HELP! Wells Fargo/Mattress Firm closing all accounts with balances??

[nitrov]

I just got a call from WF who provides financing for Mattress Firm stating one of my promotional balances was expiring within 30 days and to check my statement. When I went online to check my statement, I noticed a big fat giant box with a notification on the top that said "Please be advised that the program between Mattress Firm and Wells Fargo will be ending on March 31, 2016. This means your credit card may no longer be used to make purchases and your account will be closed."

I called a CSR and asked what this meant since I still have a balance of $2000 that was supposed to be 0% for another 36 months from a mattress I bought last year. She said my account will be closed so I cannot make future purchases but I can still continue to pay the balance off under the agreed repayment arrangement. I told her a closed account with a balance will adversely affect my credit and she said she can direct me to the credit reporting group if that happens. WHAT?! I don't want my credit to take a hit because they're closing the account. Does that mean this will report as "Closed by credit grantor?" I've never had something like this happen before! Should I PIF before 3/31 to make sure it doesn't negatively report? HELP! What do I do?

[Anonymous]

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@nitrov wrote:

I just got a call from WF who provides financing for Mattress Firm stating one of my promotional balances was expiring within 30 days and to check my statement. When I went online to check my statement, I noticed a big fat giant box with a notification on the top that said "Please be advised that the program between Mattress Firm and Wells Fargo will be ending on March 31, 2016. This means your credit card may no longer be used to make purchases and your account will be closed."

I called a CSR and asked what this meant since I still have a balance of $2000 that was supposed to be 0% for another 36 months from a mattress I bought last year. She said my account will be closed so I cannot make future purchases but I can still continue to pay the balance off under the agreed repayment arrangement. I told her a closed account with a balance will adversely affect my credit and she said she can direct me to the credit reporting group if that happens. WHAT?! I don't want my credit to take a hit because they're closing the account. Does that mean this will report as "Closed by credit grantor?" I've never had something like this happen before! Should I PIF before 3/31 to make sure it doesn't negatively report? HELP! What do I do?

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A card being reported as closed by creditor won't hurt your scores one bit.  As long as it continues to report with the original limit and current balances, which it should, you'll be fine and nothing will change.

[Anonymous]

Wow, sorry to hear about this. To be quite honest, there is not a whole lot that you can do about it other than try to pay off the balance before that account is closed and reported as such.

[Anonymous]

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@Anonymous wrote:

Wow, sorry to hear about this. To be quite honest, there is not a whole lot that you can do about it other than try to pay off the balance before that account is closed and reported as such.

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Nah, he doesn't need to pay it off before it closes.  He can continue to pay it just as he was.

[Anonymous]

Yeah, you're right. I just know how I am and if I had a card that was closing I'd try and get it paid off. Then again, I'm a little crazy about stuff like that.

[nitrov]

I thought they always say you NEVER want to let an account close with a balance on it? As long as it won't hurt my credit I don't care one bit. I can't believe they're closing the accounts. I've never had this happen before. I know it's not just me and it's not adverse action in any way but it's still just unbelievable that they'd do that!

[nitrov]

It's not like it's a terribly large amount of money so if it would avoid hurting me I'd rather just pay it but if I won't hurt me I'll just leave it.

[Anonymous]

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@nitrov wrote:
I thought they always say you NEVER want to let an account close with a balance on it? As long as it won't hurt my credit I don't care one bit. I can't believe they're closing the accounts. I've never had this happen before. I know it's not just me and it's not adverse action in any way but it's still just unbelievable that they'd do that!

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The only time it would hurt you is if it reported as a $0 limit with $XXXX as a balance.  Occasionally a creditor will do that if the closing was a result of adverse action but in this case I'm sure they will continue to report it exactly as they have with the possible addition of 'closed by creditor' which doesn't hurt you at all.

[kjm79]

When an account closes with a balance, both the balance and CL should still report. What might hurt you down the road is when you pay off the balance and then the OC stops reporting the CL. That will reduce your overal available CL. But, for as long as the account still carries a balance, your should not be adversely affected. 

[nitrov]

Ok, thanks everyone! Hopefully it doesn't hurt me. Can't believe those people!