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3 Comenity Bank Store Cards Closed with 3 days of opening???

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Established Member

3 Comenity Bank Store Cards Closed with 3 days of opening???

Hi all!!

 

Long time comenity bank customer here, few accounts open, low balance, paid on time. Perfect history. Never been late on any account ever, no negatives on any account. 

 

Well I opened three comenity cards at once ( I understand that can be risky)

-Ulta

- Overstock

- Kay

 

Low and behold they are closed three days after opening the account. I go ahead and call ulta first, and they tell me because of "inquiries". Ok well, why approve and then deny? Why close accounts on a perfect customer? They also they tell me to just go ahead and reapply in 30 days, that there is nothing they can do to reverse it. I tell the account manager, Well no, it will be denied due to inquiries. 

 

Im shocked a bank would do this to a long time customer, but my question is, should I cease business with comenity? Is it worth it to keep the others open if they just close accounts? 

Message 1 of 35
34 REPLIES 34
Mega Contributor

Re: 3 Comenity Bank Store Cards Closed with 3 days of opening???


@cheezit99 wrote:

Hi all!!

 

Long time comenity bank customer here, few accounts open, low balance, paid on time. Perfect history. Never been late on any account ever, no negatives on any account. 

 

Well I opened three comenity cards at once ( I understand that can be risky)

-Ulta

- Overstock

- Kay

 

Low and behold they are closed three days after opening the account. I go ahead and call ulta first, and they tell me because of "inquiries". Ok well, why approve and then deny? Why close accounts on a perfect customer? They also they tell me to just go ahead and reapply in 30 days, that there is nothing they can do to reverse it. I tell the account manager, Well no, it will be denied due to inquiries. 

 

Im shocked a bank would do this to a long time customer, but my question is, should I cease business with comenity? Is it worth it to keep the others open if they just close accounts? 


While app sprees still have supporters here, it can be risky, as it looks like a sudden attempt to get new credit, which can be a sign of financial distress.   And financial distress can happen to previously great customers as well.  So it can raise flags with any issuer.

 

As for why issue then close, that unfortunately seems to happen with many issuers as well.   My understanding is that risk management/security etc review flagged accounts after automated processes may have approved.   Not ideal, but a fact of life!

Message 2 of 35
Moderator

Re: 3 Comenity Bank Store Cards Closed with 3 days of opening???

Unfortunately, it sounds like Comenity took adverse action which cannot be reversed OP.

There's plenty of threads on here that have confirmed those Comenity AA trends.

What is usually advisable, if choosing to go the Comenity route, is to select one CC product and space things out. Often times, if you apply for too many CCs with Comenity in a short period, then this is the end result. Periodic audit reviews will trigger SPs on EX and pull SageStream and if an excessive number of inquiries are seen... then *poof* accounts get closed.

Sorry to hear about this AA experience.
Message 3 of 35
Established Member

Re: 3 Comenity Bank Store Cards Closed with 3 days of opening???

Since they closed the new am i at risk for them closing my old Comenity accounts as well?
Message 4 of 35
Established Contributor

Re: 3 Comenity Bank Store Cards Closed with 3 days of opening???


@cheezit99 wrote:

Hi all!!

 

Long time comenity bank customer here, few accounts open, low balance, paid on time. Perfect history. Never been late on any account ever, no negatives on any account. 

 

Well I opened three comenity cards at once ( I understand that can be risky)

-Ulta

- Overstock

- Kay

 

Low and behold they are closed three days after opening the account. I go ahead and call ulta first, and they tell me because of "inquiries". Ok well, why approve and then deny? Why close accounts on a perfect customer? They also they tell me to just go ahead and reapply in 30 days, that there is nothing they can do to reverse it. I tell the account manager, Well no, it will be denied due to inquiries. 

 

Im shocked a bank would do this to a long time customer, but my question is, should I cease business with comenity? Is it worth it to keep the others open if they just close accounts? 


They are obviously closing your accounts for a reason - they want you to take your business elsewhere. I suggest you simply oblige them.

