cancel
Showing results for 
Search instead for 
Did you mean: 

Citi closed my double cash back account with no reason and is forfeiting my earned rewards

longtimelurker
Epic Contributor

Re: Citi closed my double cash back account with no reason and is forfeiting my earned rewards


@simplynoir wrote:

As an example I used to put charges for my wife's business on the AMEX Biz Plat card and was running a heavy six figure balance each month not including other category charges. Then I started looking into getting a little more return for the spend and went with the Bank of American Premium Rewards (2.625% all charges with Premium Honors) and US Bank Altitude Reserve (3% with mobile wallet). Both cards are seeing heavy activity where I ocassionally have to pay it off to free up more credit and these cards have pretty big lines. Did have US Bank and BofA call me to ask about the charges at one point. I was upfront and told them what exactly they were and that was that. No more calls and no declined transactions to date

 

I don't know what it was that OP encountered to get the closure but business charges on personal accounts is nothing to any bank really


Right, and despite many "must be the credit card" I still lean towards something more with banking.    Banks generally don't close deposit accounts (which is, in MyFico speak "FREE MONEY" to them, more or less) because of credit card misuse.   

 

My info might be out of date.  It appears since my time Citi and Chase will close bank accounts if they are sufficiently unhappy with credit card usage

Message 21 of 61
Remedios
Moderator

Re: Citi closed my double cash back account with no reason and is forfeiting my earned rewards

It has a lot to do with banking.

Citi is EWS participating lenders, and so are most other major lenders (including some large CUs like NFCU). 

 

So, they follow the money, and if it doesn't make sense, accounts get closed. Easier to deal with a consumer here and there than with regulatory bodies. 

 Also, nature and type of business can have a lot to do with bank deciding they want nothing to do with you. 

 

One of my friends was one of first medical marijuana dispensary owners in the state. 

Chase closed her personal accounts that predated business by a decade and had nothing to do with business maybe two weeks later. She never updated any information with them but she didn't have to, they already "knew" 

She opened BoA account, closed within 48 hrs. 

Can you guess what happened when she opened WF account...closed, this time even faster. 

Shes quite wealthy now, banks with small in-state only CU, and both parties are extremely happy. 

There was nothing shady or sketchy, just something banks didn't want to (potentially) deal with due to federal laws. 

So, you don't have to do something "wrong", it just needs to look like you might be 

 

 

 

70% Water, 29% Opinions, 1% Evil
Message 22 of 61
Credit12Fico
Established Contributor

Re: Citi closed my double cash back account with no reason and is forfeiting my earned rewards


@simplynoir wrote:

As an example I used to put charges for my wife's business on the AMEX Biz Plat card and was running a heavy six figure balance each month not including other category charges. Then I started looking into getting a little more return for the spend and went with the Bank of American Premium Rewards (2.625% all charges with Premium Honors) and US Bank Altitude Reserve (3% with mobile wallet). Both cards are seeing heavy activity where I ocassionally have to pay it off to free up more credit and these cards have pretty big lines. Did have US Bank and BofA call me to ask about the charges at one point. I was upfront and told them what exactly they were and that was that. No more calls and no declined transactions to date

 

I don't know what it was that OP encountered to get the closure but business charges on personal accounts is nothing to any bank really


That's US Bank and BOA. 

 

Citi is a bit different. Citi does not like you going over your credit limit in a statement period. They also don't like multiple payments. Both of those behaviours trip their systems for manual review of the account. 

Message 23 of 61
simplynoir
Community Leader
Mega Contributor

Re: Citi closed my double cash back account with no reason and is forfeiting my earned rewards


@Credit12Fico wrote:

@simplynoir wrote:

As an example I used to put charges for my wife's business on the AMEX Biz Plat card and was running a heavy six figure balance each month not including other category charges. Then I started looking into getting a little more return for the spend and went with the Bank of American Premium Rewards (2.625% all charges with Premium Honors) and US Bank Altitude Reserve (3% with mobile wallet). Both cards are seeing heavy activity where I ocassionally have to pay it off to free up more credit and these cards have pretty big lines. Did have US Bank and BofA call me to ask about the charges at one point. I was upfront and told them what exactly they were and that was that. No more calls and no declined transactions to date

 

I don't know what it was that OP encountered to get the closure but business charges on personal accounts is nothing to any bank really


That's US Bank and BOA. 

 

Citi is a bit different. Citi does not like you going over your credit limit in a statement period. They also don't like multiple payments. Both of those behaviours trip their systems for manual review of the account. 


I know a few people on Flyertalk who put some good money on their DC card and they haven't had a closed card/account yet. I am just saying the nature of the transactions or something else triggered it, not necessairly the business spend itself

Message 24 of 61
imaximous
Valued Contributor

Re: Citi closed my double cash back account with no reason and is forfeiting my earned rewards


@TRC_WA wrote:

@imaximous wrote:

Think of the thousands if not millions of people who use their CSRs, Amex Plats, etc. to pay for their travel and other business expenses and get reimbursed by their companies. Those people don't qualify to open a business card, but all those expenses are business related.

 

The issue most likely lies on the amount of charges, types of charges, cycling, etc. If a bank considers some of those situations excessive, they can shut you down.

