Comenity Closed My Accounts w/ Balance - QUESTION please? UTI Effect?

[Anonymous]

Hi Everyone, soooo I opened an Overstock account with Comenity and was approved with $7000 limit on 1/2/17 and I also applied for ULTA Mate Mastercard and I was also approved for $2,000. I used the Overstock to purchase something online it was $3,200 I also used their 18months no interest, even though I plan to pay it off in 3 months. Well, I tried to purchase an item that was on sale yesterday on Overstock and my card was declined so I called and was told that they just closed my account.... and when I tried to log to my Ulta Card it also gave me an error. Needless to say both account were closed. UGH!

My questions are  - both account will show "Close by Credit Grantor" which I know is negative impact on your credit.... but I'm more concern with the UTI? will it show $3,200 used of $0 credit limit? or $3,200 used of $7000 credit limit? will this also be included in your UTI calculation when the account is closed?

Thanks to anyone who can shed me some light.  

[mattmyFIC0]

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@Anonymous wrote:

Hi Everyone, soooo I opened an Overstock account with Comenity and was approved with $7000 limit on 1/2/17 and I also applied for ULTA Mate Mastercard and I was also approved for $2,000. I used the Overstock to purchase something online it was $3,200 I also used their 18months no interest, even though I plan to pay it off in 3 months. Well, I tried to purchase an item that was on sale yesterday on Overstock and my card was declined so I called and was told that they just closed my account.... and when I tried to log to my Ulta Card it also gave me an error. Needless to say both account were closed. UGH!

My questions are  - both account will show "Close by Credit Grantor" which I know is negative impact on your credit.... but I'm more concern with the UTI? will it show $3,200 used of $0 credit limit? or $3,200 used of $7000 credit limit? will this also be included in your UTI calculation when the account is closed?

Thanks to anyone who can shed me some light.  

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Yea they like to pull this bs on people. The closed by credit grantor will not affect your scores. It might cause a question under manual review of your report but even then I don't think it'll be an issue unless the account was really delinquent or something.

It will still be included in your overall util calculation and I think it might show the card as maxed. I haven't had this happen to be totally sure of the maxed part. Hoepfully someone with some experience can weigh in on that part.

[Anonymous]

Yep - the account will report 100% utilization until paid off

Comenity Rocks!  

[Anonymous]

Comenity........... we take all of your cards away, then offer you new ones the very same day.

(yes, this has unfortunately happened to quite a number of people).

In all seriousness, OP, I'm sorry this has happened to you and you will ultimately be ok. Comenity can't require you to pay the balance off all at once and can only require you to pay monthly per the terms of your (now closed) account. The difficulty with this is that your account will show extremely high utilization with zero credit being available and a large balance showing. It's terrible of them to do this to you.

If you are concerned about your utilization, it would be best to try to find a way to pay the card off quickly. You wouldn't able to transfer the balance to another lender or card with the account now being closed, unfortunately.

The best suggestion for anyone is to just say no to Comenity. This won't help the OP now, but hopefully will help others learn to be cautious of Comenity going forward.

[gdale6]

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@Anonymous wrote:

Hi Everyone, soooo I opened an Overstock account with Comenity and was approved with $7000 limit on 1/2/17 and I also applied for ULTA Mate Mastercard and I was also approved for $2,000. I used the Overstock to purchase something online it was $3,200 I also used their 18months no interest, even though I plan to pay it off in 3 months. Well, I tried to purchase an item that was on sale yesterday on Overstock and my card was declined so I called and was told that they just closed my account.... and when I tried to log to my Ulta Card it also gave me an error. Needless to say both account were closed. UGH!

My questions are  - both account will show "Close by Credit Grantor" which I know is negative impact on your credit.... but I'm more concern with the UTI? will it show $3,200 used of $0 credit limit? or $3,200 used of $7000 credit limit? will this also be included in your UTI calculation when the account is closed?

Thanks to anyone who can shed me some light.  

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I dont know where that comes from, there is no negative impact on your credit by it showing closed by grantor as long as it gets paid off and is showing as a good account.

[Anonymous]

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@Anonymous wrote:

Comenity........... we take all of your cards away, then offer you new ones the very same day.

