I just got a secure message on my account - Comenity is closing Wayfair cards on Sept 11, 2020.
Dang. I loved this card. It's a $8,300 CL for me too.
and there goes my credit score. $500 gone from my overall available credit.
I HATE 2020.
@Anonymous wrote:I just got a secure message on my account - Comenity is closing Wayfair cards on Sept 11, 2020.
Dang. I loved this card. It's a $8,300 CL for me too.
Yep got the same... closing down the cards and relationship with Wayfair as of September 11th, can charge through September 10th. Wish someone would partner and offer a card with them where the 0% financing for 6 or 12 months could still come into play...
@blindambition wrote:This is surprising! They just announced a HUGE quarter and 5 million new customers. Dropping Comenity isn't a surprise, but no other lender taking portfolio. Here's an article on their business this year. Wayfair Quarterly Results
I suspect they will have a deal with another lender and Comenity can keep their profile..... Would be foolish of them not to have already made such a deal.
@Anonymous wrote:and there goes my credit score. $500 gone from my overall available credit.
I HATE 2020.
@Anonymous wrote:I just got a secure message on my account - Comenity is closing Wayfair cards on Sept 11, 2020.
Dang. I loved this card. It's a $8,300 CL for me too.
A card closing doesnt affect your score unless you allow it to affect your utilization. I HATE COVID!
@AverageJoesCredit wrote:
@Anonymous wrote:and there goes my credit score. $500 gone from my overall available credit.
I HATE 2020.
@Anonymous wrote:I just got a secure message on my account - Comenity is closing Wayfair cards on Sept 11, 2020.
Dang. I loved this card. It's a $8,300 CL for me too.
A card closing doesnt affect your score unless you allow it to affect your utilization. I HATE COVID!
Definitely curious.
COVID played a huge role in accelerating online shopping. Until COVID, Wayfair had never turned a profit. Investors flocking to all things ecommerce also drove up their share price and is helping them convert a lot of debt into equity on favorable terms.
One might speculate how long they'd have stayed in business without COVID, and how long consumer credit lines would have remained open without COVID.
Yet now they're closing these accounts anyway when they're more profitable than ever.
Perhaps they intend to offer in-house financing? Something like the old Signet model where they have loose credit standards to sell more products, and high margins allow them to be profitable even if they suffer a high charge-off rate?
They have very high margins and some people in their investor community note their products are quite expensive compared to competitors.
There goes my score, too. Wayfair is one of my higher limit cards and I was mainly keeping it around for utilization padding. Without it, my overall utilization will increase to 31%, so my scores will definitely take some sort of a hit. I'm just glad it didn't have a balance since I only used it a few times a year. Maybe I'll look at replacing it with a Lowe's or Home Depot card...
