Master Synchrony Account Closure Thread

[credit_endurance]

This is very unfortunate OP of the closures. My experience a few weeks back and others for a matter of fact was a precursor of what is to come. I am afraid of Synchrony will do more of the  cutting while they are ahead. Not the end of the world OP. Give your business to other more appreciative lenders. There is plenty to choose from. 👍

[DaveInAZ]

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@policebox wrote:

I'm in the same situation.

Just logged in to check my transactions on my PayPal Cash Back MC. Credit limit to $0. Checked all my other Synchrony accounts, all closed.

Lost the following:

PayPal Cash Back MasterCard $10,000

Rakuten Cash Back Visa $10,000

Chevron/Texaco Card $10,000

Ashley Homestore $25,000

Amazon Prime Store Card $10,000

Their reason was that something on my credit report indicated I was high risk, but yet the representative wouldn't tell me what that reason was. Nothing has changed on any of my reports except for opening a mortgage recently.

I've had these accounts for years, no late payments, always pay in full (usually before the statement cuts). Only 1% overall utilization. No baddies. 800+ FICO scores. No change in income. Not financially affected by COVID-19.

I'll never use another one of their products again if this is how they treat someone who was zero risk to them.

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Well, if a lender did this to me they'd never get a dime of business from me again, I don't blame you. But a couple things:

- $65k in CLs is alot of exposure to one customer for them, but the sensible thing would be to lower CLs, not close everything

- Your new mortgage might have been the trigger. Logically one would think "Oh, they bought a home, must be very financially stable!". But the thing with installment loans is that credit scoring treats them the same as credit cards for utilization. Your new mortgage is reporting at 99.99% utilization, the same as if you maxed out your Ashley Homestore w/$25,000 CL. I've had a car loan since Oct. 2017, and instead of an "Atta Boy! You've paid off 44% of that car loan!" I get a "Loan Balances Too High!!!" on my credit scores, and will get that message until I get it under 50%.

- The other thing is Synchrony seems to really, really hate paying off balances before the statement. I see posts about folks complaining about Synchrony randomly reporting balances mid statement, and almost always they have been PIF before the statement. In my opinion I see no sense in doing that, I've always loved "free money" and when I get the interest free float as long as I PIF before the due date why in the world would I pay it sooner than necessary???

And probably like most folks posting in this thread, I checked my Synchrony accounts first. Now that Walmart went to Cap One I just have PayPal MC and Lowes. I run around $1200 /mo. through PayPal, monthly bills that don't meet a higher category spend on other cards, and they just gave me an auto CLI from $10k to $12,500 last month. Lowe's is probably most at risk, $15k CL. I did run some large balance through it 4-5 years ago with deferred interest, but the last couple years it's been a garden hose or houseplant twice a year to keep it active.

[Anonymous]

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@DaveInAZ wrote:

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@policebox wrote:

I'm in the same situation.

Just logged in to check my transactions on my PayPal Cash Back MC. Credit limit to $0. Checked all my other Synchrony accounts, all closed.

Lost the following:

PayPal Cash Back MasterCard $10,000

Rakuten Cash Back Visa $10,000

Chevron/Texaco Card $10,000

Ashley Homestore $25,000

Amazon Prime Store Card $10,000

Their reason was that something on my credit report indicated I was high risk, but yet the representative wouldn't tell me what that reason was. Nothing has changed on any of my reports except for opening a mortgage recently.

I've had these accounts for years, no late payments, always pay in full (usually before the statement cuts). Only 1% overall utilization. No baddies. 800+ FICO scores. No change in income. Not financially affected by COVID-19.

I'll never use another one of their products again if this is how they treat someone who was zero risk to them.

---

Well, if a lender did this to me they'd never get a dime of business from me again, I don't blame you. But a couple things:

- $65k in CLs is alot of exposure to one customer for them, but the sensible thing would be to lower CLs, not close everything

- Your new mortgage might have been the trigger. Logically one would think "Oh, they bought a home, must be very financially stable!". But the thing with installment loans is that credit scoring treats them the same as credit cards for utilization. Your new mortgage is reporting at 99.99% utilization, the same as if you maxed out your Ashley Homestore w/$25,000 CL. I've had a car loan since Oct. 2017, and instead of an "Atta Boy! You've paid off 44% of that car loan!" I get a "Loan Balances Too High!!!" on my credit scores, and will get that message until I get it under 50%.

