Barclaycard Apple Rewards account CLOSED

[Boribori]

So.. my Barclaycard account got closed. I asked them to reinstate it and they won't. Just told me to apply again. I have a pretty big balance on it currently. Question is. What happens to my credit now with that account being closed? Even though it's closed and I can't use the card anymore I've still been making monthly payments on it so that they would maybe open it back up. No luck. Should I keep paying the monthly payments? Should I stop?

[Jnbmom]

Has something changed on your reports ? Not sure why they would just close your account?

Why would you stop paying, you do owe the balance correct?

[Anonymous]

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@Boribori wrote:
So.. my Barclaycard account got closed. I asked them to reinstate it and they won't. Just told me to apply again. I have a pretty big balance on it currently. Question is. What happens to my credit now with that account being closed? Even though it's closed and I can't use the card anymore I've still been making monthly payments on it so that they would maybe open it back up. No luck. Should I keep paying the monthly payments? Should I stop?

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I'm guessing Barclays closed your account because of the "pretty big balance" and probably equally large balances on other cards.  How long were you carrying a large balance with them, and were you paying more than the minimum due each month?

Unfortunately, your credit scores will drop because your credit reports will now show a "closed by grantor" account with a 0 credit limit but a large balance, so effectively your Barclaycard will show as maxxed out which incurs a FICO score penalty.  While you do have an obligation to pay off the account, if you choose not to do so the account will be charged off and you will lose about 90 points on your credit scores for the derogatory.

[UpperNwGuy]

When a bank closes a credit card like that, alarm bells should be sounding loudly in your head.  Time to take a look at your entire financial picture and figure out how to improve it.  Usually that involves tightening the belt and paying down all your outstanding balances.  And, yes, definitely pay off the Barclay Apple card.  It's money you owe.

[kiea]

Unfortunately, now the account will show the balance without the credit limit on your reports which will make your score drop & utilization go up. Continue making your payments and try to pay more than the minimum if you can. Whatever you do don't stop making your payments. If you do the account can go to collections.

[Anonymous]

It’s not necessarily true that the OP’s score will drop and that Barclays will show a $0 credit limit.  They may very well, like other creditors have done in the past, just note that the account is closed and continue to report his original limit and current balance.  

[Boribori]

Yeah, it's probably because my other high balances on the cards. I just didn't know if my credit score was already bad from them closing it and it wouldn't matter wether or not I paid off the balance or not. But if it'll get worse if I don't pay it then I will continue to pay it

[UpperNwGuy]

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@Boribori wrote:
Yeah, it's probably because my other high balances on the cards. I just didn't know if my credit score was already bad from them closing it and it wouldn't matter wether or not I paid off the balance or not. But if it'll get worse if I don't pay it then I will continue to pay it

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Pay it because it is the right thing to do, not because it will affect your credit score.  Do the right thing!

[Anonymous]

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@Boribori wrote:
Yeah, it's probably because my other high balances on the cards. I just didn't know if my credit score was already bad from them closing it and it wouldn't matter wether or not I paid off the balance or not. But if it'll get worse if I don't pay it then I will continue to pay it

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Have you looked at a recent credit report to see how they are reporting the account and whether it shows your original credit limit or $0?

[Boribori]

I have not no what would be the difference? Just wondering