 


Well I mean yeah... there's the people that put their flight and hotel on the Amex and get reimbursed by their company and there's the people that cycle $100k through the card to get $2k in cashback.  Smiley Very Happy


If I told you how much biz spend I put through personal cards, you'd think I'm BS'ing you... Smiley Very Happy

Message 25 of 61
babygirl1256
Valued Contributor

Re: Citi closed my double cash back account with no reason and is forfeiting my earned rewards

@jamesteroh Wow, that's a bummer . . . just consider the relationship water under the bridge . . . I redeem my rewards on all accounts monthly to avoid such a loss. Best wishes on resolving the rewards issue in your favor!!!

Starting FICO 8 Score in 06/2019: EQ-625, TU-649, EX-640
Current FICO 8 Score in 06/2021: EQ-796, TU-806, EX-812
Goal FICO 8 Score in 06/2022: EQ-825, TU-850, EX-850
Message 26 of 61
fantic
Frequent Contributor

Re: Citi closed my double cash back account with no reason and is forfeiting my earned rewards


@Credit12Fico wrote:

@simplynoir wrote:

As an example I used to put charges for my wife's business on the AMEX Biz Plat card and was running a heavy six figure balance each month not including other category charges. Then I started looking into getting a little more return for the spend and went with the Bank of American Premium Rewards (2.625% all charges with Premium Honors) and US Bank Altitude Reserve (3% with mobile wallet). Both cards are seeing heavy activity where I ocassionally have to pay it off to free up more credit and these cards have pretty big lines. Did have US Bank and BofA call me to ask about the charges at one point. I was upfront and told them what exactly they were and that was that. No more calls and no declined transactions to date

 

I don't know what it was that OP encountered to get the closure but business charges on personal accounts is nothing to any bank really


That's US Bank and BOA. 

 

Citi is a bit different. Citi does not like you going over your credit limit in a statement period. They also don't like multiple payments. Both of those behaviours trip their systems for manual review of the account. 


What??! I do that every month, albeit my card limits are small(DC 1500). If so I should just leave it to auto pay(I don't charge more than limit, actually quite small, like 2% of it lol)

Apr/21 CO Plat. SC(500->700), Aug; CITI DC(1000->1500), Sep; CFF(500), Oct; Amazon store card(2100->4000), CITI Best Buy store card(2000), Nov; Tomo(2000->3000), Jan/22; CO SO(2000), Feb/22; Disco It CB(3000)
FICO8 EX 721 EQ 722 TU 738 util 2%(of 16700)
AAoA 9m AoOA 1y4m AoYA 6m Cards 0/6 7/12 8/24 Inq EX 0/6 22/12 EQ 0/6 3/12 TU 0/6 5/12
Message 27 of 61
simplynoir
Community Leader
Mega Contributor

Re: Citi closed my double cash back account with no reason and is forfeiting my earned rewards


@imaximous wrote:

@TRC_WA wrote:

@imaximous wrote:

Think of the thousands if not millions of people who use their CSRs, Amex Plats, etc. to pay for their travel and other business expenses and get reimbursed by their companies. Those people don't qualify to open a business card, but all those expenses are business related.

 

The issue most likely lies on the amount of charges, types of charges, cycling, etc. If a bank considers some of those situations excessive, they can shut you down.

 


Well I mean yeah... there's the people that put their flight and hotel on the Amex and get reimbursed by their company and there's the people that cycle $100k through the card to get $2k in cashback.  Smiley Very Happy


If I told you how much biz spend I put through personal cards, you'd think I'm BS'ing you... Smiley Very Happy


No 💩, right? Same here 😂

Message 28 of 61
jamesteroh
New Member

Re: Citi closed my double cash back account with no reason and is forfeiting my earned rewards

Interesting that Citi doesn't like multiple payments a month.   Maybe that's what triggered them closing my account.   I know charged well over what my credit line was in a month, thus part of the reason for multiple payments.  

 

Weird thing is I have a lot of large business charges in January on my Delta AmEx and in early January I will send in a large prepayment and have made single charges larger than my credit line and AmEx doesn't say a thing and they have to know they are business charges (I have both a business and personal reserve card to max out the MQM's so maybe having a business card helps) and make multiple payments.

 

I also make multiple payments on my chase cards and spend well over my credit limit every month (but I never prepay).

 

Something interesting with AmEx is they will increase my available credit by the prepayment.  i.e. if I have zero in pending charges and do a prepayment for $20K and my credit line is $25K my available credit shows up as $45K.   If I were to do that with Citi or Chase or they would show my available as $20K.

Message 29 of 61
uncredited
Regular Contributor

Re: Citi closed my double cash back account with no reason and is forfeiting my earned rewards

@Credit12Fico  interesting about them not liking multiple payments. It's there more info or dps on that?  I currently do multiple payments to manage reporting util and also because I just find it easier to manage finances that way.  2-4 a cycle (including the payment for statement balance.) Only been a customer a few months and don't want to damage relationship, I like them very well, but that's also the first I've heard of any bank disliking getting money sooner than demanded.

 

I HAVE heard they don't like excessive payments many and limit how many pull payments per cycle  they will process, and going over limit as an issue makes total sense, but surely they can't just dislike getting paid too often?

Message 30 of 61
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.