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Account Closures

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Anonymous
Not applicable

Re: Account Closures

The economy is not "great". The stock market is raging, but that is the stock market, not the economy. Just because corporations are buying back stock and the 1% are getting richer by the second does not mean that effects the rest of us. If you are paying attention, utilities are going up, food prices are increasing and tariffs are causing a lot of retail increases across the board.  Wages are not increasing commensurate with the cost of living. Banks are tightening because default rates are increasing.

 

Message 31 of 63
Anonymous
Not applicable

Re: Account Closures


@simplynoir wrote:

@Anonymous wrote:

I agree, but why all of a sudden? It was fine to do so in 2019, but not now? Change of strategy I think. Scale back rewards cards or free up CLs for business/consumer loans expected in 2020 and beyond? That's my guess. Only a guess.


If there's something that has been repeated here is that this forum is not representative of the public in general. We are a very niche group in the credit community so of course more stringent action would take place with credit profiles like ours. The normal person isn't going to carry a lot of cards some that don't even see any use because why deal with that headache. Maybe if they're playing the BT game but other than that it's normal to see someone using their CSR or AMEX Platinum for everything even if we would scoff and ridicule someone here for doing that

 

Another thing is some of the closures reported have had good reasons for doing so once the details are shared. And along that note there are some who just say "omg they closed my accounts and I don't know why!!!" without sharing the whole story. To that point we are depending on datapoints that not everyone is going to give and inflate the situation. What I mean by that is a negative response garners way more attention than something that is SOP for everyone else. One closure must suddenly mean there will a hundred more coming because of this one person or collection of people saying so. Imagine someone making a post saying "hey my accounts are still open why is that?" That would be asinine honestly


Agreed. But there are a lot of credit card junkies out there that don't visit this site. But we don't have their DPs either. 

 

And I agree, a lot do not disclose everything when they say their account was closed for "no reason". But a lot do explain what they've done or not done. We have to take that at face value. 

 

Also these are happening at the same time. I doubt that 3 posters did something negative with their accounts at the same time and had AA together. 

 

And this brings up a point I've made repeatedly here, that I don't push my issuers hard for more CLIs, lower rates, SUB chasing, a bunch of new accounts, or using the card only for high category spend. I believe it hurts the cardholder over the long term.

Message 32 of 63
simplynoir
Community Leader
Mega Contributor

Re: Account Closures


@Anonymous wrote:

And this brings up a point I've made repeatedly here, that I don't push my issuers hard for more CLIs, lower rates, SUB chasing, a bunch of new accounts, or using the card only for high category spend. I believe it hurts the cardholder over the long term.


If someone is purposely not trying to get the most out of their credit cards in a legitimate way then the banks win. Why should someone limit themselves that way to appease a bank? That blows my mind reading that

Message 33 of 63
Anonymous
Not applicable

Re: Account Closures


@simplynoir wrote:

@Anonymous wrote:

And this brings up a point I've made repeatedly here, that I don't push my issuers hard for more CLIs, lower rates, SUB chasing, a bunch of new accounts, or using the card only for high category spend. I believe it hurts the cardholder over the long term.


If someone is purposely not trying to get the most out of their credit cards in a legitimate way then the banks win. Why should someone limit themselves that way to appease a bank? That blows my mind reading that


The issuers allow you to do things. It doesn't mean they like it. They are in the business to make money. If you squeeze them from every angle, you are less profitable. If you are less profitable, you have greater exposure to some kind of AA. If you are more risky, you also have greater exposure to AA.

Message 34 of 63
Anonymous
Not applicable

Re: Account Closures

I started my credit build/rebuild back in 2006 right around the time credit card companies were handing out cards to just about anyone with a pulse. By 2008, I had amassed 30+ accounts and 100k in total credit and then Amex hit me with closure. On all the credit boards, everyone was getting hit with Amex closures but we all had something in common, we were credit seekers. We had way more credit than our salaries could bear. I only made 30k at that time and there was no way I could have paid the minimum payments if I maxed out my cards. It took quite a few phones calls to get a straight answer out of Amex over the closure but I finally got a supervisor who was honest and told me I was considered a risk because I was using 2/3 of the credit limit each month and even though I was pif, they just wouldn't risk it even if it was a $1000 limit. Yes, I was a risk with just a $1000 limit but it made me step back, close some cards and just sit out credit seeking for the last few years. 

Message 35 of 63
simplynoir
Community Leader
Mega Contributor

Re: Account Closures


@Anonymous wrote:

@simplynoir wrote:

@Anonymous wrote:

And this brings up a point I've made repeatedly here, that I don't push my issuers hard for more CLIs, lower rates, SUB chasing, a bunch of new accounts, or using the card only for high category spend. I believe it hurts the cardholder over the long term.


If someone is purposely not trying to get the most out of their credit cards in a legitimate way then the banks win. Why should someone limit themselves that way to appease a bank? That blows my mind reading that


The issuers allow you to do things. It doesn't mean they like it. They are in the business to make money. If you squeeze them from every angle, you are less profitable. If you are less profitable, you have greater exposure to some kind of AA. If you are more risky, you also have greater exposure to AA.


