@Anonymous wrote:
@Anonymous wrote:
@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.
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.
There is a lot of misinformation on this thread!
A closed credit card account cannot get new charges to it, cannot balance transfer to it, can be paid down.
It is still handled the same by the bank, it still looks just like a credit card so you can balance transfer amounts away by going to another card which is going to provide the funds, and that bank offering the BT sends payment to the bank you want to transfer funds from. Does not matter if that account being transferred from is open or closed.
It does not matter in scoring who initiated the account closure, and I really doubt "closed by lender" would even be a factor in manual review. The cardholder no longer has the credit available. As long as it is being paid off, who cares who closed it?
Finally, a closed card with balance is factored in FICO utilization outside of open cards. There is still a score impact because any balance has some effect on score, but it is not part of your "open account utilization".
Use the 0% APR for the term, to pay it down over 12 months. Just be aware whether there is "deferred interest" that will all come back due if any of the balance remains at the end of the 0% term. I don't know if there is in this case, but it is possible that Overstock has deferred interest.
@NRB525 wrote:
@Anonymous wrote:
@Anonymous wrote:
@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.
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.
There is a lot of misinformation on this thread!
A closed credit card account cannot get new charges to it, cannot balance transfer to it, can be paid down.
It is still handled the same by the bank, it still looks just like a credit card so you can balance transfer amounts away by going to another card which is going to provide the funds, and that bank offering the BT sends payment to the bank you want to transfer funds from. Does not matter if that account being transferred from is open or closed.
It does not matter in scoring who initiated the account closure, and I really doubt "closed by lender" would even be a factor in manual review. The cardholder no longer has the credit available. As long as it is being paid off, who cares who closed it?
Finally, a closed card with balance is factored in FICO utilization outside of open cards. There is still a score impact because any balance has some effect on score, but it is not part of your "open account utilization".
Use the 0% APR for the term, to pay it down over 12 months. Just be aware whether there is "deferred interest" that will all come back due if any of the balance remains at the end of the 0% term. I don't know if there is in this case, but it is possible that Overstock has deferred interest.
There is a lot of correct information in this thread as well. pipeguy's post, AverageJoe's post, and mine as well contain correct information. Very easy for the OP to follow the correct information posted by pipeguy, AverageJoe, and myself. Have a fantastic weekend. 
@rmduhon wrote:
@RJCE Too much too fast combined with a combination of store cards and Visa cards spook them.
Remember that the combination of store cards and Visas is not an issue with Comenity. Many people on the board here have received account closures who only had store cards, or who only had Visa or MC.
Too much too fast can definitely create a problem, I agree.