- The other thing is Synchrony seems to really, really hate paying off balances before the statement. I see posts about folks complaining about Synchrony randomly reporting balances mid statement, and almost always they have been PIF before the statement. In my opinion I see no sense in doing that, I've always loved "free money" and when I get the interest free float as long as I PIF before the due date why in the world would I pay it sooner than necessary???

And probably like most folks posting in this thread, I checked my Synchrony accounts first. Now that Walmart went to Cap One I just have PayPal MC and Lowes. I run around $1200 /mo. through PayPal, monthly bills that don't meet a higher category spend on other cards, and they just gave me an auto CLI from $10k to $12,500 last month. Lowe's is probably most at risk, $15k CL. I did run some large balance through it 4-5 years ago with deferred interest, but the last couple years it's been a garden hose or houseplant twice a year to keep it active.

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Looking at from their end, I don't think they care if they get nothing from you ever again, otherwise they wouldn't close all the accounts. 

They just think they're better off using unused credit lines or accounts that are deemed too risky for other lending products or other customers. If a cardholder is low risk and profitable, they wouldn't cut off that cardholder. They need profitable lower risk customers, and that's one reason they are cutting accounts. 

[Anonymous]

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@chiefone4u wrote:

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@Brian_Earl_Spilner wrote:

Wow, sorry to hear that. Will be checking back for an update.

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I forgot I had applied for the Marvel card a few weeks ago. The letter in the mailbox was it's denial letter dated April 12, 2020:

Not enough balance paid down over time on real estate secured loans  (mortgage is 14 months old have been paying extra $100 a month-- not surprising not much has been paid down on a 30 year loan in 14 months) 

Too many bank cards with a high balance (one card is nearly maxed from balance transfer) 

Not enough balance paid down over time on revolving accounts 

Too many Inquiries 

Score provided was from April 8, 2020 : 645

I always pay more than minimum, no lates in the last 8 years. 

Hopefully I get a letter explaining why. Old Navy Visa says I requested the closure (I did not) when I asked the chat bot online; all other accounts chat but says "sorry, it appears your account is closed".

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Soon as I read that, figured that was why.  Didn't see anyone else mention it neither, which I find odd.   But...dollars to donuts..

Sorry to hear. 

[Anonymous]

Recently they closed my accounts. From what I gathered their reasoning was due to me having a decent amount of credit lines on other issuers and that may have gotten them worried I would rack them all up I guess. Not completely sure but that's what it sounded like to me. I guess it's pulling the plug before anything potentially happens as a protection or just in case scenario 

[GApeachy]

Did you ever keep up with Synch's VS4 scores?  If so, did they take a major dive that you can remember?

[Anonymous]

To be honest, that sounds like the rep just picked an excuse off the page and said "yeah this'll be enough." It's very likely the majority of their customers have multiple lines of credit. 

I'm still thinking that the common thread among those who were shut down (huge aggregate exposure on multiple Synch cards) is most likely the factor that did it. Synch is less likely to care if you default on other lenders than if you have the potential to default on multiple lines that they are backing. Just my opinion, which along with $3 will get you a coffee, but it seems to be the logical reason in my mind.

[chiefone4u]

That's why I shared the denial information @Anonymous figured it might be related and might be useful to others. 

PenFed is the card holding a balance which is currently at 94% utilization with an offer of 0% apr until july 2021.

I have an AU card I'm on and an HSBC card that are roughly 62% utilization. All other cards are under 20% with what was 2/3rds reporting $0 balances.

Vantage 3.0 gave me a 47 point increase after all these Synchrony cards reported closed (Transunion is reporting closed April 15, 2020) with no other meaningful changes; one card made the 2 year old hump... don't see that jumping my scores much.

[wasCB14]

Card usage is also important. Huge CLs that sit mostly idle in good times aren't very profitable...and in bad times they can lead to huge losses for a lender when the borrower finally uses them out of financial desperation.

[AverageJoesCredit]

If Sync has not closed your accounts i wouldnt do any closures right now.  Let it ride.  I would just use each card for a charge , then pay it , let them know you are still here.