topic Re: Credit Impact on Dumping BofA in Understanding FICO® Scoring

Credit Impact on Dumping BofA

pennccrn — Sun, 12 Jul 2015 20:34:49 GMT

Hi, all, I have about $50K in CL across a few cards. I have a BofA card that had the limit cut back in 2008 from 6K to 1K. With all of my other cards having limits exceeding 10K, I was thinking about closing this account. Also, the reward program sucks and the APR is close to 26% that hasn't changed, so I don't use it a whole lot. Any thoughts on how this might impact my FICO? I only have 1-2 HP between each of the CB, my CU is about 12%.

Thanks

Re: Credit Impact on Dumping BofA

Revelate — Sun, 12 Jul 2015 20:47:00 GMT

@pennccrn wrote:
Hi, all, I have about $50K in CL across a few cards. I have a BofA card that had the limit cut back in 2008 from 6K to 1K. With all of my other cards having limits exceeding 10K, I was thinking about closing this account. Also, the reward program sucks and the APR is close to 26% that hasn't changed, so I don't use it a whole lot. Any thoughts on how this might impact my FICO? I only have 1-2 HP between each of the CB, my CU is about 12%.

Thanks

Zero FICO impact for the next 10 years (until it falls off your report), though TBH assuming you're on one of their current $0 AF crop of cards, not certain I see much upside to closing it unless it's just irritating you.

There's something to be said for keeping $0 AF national bank cards forever, and BOFA almost certainly will come out with a new product which is more attractive from a rewards perspective in the future that you might be able to product change into. I know I'm not giving up the original BOFA secured card that I started with that is now sitting at a barely used, comparitively low limit $0 AF card.

Re: Credit Impact on Dumping BofA

Kenny — Sun, 12 Jul 2015 21:00:37 GMT

They also have a dedicated APR reduction number that you could try before closing.

Re: Credit Impact on Dumping BofA

CH-7-Mission-Accomplished — Mon, 13 Jul 2015 00:24:07 GMT

Call and ask them to give you a CLI. They are known to pull whichever credit report you want them to. *edit* Get your CLI.

I would probably make a separate call after the CLI and ask for a rate reduction.

*can't speak on selective freezing of bureaus.*

Re: Credit Impact on Dumping BofA

NRB525 — Mon, 13 Jul 2015 00:34:10 GMT

1) Keep it open.

2) Try to get a CLI.

3) Try to get an APR Reduction

4) Call about PC to a different product with more rewards

In that order

BofA rocks in my book, so my advice is to work with them.

I also went through CLD on both my BofA cards, and other banks. However BofA did not change terms, so I kept my 7.9%APR on my AMEX, and 11.24%APR on the MasterCard. The limits are usable still, and they recently gave me a $3k auto CLI on the AMEX, and BT offers every month like clockwork.

Are you using the card for PIF spend? Highly recommended. APR is irrelevant for PIF.

Re: Credit Impact on Dumping BofA

pennccrn — Tue, 14 Jul 2015 02:53:42 GMT

@NRB525 wrote:
1) Keep it open.
2) Try to get a CLI.
3) Try to get an APR Reduction
4) Call about PC to a different product with more rewards

In that order

BofA rocks in my book, so my advice is to work with them.
I also went through CLD on both my BofA cards, and other banks. However BofA did not change terms, so I kept my 7.9%APR on my AMEX, and 11.24%APR on the MasterCard. The limits are usable still, and they recently gave me a $3k auto CLI on the AMEX, and BT offers every month like clockwork.

Are you using the card for PIF spend? Highly recommended. APR is irrelevant for PIF.

Thanks, for all the advice. I actually got this card before BofA bought MBNA, so this card was actually a Wachovia card, issued by MBNA (if anyone is old enough to remember them!) So it's a pretty older reporting card (but not my oldest) and likely helps out my AAoA. NRB525, I do PIF my BofA cards so your right, APR isn't really an issue. Honestly, its more the CL than anything else, since I can't really spend more than $300 without getting dinged for utilization. Also, I live in San Francisco where $300 doesn't get you very far ! I think it just comes down to remembering to use it since I have two cards with AF with really great rewards, so I like to put the bulk of my charge volume on those.

