Amazon Synchrony bank CLD

[HeavenOhio]

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@drboxing wrote:
I had JC Penney, Lowes (no balance), and a few others, synchrony bank canceled all of my card with them, some had high balances that I paid down. So I don't like dealing with them, don't need them, if I shop at JC Pennies or Lowes there are other cards I can use.

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If my accounts were cancelled, I'd hold the the merchant to be just as responsible as the bank. In short, I'd stop shopping there.

But knowing what i know about Synchrony from reading these forums, I'd avoid applying for their cards in the first place. That avoids having to make a decision about the merchant if something bad were to happen.

[drboxing]

I stopped shopping at there stores.

[Anonymous]

730 CK
28% util
Income over 100 k yr
Self employed business owner
0 lates
0 collections
1 public bs from 2008 satisifyed tax lein. About to fall off 10 year old.
was their when they gave me the limits.
14 Accounts all +
7 Hard pulls 5 over a year ago.
Only new thing Reporting is a virgin Atlantic
B Of A card I got to rack up the miles promotion.
Have never payed any bill even 1 day late since I started my rebuild 2 years ago.
Honestly at a complete loss as I was looking forward to a home refi in the fall once util came down some more. Currently pay 7% on a hard money loan.

Blown away as their really was no reason, I respect my credit and have worked my arse off to rebuild it after my divorce in 2012.

I think I am going to PIF the walmart as planned. only reason it had a balance was just splurged on groceries, kids school stuff & new office everything with a 0 intrest promotion. was going to pay it off next 3 month any ways.

[Anonymous]

I can pull a 10k out of savings & pay the lowes down to about 35 %. Anyone think they will chase me down if I pay off a chunck. I would be pissed if i clear out the bulk of my savings
just to get another CLD

[drboxing]

I paid down large balances, cards were zero balance and synchrony closed them

[Anonymous]

one other thing changed, i just reviewed my credit history and i carried 2k total last month on my chase cards i normally PIF. 2 monts ago I broke my foot & tore my rotator cuff and did not meet my normal $$.. I chose to carry a small balance ( no more than 20%) on the 2 rather than dig into my savings. Just payed the min on each.

[Anonymous]

Have you pulled your credit report to verify that you don't have any recent negative items reported?  I say reported, because even though you know that you haven't been late or anything, that doesn't mean a negative item wasn't incorrectly reported.

[UncleB]

Good stuff here so far; I just want to add that it's not always a given that Synchrony will eventually close an account that's being balance chased.

In my case they balance chased my Lowe's down to under $500, but then they stopped.  I intended to close the card but I ended up forgetting about it, not even using it at all for a few years.  I eventually started using it again (and PIF)... fast-forward and that card is now my oldest credit account and has a $20k credit line.

In my case the Lowe's card had (and still has) a perfect payment history; my balance chasing years ago was prompted by other issues on my credit report. That said, if someone has balance chasing prompted by late payments with Synchrony (or bounced payments) I wouldn't be surprised for the balance chasing to end with account closure.

I'm not saying everybody will have my outcome, just that it's not a given that Synchrony balance chasing always ends up with a closed account - it can be YMMV.

[AverageJoesCredit]

Another headscratcher to be honest. The 100k income is tge only thing thats stands out to me in relation to what weve seen on many blue envelope situations. Maybe being self employed bo and the fact they saw a recent spike in overall utilization not only in their cards but the Chase cards, triggered the computers. We know funny things are happening in the credit world lately l and things like break out fraud and other things are being put in alerts on the computer algorhythms.

[K-in-Boston]

I am a little late to the party, but just wanted to comment on the closed account and utilization discussion.  There is a great thread on closed cards.  If I may copy and paste:

- If a closed CC account with a balance continues to report the original credit limit, then both the balance and the CL of the closed account will be used in the utilization calculations.

- If a closed CC account is reporting a zero CL, even if there is a balance on the CC, the card will not be included in the calculations.

- If a closed CC account is reporting a non-zero CL but has a zero balance, the card will not be included in the calculations.

- If a closed account reports a CL that is equal to the balance (balance chasing), then this will be included in the calculations.  This is the worst-case scenario with regard to utilization.

Fortunately Synchrony cards do seem to work like the first group.  To answer the earlier question, yes many other lenders also treat their cards this way.  The 2nd and 3rd groups can have detrimental effects on scores if you have a relatively low balance on a high credit line card and it causes your overall utilization to spike - otherwise no difference or it could actually help if the card had high utilization previously.  And yes, #4 is certainly a worst-case since you'd have a maxed card until it's paid off and then it would move to #3.