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Discover Closed my Account without Warning

GrayStar
New Contributor

Re: Discover Closed my Account without Warning


@Overmedicated wrote:

@GrayStar wrote:

I see what you're saying now. Thanks for the advice. I'm still learning about how this credit stuff works


Gray,

After you click reply, you can click "Quote" so everyone knows who you are responding to.

 

quote.JPG

 


Got it. Thanks for the tip :-)

Message 21 of 36
Remedios
Moderator

Re: Discover Closed my Account without Warning

@GrayStar  you will be okay. It's certainly a loss, but it's the one you can overcome.

It's really important you stop applying, let derogs and the accounts age.

Once your credit improves, you will be able to pick and choose, but in order to get there, you cannot get caught in the application hype.

It's not just you, it happens to many once they discover this forum. App after app after app till the well dries completely or worse things happen. 

Been there, done that (more than once). 

Just take care of what you have, and it will work out. Might take a while, but not as long as you might think 

Message 22 of 36
GrayStar
New Contributor

Re: Discover Closed my Account without Warning


@Remedios wrote:

@GrayStar  you will be okay. It's certainly a loss, but it's the one you can overcome.

It's really important you stop applying, let derogs and the accounts age.

Once your credit improves, you will be able to pick and choose, but in order to get there, you cannot get caught in the application hype.

It's not just you, it happens to many once they discover this forum. App after app after app till the well dries completely or worse things happen. 

Been there, done that (more than once). 

Just take care of what you have, and it will work out. Might take a while, but not as long as you might think 


To be honest, applying for so much credit is like an addictive drug. Once you're hooked, it's hard to get off. I am following what you and others are saying and I will begin the process of gardening until I feel like I'm ready to apply for credit again. It's a road to recovery and rests assured, my credit will blossomed in the eyes of future lenders. 

Message 23 of 36
Anonymous
Not applicable

Re: Discover Closed my Account without Warning


@GrayStar wrote:

That's what I'm going to do from now on to show some activity across all accounts. I'm pretty strict when it comes to utilization so I try to keep it as low as possible to give my credit score a boost. 


Do remember that showing activity doesn't have to impact your utilization.  You can make a small purchase on your card (that alone counts as activity) and then immediately pay it off.  This exercise will not impact your utilization at all, but will constitute activity and prevent your card from getting closed down for non-use.

Message 24 of 36
GrayStar
New Contributor

Re: Discover Closed my Account without Warning


@Anonymous wrote:

@GrayStar wrote:

That's what I'm going to do from now on to show some activity across all accounts. I'm pretty strict when it comes to utilization so I try to keep it as low as possible to give my credit score a boost. 


Do remember that showing activity doesn't have to impact your utilization.  You can make a small purchase on your card (that alone counts as activity) and then immediately pay it off.  This exercise will not impact your utilization at all, but will constitute activity and prevent your card from getting closed down for non-use.


When I use the card for small purchases, do I have to pay the balance off before or after the statement closes which reports to credit bureaus?

Message 25 of 36
Remedios
Moderator

Re: Discover Closed my Account without Warning

@GrayStar  that's a matter of personal preference. 

If you are trying to maximize your scores, you can pay balance before statement cuts (one card should report balance), but in doing so, you are willingly giving up grace period.

Unless you are preparing to apply for something, it's absolutely not necessary.

If you're only putting a few dollars to keep card active, no big deal if you pay it before statement cuts.

Also, you don't have to use each card every month, once every three months or so is sufficient.

Use the cards that give you best rewards, don't throw money on ones that don't. 

I know what discover letter said, but there is a lot more there than just six months of non use. 

I personally wouldn't spend time and energy micromanaging. 

Use, wait for statement, pay. 

Don't create credit neurosis where you pull your hair because you didn't pay before the statement.

In a nutshell, act like 99% of cardholders do..wait for the bill. 

Once you are ready to apply for something, that's when you'd want to look pretty. 

Message 26 of 36
Anonymous
Not applicable

Re: Discover Closed my Account without Warning


@GrayStar wrote:


When I use the card for small purchases, do I have to pay the balance off before or after the statement closes which reports to credit bureaus?


That's totally up to you and depends on whether or not you want that card to report a [non-zero] balance to the bureaus for that month.  I was speaking just on the topic of showing card use, though.  If you make a purchase and immediately pay it off even thought your CR will continue to show $0 month after month, your creditor will see the transaction and you won't have to worry about non-use being a reason for account closure.

Message 27 of 36
GrayStar
New Contributor

Re: Discover Closed my Account without Warning


@Remedios wrote:

@GrayStar  that's a matter of personal preference. 

If you are trying to maximize your scores, you can pay balance before statement cuts (one card should report balance), but in doing so, you are willingly giving up grace period.

Unless you are preparing to apply for something, it's absolutely not necessary.

If you're only putting a few dollars to keep card active, no big deal if you pay it before statement cuts.

Also, you don't have to use each card every month, once every three months or so is sufficient.

Use the cards that give you best rewards, don't throw money on ones that don't. 

I know what discover letter said, but there is a lot more there than just six months of non use. 

I personally wouldn't spend time and energy micromanaging. 

Use, wait for statement, pay. 

Don't create credit neurosis where you pull your hair because you didn't pay before the statement.

In a nutshell, act like 99% of cardholders do..wait for the bill. 

Once you are ready to apply for something, that's when you'd want to look pretty. 


Remedios, I feel much better now after reading this information. Thanks. 

Message 28 of 36
GrayStar
New Contributor

Re: Discover Closed my Account without Warning


@Anonymous wrote:

@GrayStar wrote:


When I use the card for small purchases, do I have to pay the balance off before or after the statement closes which reports to credit bureaus?


That's totally up to you and depends on whether or not you want that card to report a [non-zero] balance to the bureaus for that month.  I was speaking just on the topic of showing card use, though.  If you make a purchase and immediately pay it off even thought your CR will continue to show $0 month after month, your creditor will see the transaction and you won't have to worry about non-use being a reason for account closure.


I will try to focus on using my other cards as needed to show some activity and to improve my scores. As I rebound from Discover closing my account, things will get better in the end. 

Message 29 of 36
Remedios
Moderator

Re: Discover Closed my Account without Warning


@GrayStar wrote:

@Anonymous wrote:

@GrayStar wrote:


When I use the card for small purchases, do I have to pay the balance off before or after the statement closes which reports to credit bureaus?


That's totally up to you and depends on whether or not you want that card to report a [non-zero] balance to the bureaus for that month.  I was speaking just on the topic of showing card use, though.  If you make a purchase and immediately pay it off even thought your CR will continue to show $0 month after month, your creditor will see the transaction and you won't have to worry about non-use being a reason for account closure.


I will try to focus on using my other cards as needed to show some activity and to improve my scores. As I rebound from Discover closing my account, things will get better in the end. 


Considering how well you've taken what you read, and your attitude in general, you will do great.

Also, one more thing, look into enabling autopay as a failsafe. 

You can set it at minimum payment only, just in case. 

It will help avoiding payment snags if you forget, travel, life happens etc. 

Message 30 of 36
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