Think I will call them up and see if they can offer anything substantial, so thanks everyone for this. I feel honored to be surrounded my many credit enlightened ppl ! One final question, with BofA I haven't really updated my income profile in close to ten years. Think that's worth mentioning since its increased a fair amount since I initially started working?

Cheers !

Re: Credit Impact on Dumping BofA

Anonymous — Wed, 15 Jul 2015 05:53:14 GMT

@pennccrn wrote:
@NRB525 wrote:
1) Keep it open.
2) Try to get a CLI.
3) Try to get an APR Reduction
4) Call about PC to a different product with more rewards

In that order

BofA rocks in my book, so my advice is to work with them.
I also went through CLD on both my BofA cards, and other banks. However BofA did not change terms, so I kept my 7.9%APR on my AMEX, and 11.24%APR on the MasterCard. The limits are usable still, and they recently gave me a $3k auto CLI on the AMEX, and BT offers every month like clockwork.

Are you using the card for PIF spend? Highly recommended. APR is irrelevant for PIF.
Thanks, for all the advice. I actually got this card before BofA bought MBNA, so this card was actually a Wachovia card, issued by MBNA (if anyone is old enough to remember them!) So it's a pretty older reporting card (but not my oldest) and likely helps out my AAoA. NRB525, I do PIF my BofA cards so your right, APR isn't really an issue. Honestly, its more the CL than anything else, since I can't really spend more than $300 without getting dinged for utilization. Also, I live in San Francisco where $300 doesn't get you very far ! I think it just comes down to remembering to use it since I have two cards with AF with really great rewards, so I like to put the bulk of my charge volume on those.

Think I will call them up and see if they can offer anything substantial, so thanks everyone for this. I feel honored to be surrounded my many credit enlightened ppl ! One final question, with BofA I haven't really updated my income profile in close to ten years. Think that's worth mentioning since its increased a fair amount since I initially started working?

Cheers !

Thanks for sharing your story. Please let us know the outcome of your inquiries.

Re: Credit Impact on Dumping BofA

pennccrn — Wed, 15 Jul 2015 06:23:11 GMT

Just an update:

Called BofA to get some better terms on this card, I left with more questions than answers:

1) Got transferred to the retention department, rep was nice but was very confused b/c per her own admission this account was in "excellent" standing and why the APR was so high- even went on to throw a balance transfer offer for me (don't really need it, but thanks). I proceeded to tell her I live in San Francisco and 1K wouldn't even get me through two weeks of living expenses ... haha.

2) The CSR was perplexed on why I would have a 13% APR on one card and a 28% on this card, told her that I forget to use this card with a small limit. Told her that I avoid using this card because of the APR (not really true but just to put a little pressure) and the low CL.

3) Chatted a bit about merging merging this CL with my other card, which would be best - although the outcome of this was that it would take three days to be reviewed by a "credit analyst"

Anyway, didn't really make any headway. My initial impression is that this really an annoyance and a waste of my time - but I'll stick it out to see what this analyst has to say. Thoughts?

Re: Credit Impact on Dumping BofA

Anonymous — Thu, 16 Jul 2015 03:07:38 GMT

Interesting to see that you had a good customer experience with them. I have been banking with them for over 15 years and have nothing good to say. But they gave me my secured credit card that let me down the path I am here today. So for that I am very greatful for their CC department. When I stepp out of the garden once this year, I'll be snagging an NFCU card and closing my BoA check and saving...I've decided I'll keep the card if I can get an CLI.

Re: Credit Impact on Dumping BofA

NRB525 — Thu, 16 Jul 2015 04:07:24 GMT

@pennccrn wrote:
Just an update:

Called BofA to get some better terms on this card, I left with more questions than answers:

1) Got transferred to the retention department, rep was nice but was very confused b/c per her own admission this account was in "excellent" standing and why the APR was so high- even went on to throw a balance transfer offer for me (don't really need it, but thanks). I proceeded to tell her I live in San Francisco and 1K wouldn't even get me through two weeks of living expenses ... haha.
2) The CSR was perplexed on why I would have a 13% APR on one card and a 28% on this card, told her that I forget to use this card with a small limit. Told her that I avoid using this card because of the APR (not really true but just to put a little pressure) and the low CL.
3) Chatted a bit about merging merging this CL with my other card, which would be best - although the outcome of this was that it would take three days to be reviewed by a "credit analyst"

Anyway, didn't really make any headway. My initial impression is that this really an annoyance and a waste of my time - but I'll stick it out to see what this analyst has to say. Thoughts?

