@Jon85 wrote:Hi all! Capital One closed both my Venture Card and Quick Silver card with balances of $28,000 and $14,000, respectively.
My question is - will this negatively effect my credit acore? The balances are now zero.
some context: some things I have been on a waiting list for since 2022 finally came through, two watches and I also booked a vacation.
I charged my two watches on my Quicksilver which came to $28,000 and my vacation was $13,800 which I charged to Venture for the travel points. My point in doing this was to get the points and the cash back for each card.
QS I had for 10 years, Venture for 4 years. I always paid in full on each. After I charged everything within a week, I saw on my app my Cap1 cards were restricted. Two days later I got document saying "we closed your account because this wasn't used for personal, household or family usage" **bleep**? I literally bought myself two watches for myself and a booked a vacation through expedia. And I consistently used both cards all the time for shopping, groceries, uber, everything. I don't own a business or anything so they can't say it was business expenses.
ANYWAY - same day they closed the accounts, I paid off both accounts in full.
I don't care about them closing it, I can just use my Amex and other cards. My concern is because they closed it is it going to lower my credit score since they closed it with balances so now when I paid in full and they update, is that going to even matter?
nothing else changed in my financial life except those big purchases - credit report stayed the same, income same, etc. only thing that was added was a new auto loan two months ago which happens every two years because I lease.
any insight please in regard to if I should be concerned about CS dropping? All my other cards are always paid in full, so zero debt except for like $120 that I kept on my amex for statement closure so it looks like I have some useage. Thanks in advance as always!!!
It just depends whether they reported the balance. If they reported the balances your score will take a temporary dip until the next month.
I'd contact the Executive Office and have them review this. It seems like there was an improper judgement call made and they might be able to reverse the decision.
@CreditCuriosity wrote:Strange indeed. Cap1 should of been salivating thinking you might not be a PIF type of person and getting that interest. Cap1 usually isn't known to do this type of AA unless as in your case expenses on personal cards are being used for business or person expenses on business cards are being used for personal expenses. Have seen this a few times. Not sure what caused them to get spooked other than likely out of the ordinary charge amount. I am guessing the two watches were what did it as well was that treated as one charged for 28k or two seperate 14k charges? Sounds like you just got a bit of bad luck, but other lenders such as AMEX likely won't blink an eye at this type of transaction as your income and what you buy appears to support such transactions. Where Amex can care less if you charge business to personal and personal to business cards as long as they get paid. Interesting.
^^^This is what I was thinking. Cap One usually LOVES huge spend and PIF, and is known to auto CLI for doing this. IIRC there was someone on here a few years back with something like a Venture One or some mid-tier Cap One card that had a $40K limit was was maxing the thing out 2 or 3 times a MONTH using it for some type of business (This person was looking for suggestions to get a higher limit card.) Cap One didn't seem phased as he had been doing it for a while.
What were your limits on these cards respectively? I can see the "breakout" theory holding water if you hadn't been using these cards and all of a sudden you throw huge amounts on both cards at the same time. Do you have any other out of the ordinary balances reporting on your credit reports that may have added to Cap Ones twitchiness? This just seems so out of the ordinary for Cap One that it feels like there's something else to the story you may not realize is coming into play. Either way, it's Cap One's loss.
And yes, Amex (and most every other lender I can think of), would be very welcoming of that type of spend and PIF. Only ones I can think to stay away from would be like Synchrony and Barclays. Calling ahead and letting the lender know to expect large purchases tends to help put them at ease as well.
@Jon85 wrote:
@Anonymous wrote:
@Rogue46 wrote:Could be because they saw the 2 watch purchases and got spooked thinking you are on a breakout? That's the only thing I can think of why they shut you down. You will probably see a score dip but that should recover and as mentioned above the tradelines will stay on your report for up to 10 years
No, I would guess that the assumption (perhaps based on the merchant details) was that these were high priced jewelry type items intended for resale, so not household use. The closure of the venture would have just been caught up in it. But a lot depends on previous usage, were both these charges way out of normal range?
Hi all!
Thank you to each of you for all of your detailed responses and concerns. I appreciate it so much. It was very odd to me too because the purchases definitely are not something out of the ordinary for me- I've put through 100K + per year on my QS card for the last few years as an example. It was always for personal usage and luxury, shopping and vacations.
A member mentioned that I should reach out to someone in the executive office but honestly it's so insulting that they did this I would rather just charge through my other cards.
And the place I bought my watches is the same Rolex dealer I've shopped with for the last 5 years using the same card 😂😂😂
oh well! Amex get ready for some more usage....
You now have a good excuse to upgrade your general spend to a 2% card as well! There's plenty out there like...
https://www.fnbo.com/personal-banking/credit-cards/evergreen
