I believe the answer was no.

Rare, yes but it is possible.

Re: Will CITI close my account?

azguy13 — Thu, 27 Mar 2014 06:19:15 GMT

@09Lexie wrote:
@Anonymous wrote:
@Anonymous, there have been examples of such scenarios, though its chase and Amex instead of citi.

You can probably look around on this forums and also others, including fatwallet. I remember cases of American Express conducting financial review on the entire household and company (small firm; employees were AUs but personal cards were FR too) by association.

There are also examples of chase closing all accounts in the household after a review; most that I have read due to 1 member in the household abusing rewards.

Most importantly, FR / AA by association is VERY rare. Can it happen? Yes. Will it happen? Most likely not. Lenders probably SP all household members though and review the files accordingly.
I recall a thread last year where Amex closed down cc's for the owner of a business, his relatives and most of his employees. Of course, it was asked if the cc's were tied to the business but I believe the answer was no.

Rare, yes but it is possible.

I understand it is rare, I just hate to see new guys on the forum getting bad info. A rare occurrence does not equal unfavorable odds. I am not trying to be argumentative in any fashion, I just do not want the OP to stress about something that has happened to .00001% of all credit card users.

Re: Will CITI close my account?

Anonymous — Thu, 27 Mar 2014 06:20:55 GMT

@azguy13 wrote:
@Anonymous wrote:
@Anonymous, there have been examples of such scenarios, though its chase and Amex instead of citi.

You can probably look around on this forums and also others, including fatwallet. I remember cases of American Express conducting financial review on the entire household and company (small firm; employees were AUs but personal cards were FR too) by association.

There are also examples of chase closing all accounts in the household after a review; most that I have read due to 1 member in the household abusing rewards.

Most importantly, FR / AA by association is VERY rare. Can it happen? Yes. Will it happen? Most likely not. Lenders probably SP all household members though and review the files accordingly.
I can understand AU on a business account because those people are linked in a way. Even if it has happened twice with other lenders, we should not be telling new people on this forum that it is unfavorable. That is like telling every AMEX carrier they will get a FR/AA. No need to worry people like that without sufficient evidence.

With Chase, it has happened more than just twice. A lot of people who abused the AARP cards got their accounts shut down, and in rarer circumstances, also dragged down their family members.

With American Express, family members who weren't associated with the business or AUs on those accounts were asked for financial docs too. And getting FR'ed because you are an AU on a corporate card is pretty much the worst thing that can happen - you are getting scrutinized for something out of your control. Yes, those people are linked, but the only way they are linked is that they're employees of the firm and they collect a paycheck from that company. They aren't responsible for paying for that CC bill.

There are also separate cases where Amex FR'ed an entire family.

Situations like this has happened before and will happen again. However, like I said, it's very rare. I'm not saying OP's is in a unfavorable position. I'm just saying Citi will most likely just SP him, and that'll be end of the story. However, there's also a remote possibility that his accounts may be affected. It's just like telling everyone that they all have a remote chance of getting FR / AA. Just because something rarely happens doesn't mean we have to assume and tell everyone that it never happens. We should simply just also include the fact that such possibilities are extremely slim.

Re: Will CITI close my account?

azguy13 — Thu, 27 Mar 2014 06:24:20 GMT

@Anonymous wrote:
@azguy13 wrote:
@Anonymous wrote:
@Anonymous, there have been examples of such scenarios, though its chase and Amex instead of citi.

You can probably look around on this forums and also others, including fatwallet. I remember cases of American Express conducting financial review on the entire household and company (small firm; employees were AUs but personal cards were FR too) by association.

There are also examples of chase closing all accounts in the household after a review; most that I have read due to 1 member in the household abusing rewards.

Most importantly, FR / AA by association is VERY rare. Can it happen? Yes. Will it happen? Most likely not. Lenders probably SP all household members though and review the files accordingly.
I can understand AU on a business account because those people are linked in a way. Even if it has happened twice with other lenders, we should not be telling new people on this forum that it is unfavorable. That is like telling every AMEX carrier they will get a FR/AA. No need to worry people like that without sufficient evidence.
With Chase, it has happened more than just twice. A lot of people who abused the AARP cards got their accounts shut down, and in rarer circumstances, also dragged down their family members.

With American Express, family members who weren't associated with the business or AUs on those accounts were asked for financial docs too. And getting FR'ed because you are an AU on a corporate card is pretty much the worst thing that can happen - you are getting scrutinized for something out of your control. Yes, those people are linked, but the only way they are linked is that they're employees of the firm and they collect a paycheck from that company. They aren't responsible for paying for that CC bill.

There are also separate cases where Amex FR'ed an entire family.

Situations like this has happened before and will happen again. However, like I said, it's very rare. I'm not saying OP's is in a unfavorable position. I'm just saying Citi will most likely just SP him, and that'll be end of the story. However, there's also a remote possibility that his accounts may be affected. It's just like telling everyone that they all have a remote chance of getting FR / AA. Just because something rarely happens doesn't mean we have to assume and tell everyone that it never happens. We should simply just also include the fact that such possibilities are extremely slim.

I agree with you 100% that they will probably be SP'd. I know if I was the lender I would SP the other card holders in the house just to make sure they arent charging $10K and paying the minimum payment for 6+ months. My only issue was the word 'unfavorable' (you werent the one to use it). I do appreciate the education though. It is yet another thing I have learned today.

Re: Will CITI close my account?

Anonymous — Thu, 27 Mar 2014 06:34:36 GMT

Hummm, interesting info.

I have no negative information on my credit report, with all my scores ranging from 790-802. So if I get CLD, or even worse account close by CITI, it will be because of the account that's link to my address. I guess only time will tell...

Re: Will CITI close my account?

eagle2013 — Thu, 27 Mar 2014 06:37:03 GMT

Scenario 1 : You and all household members associated with your address are in compliance with Citi = favorable

Scenario 2: A member of your household is in serious default with Citi while you are currently cardholder = unfavorable

Re: Will CITI close my account?

azguy13 — Thu, 27 Mar 2014 06:37:47 GMT

@Anonymous wrote:
Hummm, interesting info.

I have no negative information on my credit report, with all my scores ranging from 790-802. So if I get CLD, or even worse account close by CITI, it will be because of the account that's link to my address. I guess only time will tell...

As long as you are responsible I wouldn't worry (especially with those scores). Sounds to me like you should educate your roommate, lol. You are obviously a responsible spender.

Re: Will CITI close my account?

sailor_mercury — Thu, 27 Mar 2014 06:38:46 GMT

@Anonymous wrote:
Hummm, interesting info.

I have no negative information on my credit report, with all my scores ranging from 790-802. So if I get CLD, or even worse account close by CITI, it will be because of the account that's link to my address. I guess only time will tell...

As other posters have stated, I think the possibility is VERY remote. You might pop up for a statistical analysis but if they review your file it is likely no action will be taken. Your scores are exemplary, you have an excellent account history. Could they decide to do something? Yes but it's far more likely that they want you as a customer and will not take any action.

Re: Will CITI close my account?

azguy13 — Thu, 27 Mar 2014 06:47:12 GMT