COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

[Remedios]

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@barca wrote:

@RemediosI never implied people should have 3 cards.

I am just trying to preach moderation.

Whenever you "preach", you need to provide a reasonable argument on why your sermon is better than preacher's with 30 cards. I haven't seen that yet. 

I use to have about 15 cards before the financial crisis hit me in 2009/2010.

II am not sure I understand the significance of this statement. If you're trying to say you learned from it, that's great but... During that financial crisis or any other, balances on the cards are not a disease, they are a symptom.  due to the nature of my employment Tacoma I did not feel that crisis as acutely as so many others did, but I only had one card, and it was littered with lights because I was habitually out of stamps. It wasn't number of the cards that got me in trouble, not being responsible did. 

if you have 20 years credit history and have over 30 cards , perfectly fine.

Thats a generalization. What if I asked how many cards someone with 10 years history should have, or 5 years,  or 15. No one could answer that question because there isn't any answer, and there's no unifying theory 

but what should not be encouraged is someone having 4 year credit history and having 30 cards .

Most individuals do not have 30 cards. It might be common here but let's not lose sight of the fact that you are on the credit card forum. That type of deviation from the norm is to be expected. 

have you not noticed that most people that have their accounts closed is indirectly because they have large number of cards

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No, I cannot say that I have. There's some credit union which may deny application for having large amount of credit available, but just the fact someone has a lot of cards is not what leads to closures.

You are convoluting closures for lack of use, apps sprees, increases in utilization etc.

I have personally never witnessed a closure where " We are closing your card because you have other cards" 

It doesn't work like that. 

You are free to express your opinion, that's what this form is for. 

I am merely suggesting reading more and learning more before passing a final judgment on what's appropriate and what is not. 

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[barca]

@Remedios 

Sorry if I am not clear.

I am an Engineer and I don't look at things black and white.

I have 3 cards

I use to have 15 cards

those two statements implied I am not advocating for people to have 3 cards as you indicated in your earlier comment.

someone with 20 years of credit history and 30 cards

someone with 4 years of credit history and 30 cards

those two statemnets implied the more credit history you have the more it might make sense to have large number of cards

I am not specifically laying claims to the figures 

banks closing accounts due to lack of use or seekinig credit - is likely a consequence of having too many credits.

i.e. if you don't use a card for a year, most likely you have other CC you are using

i.e. seeking credit you are adding more CC to your portfolio.

While I agree moderation is subjective, don't take the word just out of context.

Moderation is key to anything in life.

I apologize, becuase some of you have lots of CC and might feel offended.

but my intention is not to agitate you but rather to pass my opinion for everyone's good financial health

[longtimelurker]

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@barca wrote:

While I agree moderation is subjective, don't take the word just out of context.

Moderation is key to anything in life.

I apologize, becuase some of you have lots of CC and might feel offended.

but my intention is not to agitate you but rather to pass my opinion for everyone's good financial health

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It's possible to disagree with you without being offended for that reason!  (I have a 37 year US credit history and about 20 cards, which is OK by your metric)

Issuers certainly can be adverse to credit seeking, which is usually many requests in a short period of time.  30 cards in 4 years might be a problem for that reason (a new card every two months or so) but not because of the number itself.

Saying moderation is the key to anything is, IMO, tautological at best and meaningless at worst.   Does your heart really need to beat EVERY day?  Be moderate, every other day will be fine!

[Remedios]

The only thing that offends me is overcooked cow. 

[Remedios]

On the more serious note, you cannot expect to post on a public forum and have your opinion go  unchallenged by everyone. 

 There's a very big difference between a vigorous discussion ( opposing views) and attacking someone personally. 

Forum is two way radio, not an announcement box. 

Some are going to agree with you, some are going to disagree. Some might read, and get giggles from it. 

[K-in-Boston]

@djmax041 Just to clarify, was your card closed after 12 months of inactivity or since your last charge?  I ask because you did mention that you typically used the card for 0% for 6 months promotions, and if the last activity was paying one of those off in October 2019 that means the last time the card was actually used to make a purchase was 21 or 22 months ago.  Payment activity counts as activity so if you last used it in October 2019 but made payments for 6 months, that means they actually closed it after 6 months of inactivity which does seem a bit short for a store card but would probably be a very valuable thing for others with that card to know if you don't mind clarifying.  Sorry about the closure.

[Anonymous]

I believe the bigger issue is that is it really okay for the big banks to do whatever they want without any input from the customer/consumer? This is why I hope that the laws are changed very very quickly to stop these big banks from unilateraly doing anything that they want. It's unethical and not okay. 

[K-in-Boston]

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@Anonymous wrote:

I believe the bigger issue is that is it really okay for the big banks to do whatever they want without any input from the customer/consumer? This is why I hope that the laws are changed very very quickly to stop these big banks from unilateraly doing anything that they want. It's unethical and not okay. 

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The customer/consumer agreed to the cardholder agreement which clearly states that the card can be closed at any time.  As already mentioned upthread, banks are required by law to hold funds in reserve to cover outstanding potential debt obligations.  If a cardholder is not using a credit line, it only makes sense that they close the line so that it allows them to offer those funds for lending to another customer or in the case of very large lines, potentially numerous other customers.  As with all of us, banks also have a finite amount of money they can place in reserves.  While no one likes accounts to be closed or to have credit line decreases, it's not a personal or unethical decision made by lenders.

[djmax041]

@K-in-Boston Yeah I made the purchase and spread it out over 6 months in 2019 

thats why I was puzzled but my credit score didnt get affected much

[dragontears]

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@Anonymous wrote:

I believe the bigger issue is that is it really okay for the big banks to do whatever they want without any input from the customer/consumer? This is why I hope that the laws are changed very very quickly to stop these big banks from unilateraly doing anything that they want. It's unethical and not okay. 

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I suppose you would like it for credit to become harder to obtain? Or maybe have a contract where the lender can't close/change your limit as long as you make $1,000/month in purchases? 

Face it, credit is fake money that doesn't even belong to you. Credit is not a right. Credit isn't your money to do with as you please.