topic Re: Am I better off closing the account??? in General Credit Topics

Am I better off closing the account???

Anonymous — Mon, 17 Nov 2008 21:32:04 GMT

I had nothing but issues with HSBC/Orchard Bank CC. I religously made all my payments over the minmum amount and on time. I did not go over my limit. I was told that after 6 months I would get acredit increase--from my $300 initial CL.... Well It's been 11 months and they said that "they cannot increase my limit at this time." I have several other cards that increase my CL after 6-9 months....I have 6 other cards in good standing and my Experian score is about 600. My question is, should I close the account myself or wait for them to do so (send to collections)..???

Re: Am I better off closing the account???

marty56 — Mon, 17 Nov 2008 21:40:29 GMT

Welcome to the forum. Many CCCs do do a CLI aftert less then a year. Unless the card is costing you an yearly and or monthly fee, I would not close it in that it could lwer your FICO score and some CCCs (Capitol 1) wont issue you another card if you closed an account with them in the past.

Your account wont go to collection unless you do pay it. If you dont use it, they may close it eventually so if you want to keep it, charge a small amount every other month or so and PIF it.

I have a Sams card that started at $300 and it is now at $3100 after 4 years. I never asked for a CLI they just did it every so often.

Re: Am I better off closing the account???

Anonymous — Mon, 17 Nov 2008 21:50:34 GMT

Thanks Marty, but I'm more than a little upset that my credit line has not increased from the initial $300 limit... All my other cards have given me some type of increase. Coinsidering my income is over $75K, I find a $300 limit to be ajoke. I understand my credit score is pretty poor... but after paying on time and more than the minimum I'[d think an increase of say $200 is not too much to ask....My credit score is slowly impoorving, all my other cards---B of A, First Premier, Cap 1, CreditOne, FirstSavings, Merrick--have given me some type of increase .... I don't want to trash the improvement to my score I've made, but I'm not too happy with Orchard/HSBC.... Oh, I already cut up the Orchaerd card....

Re: Am I better off closing the account???

laz98 — Mon, 17 Nov 2008 23:34:12 GMT

you sound like a smart guy, so i doubt you are going to let your account go to collections. if you are that upset about how they are handling your account, then just pay off your balance & sock drawer the card.

Re: Am I better off closing the account???

Anonymous — Tue, 18 Nov 2008 04:43:47 GMT

Laz,

I do consider myself a fairly sharp guy but when Orchard gives me an initial CL of $300 and 11 months later it has not gone up, even though I paid on time, more than the minimum, and never gone over limit .. well I find that to be kinda crappy...My other cards have CL of from $500 -$2500-- only 1 card is a $500, two at $750, 1 at $1000, one at $1500, and one at $2500...So I called Orchard and said that the card companies that know how to treat agood customer will get my $$... I closed the account.... They can take me to collections, and I'll settle my $279 balance for about $100-150.... This was a matter of principal... I'd think with so many people NOT paying their bills or paying late, they'd throw a good customer a bone now and then.... I guess they didn't need my business.....

Re: Am I better off closing the account???

Junejer — Tue, 18 Nov 2008 05:42:38 GMT

I understand that you are upset right now, but I don't think that you want to allow it to go to collections. If you think your score is low now, just wait until all of that doodoo hits the fan. Your scores are going to tank and you will be years trying to get out of it. Pay the $279 and be done with them.

Re: Am I better off closing the account???

Anonymous — Tue, 18 Nov 2008 06:02:15 GMT

Byrdman,

Before they send it to collections they will contact me...I plan on paying this off.... As bad as this may sound, regardless of how low it drops my score, I will not deal with a company like this that treats their good customers like crap.... FICO score be damned... I'd rather not have my score drop, but if that happens then so be it.... They told me one thing, and then went back on their word.... My other cards are fine. My score now is about 600-610, even if this episode with Orchard drops it to 490-500 I will not deal with the b.s. that I got from them... Hopefully since I do intend to pay this, it won't damage my credit score, but if so...

Re: Am I better off closing the account???

Junejer — Tue, 18 Nov 2008 06:08:48 GMT

Trust me, I feel where you are coming from. I have an Orchard Card that is by far my lowest CL $700. It started at $500 last Dec. I sockdrawered it and they gave me a little CLI. It is currently sockdrawered again and will remain so. I don't want to close it out yet.

That said, yes they will contact you before it goes to collection, but by that time, you will have a multiple string of major derogatories (60, 90, 120 days p.d.). All that for $279! Ask yourself who are you sending the message to--Orchard or yourself. I still suggest paying the balance off and telling them to stick their card where the sun doesn't shine.

Re: Am I better off closing the account???

Anonymous — Tue, 18 Nov 2008 06:14:21 GMT

byrdman,

I made my last payment November 14 (Friday).. It wasn't due till Dec 1. I called and closed the account. Are they going to send me regular bills since I closed the account? How does it work after I ask to close the account?

Re: Am I better off closing the account???

Junejer — Tue, 18 Nov 2008 06:28:48 GMT

I am not sure. I would think so, but do yourself a favor and call and ask. Don't be late and cost yourself years of agony over this. Ask if they are going to send you regular bills.

Also know that this card's util is about to go nuts. $279 balance on a $0 CL

Re: Am I better off closing the account???

RobertEG — Tue, 18 Nov 2008 07:13:49 GMT

With your relativley short history on the account,. and your low CL. it will have minimal FICO impact.

When you close the account,. you will lose all time with the account in your avg age of revolv accounts calculation, but that may in fact actually HELP you if the 11 months on that stupid account is less than your combined age of all accounts.

Closing the account will cause you to lose the $300CL in your overall % util calculation, aqain no biggie with your other CLs

So the ONLY factor that I see is to ensure that you closed the account in good standing. No delinquencies reported to the CRAs, and no account balance. If that is the case, they are history..

Re: Am I better off closing the account???

Anonymous — Tue, 18 Nov 2008 07:31:24 GMT

Robert,

So what you're saying is that it might be a GOOD thing to close this account. I have no deliquincies. I'll call Orchard tomorrow morning and see if I canpay the balance monthly or if they want it paid in full. My other six open accounts range in age from 1 year to 3 months.... average age is about 6-7 months old...My total available credit is around $7K and I'm only using about $2K of that$7K....

Re: Am I better off closing the account???

llecs — Tue, 18 Nov 2008 14:08:32 GMT

Orchard is meant to be a rebuilding card. It isn't supposed to grow with you. I also have the card (partially secured at $600) but plan on cancelling it very very soon. All my other CLs (except for a couple) are at $1500 or greater and the $600 is not likely to increase.

If you close it, it will continue to help your utilization so as long as there is a balance. Once the balance reaches $0, then it is removed from the calculations. Assuming you have 2 other revolving already, and if all your other CCs have a balance at $0 the time when you pay off Orchard, then your score will not drop at all. In fact in 10 yrs, it could increase once Orchard falls off your CR because your avg. age may increase (assuming you keep your new TLs in check).

But before you close, you should PIF. They can send you to collections if your CC is closed w/ a balance. Check your CC agreement, but I don't think they have to honor a monthly payment plan.

Re: Am I better off closing the account???

Anonymous — Tue, 18 Nov 2008 15:48:22 GMT

Certainly try to avoid any lates on that account whether you dislike the company or not. Those can hurt your scores for YEARS, which is probably a lot longer than you will be angry at Orchard Bank! Late payments are so easily avoided, but not so easily outlasted.