Accounts Closed after Large Payment...

[KeithW]

I have noticed over the years that every so often, after making a large purchase with a CC, then making a large payment to pay it down a few months later, the account will be closed. To be clear, this is not common, but I have had this happen on 4 accounts in the past 10 years out of the 21 CC accounts I have. The accounts that do this are Synchrony and BoA. The funny part is that I will reapply and be given a new card with a larger credit limit and all my other cards with the same company stay open. I occasionally buy equipment for my business maxing out my cards and then pay it off over the next 3-6 months. CapOne, Chase, Discover and others never seem to mind.

[coldfusion]

It' a variation of being balance chased - issuers don't like it when a cardholder makes a large purchase and then proceeds to only makes mininum, or close to mininum, payments for several months in a row as they perceive it as an indicator the cardholder may be under financial duress or otherwise lining up to default on payment.    When you make a large payment your credit limit gets slashed to just above the current remaining balance on the card, and when the card is paid off the account is closed.   Synchrony is well-known for doing this.

[SouthJamaica]

---

@KeithW wrote:

I have noticed over the years that every so often, after making a large purchase with a CC, then making a large payment to pay it down a few months later, the account will be closed. To be clear, this is not common, but I have had this happen on 4 accounts in the past 10 years out of the 21 CC accounts I have. The accounts that do this are Synchrony and BoA. The funny part is that I will reapply and be given a new card with a larger credit limit and all my other cards with the same company stay open. I occasionally buy equipment for my business maxing out my cards and then pay it off over the next 3-6 months. CapOne, Chase, Discover and others never seem to mind.

---

Wow, 4 times seems like a lot. And your coming back to open new accounts with them is pretty forgiving of you.

Bank of America once closed all my accounts for no known reason, and I've seen in this forum that Synchrony has closed a lot of peoples' accounts for no known reason, so I don't find either of those institutions to be especially trustworthy.

[RonelTheGeek]

Yeah @KeithW  your definitely taking the risk with them again. Because what I've seen happened to others from account closure , mid cycle reporting, and CLD , I stopped using my 5 Synchrony accounts and will just let them close them out inactivity when they are ready.

You can do better with a lot of other banks out there.

[Trini88]

Are you doing that on regular cards or business cards???

[OmarGB9]

Something no one seems to have addressed: if the large purchases in question are for your business, why not put said purchases on an ACTUAL business card? Business cards are designed to handle large volume/high value transactions and are obviously expecting to see large payments as well.

Many times issuers frown upon using personal cards for business purposes.

[Anonymous]

---

@RonelTheGeek wrote:

Yeah @KeithW  your definitely taking the risk with them again. Because what I've seen happened to others from account closure , mid cycle reporting, and CLD , I stopped using my 5 Synchrony accounts and will just let them close them out inactivity when they are ready.

You can do better with a lot of other banks out there.

---

Certainly some Sync cards are easily replaceable with other banks, but not all.  The Rakuten card, for those collecting MRs, would be very hard to replace for example.  And others praise the Lowes card.

[KeithW]

---

@Trini88 wrote:

Are you doing that on regular cards or business cards???

---

Just regular personal cards.

[KeithW]

After closing they seem to be very anxious to get me back. Sending me new offers with 0% interest. So I will open the new account and take advantage of it.

[pete19103]

You may want to apply for and use a business card for those large purchases.  Or try to spread the charges out onto a few cards so no one card get anywhere close to being maxed out

---

@KeithW wrote:

I have noticed over the years that every so often, after making a large purchase with a CC, then making a large payment to pay it down a few months later, the account will be closed. To be clear, this is not common, but I have had this happen on 4 accounts in the past 10 years out of the 21 CC accounts I have. The accounts that do this are Synchrony and BoA. The funny part is that I will reapply and be given a new card with a larger credit limit and all my other cards with the same company stay open. I occasionally buy equipment for my business maxing out my cards and then pay it off over the next 3-6 months. CapOne, Chase, Discover and others never seem to mind.

---