(yes, this has unfortunately happened to quite a number of people).

In all seriousness, OP, I'm sorry this has happened to you and you will ultimately be ok. Comenity can't require you to pay the balance off all at once and can only require you to pay monthly per the terms of your (now closed) account. The difficulty with this is that your account will show extremely high utilization with zero credit being available and a large balance showing. It's terrible of them to do this to you.

If you are concerned about your utilization, it would be best to try to find a way to pay the card off quickly. You wouldn't able to transfer the balance to another lender or card with the account now being closed, unfortunately.

The best suggestion for anyone is to just say no to Comenity. This won't help the OP now, but hopefully will help others learn to be cautious of Comenity going forward.

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I'm not certain this is entirely accurate - OP has an NFCU card in their signature as an example, there's nothing stopping them from logging into online banking and transferring it right this minute (unless the available credit isn't there of course), and with the current 2.99% promo with no BT fee, this isn't a bad idea.

[rmduhon]

It'll show $3,200 used of 0 available credit, putting you way over 100% for the card, and possibly extremely high UTI overall, depending on the limits and balances are for your other cards.

[longtimelurker]

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@Anonymous wrote:

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@Anonymous wrote:

Comenity........... we take all of your cards away, then offer you new ones the very same day.

(yes, this has unfortunately happened to quite a number of people).

In all seriousness, OP, I'm sorry this has happened to you and you will ultimately be ok. Comenity can't require you to pay the balance off all at once and can only require you to pay monthly per the terms of your (now closed) account. The difficulty with this is that your account will show extremely high utilization with zero credit being available and a large balance showing. It's terrible of them to do this to you.

If you are concerned about your utilization, it would be best to try to find a way to pay the card off quickly. You wouldn't able to transfer the balance to another lender or card with the account now being closed, unfortunately.

The best suggestion for anyone is to just say no to Comenity. This won't help the OP now, but hopefully will help others learn to be cautious of Comenity going forward.

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I'm not certain this is entirely accurate - OP has an NFCU card in their signature as an example, there's nothing stopping them from logging into online banking and transferring it right this minute (unless the available credit isn't there of course), and with the current 2.99% promo with no BT fee, this isn't a bad idea.

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Right, you cannot BT TO a closed card of course, but paying it off with a BT isn't an issue (consider those lenders who give you a check to deposit and use as you wish, clearly you could use that to pay off Comenity)

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Comenity........... we take all of your cards away, then offer you new ones the very same day.

(yes, this has unfortunately happened to quite a number of people).

In all seriousness, OP, I'm sorry this has happened to you and you will ultimately be ok. Comenity can't require you to pay the balance off all at once and can only require you to pay monthly per the terms of your (now closed) account. The difficulty with this is that your account will show extremely high utilization with zero credit being available and a large balance showing. It's terrible of them to do this to you.

If you are concerned about your utilization, it would be best to try to find a way to pay the card off quickly. You wouldn't able to transfer the balance to another lender or card with the account now being closed, unfortunately.

The best suggestion for anyone is to just say no to Comenity. This won't help the OP now, but hopefully will help others learn to be cautious of Comenity going forward.

---

I'm not certain this is entirely accurate - OP has an NFCU card in their signature as an example, there's nothing stopping them from logging into online banking and transferring it right this minute (unless the available credit isn't there of course), and with the current 2.99% promo with no BT fee, this isn't a bad idea.

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Actually, it is accurate if the card is closed. You cannot BT from a closed card.

Options for the OP are to either pay it off immediately (I'd suggest to do this if he can, so his utilization is not upside down). Return the overstock purchase if possible or use other personal funds rather than borrowing with interest from other cards to pay off the balance (not ideal).

The other option is to follow the original payment schedule and pay it off over time, with the understanding that utilization will be upside down as a result.

[longtimelurker]

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@Anonymous wrote:

Actually, it is accurate if the card is closed. You cannot BT from a closed card.

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Well, that's repeating what you said, but why?  Again, my example: Bank X offers me a "convenience/BT check" to deposit in my bank account.   I use that to pay off the closed card.    Other than that, if I attempt a direct balance transfer, who checks (and cares) that the account is closed?