Adverse Action and Timeframe

[JSS3]

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@Anonymous wrote:

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@JSS3 wrote:

When a bank(ie Bank of America) closes your account because of high utilization, drop in Fico, and credit seeking behavior, how long does it take to get another card from them? Does it come down to you cleaning up your reports and then giving it a year or 2 of no credit seeking? Or will you be blacklisted until they deem fit; citing, "Previous unsatisfactory relationship"?

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But did you have a previous unsatisfactory relationship? Because high utilization, drop in FICO, and credit seeking are all things banks don't like and might use to reduce limits, balance chase you or other AA, or even closing but "previous unsatisfactory relationship" implies you did something directly to them. So while you were having credit trouble with other banks what was happening directly WITH and TO Bank of America? Lates? Spending over your limit? Returned payments? Those are the type of things that could put you in the time out box for few years.

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I've seen this term thrown around when AA was taken with others. I assumed that when they closed my accounts due to ONLY the aforementioned(meaning; I never had a bankruptcy, collection, etc. All accounts are paid on time and current. Never a late in all my credit life). I thought because they closed me out, they were unsatisfied with my profile, and they would cite that in the future. "Unsatisfactory" to me meant they didn't like how I do things and didn't think I was profitable(potentially a risk because of accruing debt in my past and credit seeking). Since banks have a long memory, I thought they'd store this incident internally and use that against me as to why I'm not an appealing customer(in the future).

[GApeachy]

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@JSS3 wrote:

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-Had two accounts with BofA with combined limit of 44,000. One card is now closed. Had a zero balance and 34,000 limit. My second BoA card had 45% utilization then they balance chased me so now it's at 90% with only 200 available.

Okay, I just saw this.  Was the one card with 34k limit closed by them?  Why was it closed and how long before the balance chasing? eta: on the other card, how long before the balance chasing

[JSS3]

I think I used the wrong terminology to classify my situation. I thought "unsatisfactory" was under the umbrella of ANY reason for THEM taking AA on you. I see now where the confusion for some comes in. My apologies.

No, no other bank has taken AA with me, ever. Unless "AA" is closing my account for inactivity. All my other 40+ accounts(since I've started) are in good standing and current. The only closed ones are ones I closed(after combining limits) or ones that were handed over to another company(ie Synchrony Walmart going to Cap1).

[GApeachy]

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@JSS3 wrote:

Unless "AA" is closing my account for inactivity. 

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Did those two accts closures cause you to lose sizable utilization padding? (Huntington Bank)  I can't remember if you said those closed shortly before the BoA AA or not.

[JSS3]

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@GApeachy wrote:

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@JSS3 wrote:

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-Had two accounts with BofA with combined limit of 44,000. One card is now closed. Had a zero balance and 34,000 limit. My second BoA card had 45% utilization then they balance chased me so now it's at 90% with only 200 available.

Okay, I just saw this.  Was the one card with 34k limit closed by them?  Why was it closed and how long before the balance chasing? eta: on the other card, how long before the balance chasing

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I logged in on the 18th to make sure my statement had cut and both cards were there. I went to use the 34,000 card yesterday because you get 3% for online purchases and received an error message. When I logged into my BoA account, it was gone. It had a 0 balance. I would put about <100 on it a month. It was once my go-to Balance transfer card and my highest limit card in my portfolio. I then took a look at my only other BOA card. They cut that limit from 10,000 down to 4700. 200 more than what I owe. The funny thing is---before this happened, I was going to use part of my income tax to pay all but 1000 off on the card. I paid them 500 last month. 1000 the previous and around 200 or 300 a month all other times. 

I haven't gotten a letter yet but I can put 2 and 2 together to know what happened. I didn't even call them. 

[FinStar]

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@JSS3 wrote:

I think I used the wrong terminology to classify my situation. I thought "unsatisfactory" was under the umbrella of ANY reason for THEM taking AA on you. I see now where the confusion for some comes in. My apologies.

No, no other bank has taken AA with me, ever. Unless "AA" is closing my account for inactivity. All my other 40+ accounts(since I've started) are in good standing and current. The only closed ones are ones I closed(after combining limits) or ones that were handed over to another company(ie Synchrony Walmart going to Cap1).