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Message 5 of 35
Moderator

Re: 3 Comenity Bank Store Cards Closed with 3 days of opening???


@cheezit99 wrote:
Since they closed the new am i at risk for them closing my old Comenity accounts as well?

Not necessarily OP.  If they left the other ones intact you should be fine.   Typically, whenever they perform these actions, they can either close the new ones, CLD or reduce exposure on existing ones, or close all of them in one sweep.  

 

It's worth noting that you can reapply for them in the future, but I would only pick one, then space them out every 6 months or so.  This would only apply if these stores and credit programs provide some value to you.   Otherwise, you can find alternatives. 

Message 6 of 35
Valued Contributor

Re: 3 Comenity Bank Store Cards Closed with 3 days of opening???

The above is why I've been cautious with Comenity and only have two cards issued by them (Overstock and BJ's My Perks Mastercard). I have a preapproval invitation for the Ikea Visa which is still good for a few more days but the above is one reason I'm likely going to pass (aside from that I'm not really interested in that particular card, of course, and would rather grow the BJ's MC since I use it fairly regularly, though mostly at BJ's itself - it's actually my go-to gas card).

Ch 7 BK discharged 11/28/14, credit rebuild well advanced. FICO:TU 680 FICO 8 (3/2/19) or 687 FICO 9/EX 694 FICO 8/EQ 685 FICO 8 or 674 FICO 9 (NFCU 3/3/19), VS 3.0 10/17/18: TU 702/EX 699/EQ 698. $92.9k revolving credit as of 1/31/19; $1K NFCU cashRewards Visa, $2K BJ's Perks MC, $5.1k Discover It #1, $6.5k Discover It #2 (new 3/12/18), $3.5k Petal Visa, $6k Paypal 2% CB MC, $6k Amazon Prime Store Card, $6k Walmart Store Card, $7k Apple FCU Platinum Visa, $7k Penfed Power Cash Rewards Visa, $11.8k Overstock Store Card, $15K Care Credit, $16K Cap One QS Rewards Visa Signature, $10k PenFed used car loan, $5k Navient student loan, $12.7k Lending Club loan. Gardening: 3 months, 19 days as of 1/31/19. 24 HP inqs total as of 10/12/18: 10 TU, 9 EQ, 5 EX (about half over 1 year old).
Message 7 of 35
Valued Member

Re: 3 Comenity Bank Store Cards Closed with 3 days of opening???

It looks like they saw it as a red flag and decided to close them all. Although it may look like a red flag I think they shouldn't do stuff like this and be more discipline during the application process. I would be pissed if I got 3 new open credit lines and the bank decides to close them all days after. I say call and file a complaint with a Supervisor and consider if you really want to do business with a company like that.

 

I am not a store card kind of guy in the first place but stories like this is the reason I will never apply for a Store Credit Card, Co Branded (VISA or MC) yes but not store specific credit cards. Mainly because of the way Comenity and Synchrony handle their portfolios. I feel that they are very picky because they are not huge banks but that's the way they do business and I will always decline a store card because of stories like this.

Message 8 of 35
Valued Member

Re: 3 Comenity Bank Store Cards Closed with 3 days of opening???


@joe8185 wrote:

The above is why I've been cautious with Comenity and only have two cards issued by them (Overstock and BJ's My Perks Mastercard). I have a preapproval invitation for the Ikea Visa which is still good for a few more days but the above is one reason I'm likely going to pass (aside from that I'm not really interested in that particular card, of course, and would rather grow the BJ's MC since I use it fairly regularly, though mostly at BJ's itself - it's actually my go-to gas card).


I agree, looks like we replied almost the same thing a minute apart lol.

Message 9 of 35
Community Leader
Mega Contributor

Re: 3 Comenity Bank Store Cards Closed with 3 days of opening???

This is not specific to just the store cards or Comenity,  some major lenders may do the same thing if there are too many apps in too short period of time. 

 

Message 10 of 35
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