topic Adverse Action Creditors in Rebuilding Your Credit

Adverse Action Creditors

hhhhhhh — Wed, 29 Jul 2026 16:40:09 GMT

Just wanted to see if I could find some information if any certain lenders take adverse action on accounts that go delinquent with other banks? Right now I am being balance chased by Citi which I'm current on but I'm more concerned with a list of Creidt Unions that would close accounts or reduce lines in response to other accounts going late? PenFed, DCU, Baxter or Jovia on this list? I feel like the ones that run monthly soft pulls would be more of a higher risk since they would see the declining score? And just for reference I would maintain good standing on the list above its I'm trying to keep certain accounts current as those I would like to keep.
Thank you

Re: Adverse Action Creditors

FicoMike0 — Wed, 29 Jul 2026 23:13:54 GMT

Huh?

Are you late on any accounts?

What's your utilization?

Re: Adverse Action Creditors

GZG — Wed, 29 Jul 2026 23:58:03 GMT

@hhhhhhh wrote:
Just wanted to see if I could find some information if any certain lenders take adverse action on accounts that go delinquent with other banks? Right now I am being balance chased by Citi which I'm current on but I'm more concerned with a list of Creidt Unions that would close accounts or reduce lines in response to other accounts going late? PenFed, DCU, Baxter or Jovia on this list? I feel like the ones that run monthly soft pulls would be more of a higher risk since they would see the declining score? And just for reference I would maintain good standing on the list above its I'm trying to keep certain accounts current as those I would like to keep.
Thank you

every FI runs a monthly soft pull

the best way to avoid AA is to BT that balance elsewhere where you're not getting balance chased (other than just paying it off or getting a PL and paying it off, ofc)

Re: Adverse Action Creditors

hhhhhhh — Thu, 30 Jul 2026 12:34:10 GMT

Sorry for not being clear enough.
-I'm current on about half my accounts

- My plan is to offer settlements on the ones I have no choice but to default on

- Utilization is sky high around 120% due to some closed accounts still being paid down that I'm also keeping as they are on a low minimum hardship plan

-The ultimate goal is to settle the defaulted ones but keep a few tradelines with positive history for the rebuild

Re: Adverse Action Creditors

Seatac — Tue, 04 Aug 2026 19:54:13 GMT

as a general statement you can count on every credit union denying you credit and possibly membership if you have a lot of bad debt elsewhere. CU's focus on member/owner needs and safety and as such are risk averse institutions.

you say:

Re: Adverse Action Creditors

Sorry for not being clear enough.
-I'm current on about half my accounts

- My plan is to offer settlements on the ones I have no choice but to default on

- Utilization is sky high around 120% due to some closed accounts still being paid down that I'm also keeping as they are on a low minimum hardship plan

-The ultimate goal is to settle the defaulted ones but keep a few tradelines with positive history for the rebuild

this sounds like you don't believe you can pay down these debts or pay off what you owe, It also reads like you have been struggling under this weight for a while already.

without knowing your numbers, balances, how long you have been not paying them , i would ask you to do a personal analysis and really look at the benefits of bankruptcy. Check both 7 and 13. I am not a bankruptcy attorney or anything like that, but the reality is a bankruptcy stays on you report for 7 years BUT the day you accounts are discharged you can get new credit. The key is to not burn any of the major card systems like Amex , Chase, Discover or Cap 1 if you can help it. If when you go bankrupt you don't burn them you can usually get back in relatively quickly. if you burn them forget about them for a decade or forever.

Your plan however can hang on your credit much longer than the 7 years.

I suspect most people would prefer getting the pain over quicker, but that is for you to decide.

it is unclear if income is the problem or just not paying. If income is the problem then please please please look at getting a second job. Everything from Door Dash to online work checking AI results can bring in an extra couple thousands a month depending on you motivation.

Do not tell me it is impossible unless you are in a full body cast, iron lung or are just a head in a jar. You can do whatever you are motivated to do. if your response is I work hard and need my rest and personal time or I have kids so I can't. Then i just don't care because those "reasons" are just excuses to be a victim. you can do whatever you prioritize doing. you can find the legal solutions and taking on extra work is that most adult thing to do.