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So, just to recap, based on what you mentioned about BoA specifically.  They [BoA] closed the $34,000 account (no balance) and, based on your current balance of ~$4,500 on the the second account, it's limit has been reduced due to adverse action from $10,000 to $5,000 and is currently being balance-chased', correct? 

[JSS3]

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@GApeachy wrote:

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@JSS3 wrote:

Unless "AA" is closing my account for inactivity. 

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Did those two accts closures cause you to lose sizable utilization padding? (Huntington Bank)  I can't remember if you said those closed shortly before the BoA AA or not.

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Nope. I had over 500,000 in credit. With 49,000 debt. Overall utilization 10%.

[FinStar]

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@JSS3 wrote:

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@GApeachy wrote:

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@JSS3 wrote:

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-Had two accounts with BofA with combined limit of 44,000. One card is now closed. Had a zero balance and 34,000 limit. My second BoA card had 45% utilization then they balance chased me so now it's at 90% with only 200 available.

Okay, I just saw this.  Was the one card with 34k limit closed by them?  Why was it closed and how long before the balance chasing? eta: on the other card, how long before the balance chasing

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I logged in on the 18th to make sure my statement had cut and both cards were there. I went to use the 34,000 card yesterday because you get 3% for online purchases and received an error message. When I logged into my BoA account, it was gone. It had a 0 balance. I would put about <100 on it a month. It was once my go-to Balance transfer card and my highest limit card in my portfolio. I then took a look at my only other BOA card. They cut that limit from 10,000 down to 4700. 200 more than what I owe. The funny thing is---before this happened, I was going to use part of my income tax to pay all but 1000 off on the card. I paid them 500 last month. 1000 the previous and around 200 or 300 a month all other times. 

I haven't gotten a letter yet but I can put 2 and 2 together to know what happened. I didn't even call them. 

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I'm fairly certain that a letter is on its way to explain the adverse actions, since the $0 balance account was closed and your 2nd card has been significantly reduced.   I'm assuming that the 2nd account is still open, correct? 

[FinStar]

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@JSS3 wrote:

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@FinStar wrote:
Blacklisted until they deem fit. No exact timeframe on when they'll let the "past unsatisfactory relationship" not be much of a factor.

A variety of individuals have not been able to get back after 10+ years.

When did they close your accounts OP, and how many with BoA?

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No collections. Nor negatives.

-My utilization on two NON BoA accounts were 80 to 90%

-Other accounts had 40-50%(around 4 or 5). 

-Had two accounts with BofA with combined limit of 44,000. One card is now closed. Had a zero balance and 34,000 limit. My second BoA card had 45% utilization then they balance chased me so now it's at 90% with only 200 available.

-Most accounts with 0 balances

-49,000 total debt.(I am going to tackle a good amount this year). 

-10% overall utilization

-About 4 new accounts in the last 6 months. The two newest just hit my credit report. One being maxxed out when it hit. Maxxed out as in 1600/2000.

-BoA fico = 705. 

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While overall utilization may seem like it 'distributes' balances in a certain way that may not raise eyebrows, I believe you stated above that you had several accounts above 40%, correct?  For how long have you been carrying those balances?  Where you only making the minimum (or slightly over minimum) as far as payments? 

[JSS3]

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@FinStar wrote:

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@JSS3 wrote:

I think I used the wrong terminology to classify my situation. I thought "unsatisfactory" was under the umbrella of ANY reason for THEM taking AA on you. I see now where the confusion for some comes in. My apologies.

No, no other bank has taken AA with me, ever. Unless "AA" is closing my account for inactivity. All my other 40+ accounts(since I've started) are in good standing and current. The only closed ones are ones I closed(after combining limits) or ones that were handed over to another company(ie Synchrony Walmart going to Cap1).

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So, just to recap, based on what you mentioned about BoA specifically.  They [BoA] closed the $34,000 account (no balance) and, based on your current balance of ~$4,500 on the the second account, it's limit has been reduced due to adverse action from $10,000 to $5,000 and is currently being balance-chased', correct? 

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Yes.

I have never been late, no collections, negatives, etc. Never even had a 1 day late as I always pay way before due date. Way above the minimum. Screenshot attached says 5,000 on the one card, but it's because I have to wait 7 days for Credit Karma to update. I paid them 500. So now it's 4,500/4,700.