Comenity Bank Closure Strikes Again!

[Anonymous]

So look I had a Sportsman Guide Visa for a little under a month now. It was my last app beforr went into gardening mode (started getting declines for too many inquiries).

I went to ise the card to actually buy something at sportsman guide, go figure. I was declined so confused I checked the website and it said available credit $0 of $2500. Right as I was about to call them, I get an update from Myfico saying account closed by grantor.

I called, they said account closed for too many inquiries. I searched the boards and now see that that is a thing. I dont understand why they would approve someone and close them in less than a month. Applied on 10/1, closed on 10/18 apparently from what the rep says.

It is frustraiting as I have 3 other cards by them that I have had no issues with. I read some place that once you get a visa/MasterCard That's when you have problems.

Now my thing is can I fight to habe the account removed and inquiry removed from my CR without messing with other cards from them ... I would have never applied had they not said I was preapproved. But now I have a HP, and a "newly" opened account which lowers my AAofA. I wouldnt have mind since gardening but this lowers it all with no positive.

Any thoughts.

[AverageJoesCredit]

Sorry to hear but this is a hard lesson to learn and it is what they do now. Preapproved means nothing just a way to get you to apply. You can't fight the hp or account as it is legit. Too many inquiries is fast becoming the #1 excuse for account closures recently. Id move on and be wary when multi apping or soliciting alot of credit.

[FinStar]

As mentioned above, the account and HP would not be removed by Comenity, unfortunately. If it had involved a fraud or identity theft situation, then you would have a case.

While someone may be instantly auto-approved by their system, a secondary audit review is later performed that eventually leads to AA. What algorithm or methods they use that target certain behaviors or individuals is not known publicly. But, it's definitely a well-known topic around various CC forums.

[Anonymous]

Thanks Fin and Joe. I just feel that sucks. I never seen a company so that. It just seems like a waste of resources to approve someone, print a card and welcome packet, send it to you and even let me use the Card a few days. Luckily it wasnt any big purchases, just a few $5 and $6 transactions at gas stations and fast food.

I think that is horrible though. Yeah, as that was my last app so I been in garden for about a month. Feels weird not applying but in holsing steady.

[Anonymous]

Comenity nuked my newly-minted IKEA account too, then there was a banner on my Overstock store card for 60 days that I wasn't eligible for CLI.  As soon as the banner fell off, I requested a CLI on the Overstock account, and they gave me $1500...$7300 to $8800, so all is not lost.  

In my case the main value in the IKEA account was the rebate on the first purchase, and free shipping that was only in effect until the end of August, so in all likelihood it would have never been used again anyway, but it did irritate me more than a little.

[FinStar]

Just something to consider in the future OP. It's not only Comenity that does this type of AA, Chase is another example. SYNCB and Barclays have been known to either CLD or close accounts as well.

To someone (primarily on these or other CC forums) it may seem like a waste of resources, sure. To the lending institution, it's merely a risk assessment protocol to curb losses which is built into their bottom line whenever AA instances are executed.

[Anonymous]

Right! Ticked me off. I was going to use it to buy something from the store I been eyeing on the site for some time. I was trying to figured out the lowest option and with the discount the card gets you it was less expensive than locally here even after shipping, but without the discount it isn't.

I have a wayfair, zales and NTB card with them but guess I cant use the NTB card because of a fraud alert lol. So its just sitting there. I called them about it and they say I have to call Credit agencies which I have but the NTB card is still locked lol. Maybe wayfair I can get an increase from $1500 to $8800 like you. Was that after using the card a lot, a little or not at all?

[FinStar]

As with anything credit-related, don't take it personal OP. It's simply a business (risk) decision, nothing more, nothing less. It may seem annoying, sure. But, the sun will still set, and will still rise tomorrow.

Just take it as a lesson learned. The credit landscape often changes so one needs to be adaptable.

[Anonymous]

Thanks! I appreciate it everyone! Well, I guess I'll stay in the garden.

[Medic981]

OP, as previously stated, don't take it personally just as the CCCs don't take it personally when you sock drawer or close an account. 

Just take this as a wakeup call. Garden to age your current accounts and only apply for credit that you need.

I have all the credit that I need. I don't have all the credit that I want! So I am gardening until I age my accounts to the point that I can apply for the credit that I want.