It sounds like they do need some time to catch up to the account, to figure the possibilities. As long as they are just working through their procedures, my opinion is to just let it flow. Pestering a bureaucracy is not terribly productive

After you get a final response, then decide what to do.

Good luck!

Re: Credit Impact on Dumping BofA

pennccrn — Tue, 21 Jul 2015 07:16:02 GMT

Hi all: Sady, BofA was unable to process merging of my credit cards after they requested a HP. Since a security freeze was in place, the CR release was declined. I'm actually glad this was declined because I didn't consent really to a HP - just wanted the credit lines merged. (As you recall, I have two BofA credit cards - one with a 7.4K limit and another with a 1K limit. The one with the 1K limit didn't have very favorable terms - open about ten years, poor rewards program - Worldpoints, and a significantly high APR 28% compared to my 13% on my other card)

I'll likely close this account since in my estimation the hit to my credit is neglligable. Have a total credit line across all credit cards as 64,500 and have about a 12% UR. A loss of 1K isn't likely to bring me up to the 30% threshold. Also, I have 3 other cards that have a ten year or longer history (my oldest card is a credit union card that's been open since 2003). In the end, I still have another BofA card, but I just had no use for this card and it became an annoyance to use - I couldn't ever spend more than $300 without it affecting my credit.

Thanks again for the support and all of your comments. Even though the outcome wasn't favorable, I did value all of your insight. My experience with BofA over the last ten years is that they are a good bank for moderate income earners and/or repairing your credit and cater to a middle-of-the-road clientel. However, I felt that I've outgrown them as a competitive credit card for those with excellent credit.

Re: Credit Impact on Dumping BofA

pennccrn — Tue, 08 Sep 2015 16:35:12 GMT

So just an update, whith a happy ending, albieit strange that I wanted to share with the community:

1) As you know, I had two credit cards both for about 7 years. One was an old MBNA card that FIA (Bank of America) aquired and another was a traditional Bank of America card. The MBNA card had the limit cut from 6K to 1K, had a high interest rate and I was never really using this one.

2) I had to want to merge it with my other BofA card, however B of A told me that this would be a HP, since my credits frozen didn't want to do this or waste an inqury. So I closed the MBNA account.

3) Found out today, that after closing this account - Got a CLI from 7.4K to 10.4K! Even higher than I was requested since the old card just had 1K! So it was a round-about kinda of way but it looks like in the end, I got a better deal!

@pennccrn wrote:
Hi all: Sady, BofA was unable to process merging of my credit cards after they requested a HP. Since a security freeze was in place, the CR release was declined. I'm actually glad this was declined because I didn't consent really to a HP - just wanted the credit lines merged. (As you recall, I have two BofA credit cards - one with a 7.4K limit and another with a 1K limit. The one with the 1K limit didn't have very favorable terms - open about ten years, poor rewards program - Worldpoints, and a significantly high APR 28% compared to my 13% on my other card)

I'll likely close this account since in my estimation the hit to my credit is neglligable. Have a total credit line across all credit cards as 64,500 and have about a 12% UR. A loss of 1K isn't likely to bring me up to the 30% threshold. Also, I have 3 other cards that have a ten year or longer history (my oldest card is a credit union card that's been open since 2003). In the end, I still have another BofA card, but I just had no use for this card and it became an annoyance to use - I couldn't ever spend more than $300 without it affecting my credit.

Thanks again for the support and all of your comments. Even though the outcome wasn't favorable, I did value all of your insight. My experience with BofA over the last ten years is that they are a good bank for moderate income earners and/or repairing your credit and cater to a middle-of-the-road clientel. However, I felt that I've outgrown them as a competitive credit card for those with excellent credit.