BOA Cash Rewards - Cancelled without Notification

[Anonymous]

Hello All,

I have had a BOA Cash Rewards CC since 2012 and although I've carried a high balance for quite a while, I just recently paid off the entire balance of $1400+ on 01/15.

I tried to use the card today but it did not work. I called card services and was basically told it was cancelled based on a letter sent from TransUnion and that I would receive a letter in the mail.  Cocidentially, the effective date of the cancellation was the same date that my payment was applied. 

I've already received a notification from myFico stating the following change was detected on Experian:

BANK OF AMERICA
AMOUNT
$0.00
STATUS
Account Closed By Credit Grantor

Sad that I'm finding out sooner from my credit report than BOA can even notify me. No calls, no emails, nothing.

Anyone ever hear of this? My credit score right now is ~580 but paying off that card was a big step for making improvements. None of my credit cards have a missed payment. Now, I've lost the available credit and instead of my $1400+ payment helping,the account being closed is hurting me in the short term.

[longtimelurker]

---

@Anonymous wrote:

Hello All,

I have had a BOA Cash Rewards CC since 2012 and although I've carried a high balance for quite a while, I just recently paid off the entire balance of $1400+ on 01/15.

I tried to use the card today but it did not work. I called card services and was basically told it was cancelled based on a letter sent from TransUnion and that I would receive a letter in the mail.  Cocidentially, the effective date of the cancellation was the same date that my payment was applied. 

I've already received a notification from myFico stating the following change was detected on Experian:

BANK OF AMERICA
AMOUNT
$0.00
STATUS
Account Closed By Credit Grantor

Sad that I'm finding out sooner from my credit report than BOA can even notify me. No calls, no emails, nothing.

Anyone ever hear of this? My credit score right now is ~580 but paying off that card was a big step for making improvements. None of my credit cards have a missed payment. Now, I've lost the available credit and instead of my $1400+ payment helping,the account being closed is hurting me in the short term.

---

In some cases recently, this has happened due a security breach, and the bank just sends a new card.  But I would expect in this case the CSR would have told you.   So, it might be real.   This happens when the bank is uneasy about your finances and the balance on the card.   Sometimes they balance chase, reducing the CL to just above the amount owed, but also wait until the account is paid off then just close it.   This makes people annoyed as they feel that they have punished for doing a good thing (paying it off), but from the bank's view, it avoids the card holder establishing another large balance.

[Anonymous]

I also updated my contact information to try to get BOA to report the recent payment faster (which I read online could work)

Maybe this had something to do with BOA pulling my credit and deciding to cancel me? Damn. I've never missed a payment on any of my cards (my report reflects this) and I even used the card a few weeks ago.

Seems like this all happened very quickly.

[Anonymous]

What's your overall debt to credit limit on other cards?

[Anonymous]

62% overall ($2200/$3500) , not including the BOA card in question. If the BOA card had been kept open, I'd be at 44% overall right now ($2200/$5000).

I have two cards at 80% ($400/$500)  and 89% ($1780/$2000)  and two cards at less than 5% ($500 limit ea) that were also recently paid off. 

I'm making a very strong effort to pay everything off lately which is why this is especially disappointing. 

[Anonymous]

In the credit world, as in life, sometimes you win some and sometimes you lose.

Keep paying that balance off. You scores will improve when your utilization drops. When you get to 1% utilization, apply for a credit union cc.

[Anonymous]

Thanks. Ultimately my goal is to obtain an auto loan at a reasonable rate.

How long will it take for my credit score to improve once all balances are brought within 1% of total credit? 

[chwebb1]

---

@Anonymous wrote:

Thanks. Ultimately my goal is to obtain an auto loan at a reasonable rate.

How long will it take for my credit score to improve once all balances are brought within 1% of total credit? 

---

It should be within the month that you pay them all off (as soon as everyone reports the new balances).

[Anonymous]

Credit unions love auto loans. They will throw you a credit card along with your auto loan with one credit pull.

[Anonymous]

---

@Anonymous wrote:
Credit unions love auto loans. They will throw you a credit card along with your auto loan with one credit pull.

---

Excellent. Although I already made the mistake of blowing up my inquiries several months ago, which led me to the realization that I need to focus on paying off all of my debt first. It's gonna be quite some time before all of them are removed..