By that logic AMEX and Chase must hate me a lot. Just as a few examples I'm going to reach the grocery cap on AMEX Gold card organically for foreseeable future since I'm supporting two households and on the Chase side me and fiancee have two CIP cards where we basically reach the cap for 3X because of advertising costs

 

I should be posting a closure thread any day now about that 😐

Message 36 of 63
Anonymous
Not applicable

Re: Account Closures


@Anonymous wrote:

I started my credit build/rebuild back in 2006 right around the time credit card companies were handing out cards to just about anyone with a pulse. By 2008, I had amassed 30+ accounts and 100k in total credit and then Amex hit me with closure. On all the credit boards, everyone was getting hit with Amex closures but we all had something in common, we were credit seekers. We had way more credit than our salaries could bear. I only made 30k at that time and there was no way I could have paid the minimum payments if I maxed out my cards. It took quite a few phones calls to get a straight answer out of Amex over the closure but I finally got a supervisor who was honest and told me I was considered a risk because I was using 2/3 of the credit limit each month and even though I was pif, they just wouldn't risk it even if it was a $1000 limit. Yes, I was a risk with just a $1000 limit but it made me step back, close some cards and just sit out credit seeking for the last few years. 


Great point and that might have something to do with it. 

Message 37 of 63
Anonymous
Not applicable

Re: Account Closures

I have a baaaaad feeling. It's truly not a scientific theory or anything, but it's there.

 

My 401k returned 20% in 2019 which is bonkers. It may have been premature, but I went in a couple of weeks ago and went conservative with all of my allocations.

 

Things are feeling very 2005-2007 to me.

Message 38 of 63
Anonymous
Not applicable

Re: Account Closures


@simplynoir wrote:

@Anonymous wrote:

@simplynoir wrote:

@Anonymous wrote:

And this brings up a point I've made repeatedly here, that I don't push my issuers hard for more CLIs, lower rates, SUB chasing, a bunch of new accounts, or using the card only for high category spend. I believe it hurts the cardholder over the long term.


If someone is purposely not trying to get the most out of their credit cards in a legitimate way then the banks win. Why should someone limit themselves that way to appease a bank? That blows my mind reading that


The issuers allow you to do things. It doesn't mean they like it. They are in the business to make money. If you squeeze them from every angle, you are less profitable. If you are less profitable, you have greater exposure to some kind of AA. If you are more risky, you also have greater exposure to AA.


By that logic AMEX and Chase must hate me a lot. Just as a few examples I'm going to reach the grocery cap on AMEX Gold card organically for foreseeable future since I'm supporting two households and on the Chase side me and fiancee have two CIP cards where we basically reach the cap for 3X because of advertising costs

 

I should be posting a closure thread any day now about that 😐


I'm tempted to call Chase after the email I got from them: Well done, you've earned points to the max. Congratulations, you've earned 7,500 bonus category points last quarter. You're a points pro.

 

I want to ask them if its so great, why don't I focus hard on doing that every quarter, and spending only on the 5% categories? They would love me even more, right? I can't see them making money off of me if they give me 5% cash back while collecting 2-3% from merchants.

 

If it were so profitable, there would be no caps.

Message 39 of 63
Anonymous
Not applicable

Re: Account Closures


@Anonymous wrote:

@simplynoir wrote:

@Anonymous wrote:

I agree, but why all of a sudden? It was fine to do so in 2019, but not now? Change of strategy I think. Scale back rewards cards or free up CLs for business/consumer loans expected in 2020 and beyond? That's my guess. Only a guess.


If there's something that has been repeated here is that this forum is not representative of the public in general. We are a very niche group in the credit community so of course more stringent action would take place with credit profiles like ours. The normal person isn't going to carry a lot of cards some that don't even see any use because why deal with that headache. Maybe if they're playing the BT game but other than that it's normal to see someone using their CSR or AMEX Platinum for everything even if we would scoff and ridicule someone here for doing that

 

Another thing is some of the closures reported have had good reasons for doing so once the details are shared. And along that note there are some who just say "omg they closed my accounts and I don't know why!!!" without sharing the whole story. To that point we are depending on datapoints that not everyone is going to give and inflate the situation. What I mean by that is a negative response garners way more attention than something that is SOP for everyone else. One closure must suddenly mean there will a hundred more coming because of this one person or collection of people saying so. Imagine someone making a post saying "hey my accounts are still open why is that?" That would be asinine honestly


Agreed. But there are a lot of credit card junkies out there that don't visit this site. But we don't have their DPs either. 

 

And I agree, a lot do not disclose everything when they say their account was closed for "no reason". But a lot do explain what they've done or not done. We have to take that at face value. 

 

Also these are happening at the same time. I doubt that 3 posters did something negative with their accounts at the same time and had AA together. 

 

And this brings up a point I've made repeatedly here, that I don't push my issuers hard for more CLIs, lower rates, SUB chasing, a bunch of new accounts, or using the card only for high category spend. I believe it hurts the cardholder over the long term.


I am curious what they ratio of lurkers to posters is?  

If it is anything less than a thousand or more, than traffic here is a tiny, tiny percent of the number of U.S. households.

Message 40 of 63
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