Expert advise needed regarding AMEX green - they might close the account.

[Shinoga]

Hello Myfico members,

We need advise regarding paying off credit cards. My gf ran into a financial snag due to being hospitalized for 2 months in 2012-2013 which resulted in the following:

Current score Myfico EQ - 609

Fako creditsesame - 651

1 medical collection popped up $ 150 03/2013 - Grant & Weber

Bofa CC - 3200 balance since 02/13 - paid in full 07/13 However Bofa closed the account after she paid in full

Amex green - 2400 balance since 11/2013 Pay over time feature activated current" (however Amex sent her a letter stating she will no0 longer be approved for POT feature in the future)

Discover - 600/1000 current

First savings cc 500/750 current

Cap1 - 1800/2500 current

We contacted Grant and weber and they agreed for a PFD 2 weeks ago, so far Equifax updated. waiting on transunion and experian.

Her tax return came in today which we were planning on paying everything off in full however I was reading about amex closing accts due to a score drop / recent collection. She is worried that if she pays in full now Amex will close her acct. Amex soft pulled her in Dec. (she has been getting sp'd every month)

Options.

Pay off all the cards anyway and cross our fingers

Pay off all the cards except for amex , continue using pay over time and wait for the collections to fall off , check for an amex soft pull then pay in full once all cleared.

Your input is truly appreciated

[enharu]

Just pay off the cards and save on the interest fees. If Amex or any lender wants to close the accounts, they will eventually. Delaying isn't going to stop or change their minds; instead it may make it worse sometimes.

If they do close the accounts, and once the medical collection is taken off her report, just have her call the lender(s) to explain and they can reopen the accounts if its closed for less than 30 days. Not saying they are going to do that for sure, because it also depends on your gf's credit and internal scoring.

[Shinoga]

Great point, How about paying off everything else and giving Amex another billing cycle?

[enharu]

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@Shinoga wrote:

Great point, How about paying off everything else and giving Amex another billing cycle?

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if you really want to do that, you can. i doubt it will help much though. if they really want to close your account, nothing is going to stop them from doing so. worst case scenario they'll close the account even with the balance on it and it's just going look even worse during a manual review.

it isn't going to be in her favor if she drag balances on her card, especially right after another lender just took adverse action against her. it essentially proves that the bank which took AA against her is correct in their suspicions that she is having financial difficulty.

[Shinoga]

I see, alright, She will PIF all of them now and cross our fingers....I will update if anything happens.

[enharu]

if any lenders do take AA against her, have her call them once the collection is removed.

If it's going to take more than 30 days for the collection company to remove that record, then call the banks right away and explain her situation.

[Shinoga]

Ok will do, Thank you so much!!