Master Synchrony Account Closure Thread

[M_Smart007]

---

@Anonymous wrote:

The day after my birthday I found out that synchrony Bank has closed all of my accounts.  No notice.

I have good payment history with them and never any late payments.

---

Sorry for your closeures

I had almost 100K  ...go POOF!

After some time has gone by, don't miss them at all.

Not interested in app'ing for any of their cards again.

[Anonymous]

Synchrony closed my Lumbar Liquidators and Furniture Row accounts with no warning (sent a letter after the fact). I had been a loyal customer and paid these accounts in full. This has been a huge hit to my credit report since losing $11,000 of available credit and reducing the ages of my open accounts. I have had these accounts for years and they both had zero balances upon cancellation.

[K-in-Boston]

@Anonymous since you have the letters, were your accounts closed for non-use (and if so, how long since you had activity?) or because of risk as many others are seeing?

[smitty1]

---

@smitty1 wrote:

They closed all of mine too.  I had PayPal MC, ebay MC, Quality Sewing, Crate & Barrel, Amazon Prime store card.  All had zero balances, never been late.  The PayPal hurts the most, 9k limit, used it quite often.  Have not received any notice yet, they say just to wait for the letter.

---

I got the letter, all said the same thing.  "Activity on accounts with Synchrony Bank indicative of high risk of failure to pay".

All had zero balance, PIF each month. No more Synchrony for me.

[privateone]

Both Synchrony and Comenity started closing most of mine over the past year since COVID started.  Before that, they were generously raising my limits.  No late payments, pay cards off each month or pay more than the minimum.  High income.

Calling to discuss does no good.  They claim it has nothing to do with economic uncertainty due to COVID.

Had bad credit when I first got the cards including a Ch 13 bankruptcy.  That has since fallen off my credit report.  Now, no one will give me a credit card despite less than 30% credit utilization.  When I apply, most solely cite "Too many inquires".

[K-in-Boston]

@privateone while receiving any adverse action is always frustrating and disappointing, do keep in mind that credit-seeking can be a sign of financial distress, and the amount that is tolerable will vary by each lender and by each person's individual profile.  While the decision may or may not have to do with economic uncertainty, Synchrony did certainly make some adjustments to their underwriting policies and have begun to look closer at existing accounts.  The combination of having your limits generously raised by them as you stated along with additional applications for credit signified by the too many inquiries denial reasons can be a red flag, and that's often a signal that it's time to stop applying for new accounts and allow your existing accounts to age.

[Anonymous]

---

@Anonymous wrote:

Synchrony closed my Lumbar Liquidators and Furniture Row accounts with no warning (sent a letter after the fact). I had been a loyal customer and paid these accounts in full. This has been a huge hit to my credit report since losing $11,000 of available credit and reducing the ages of my open accounts. I have had these accounts for years and they both had zero balances upon cancellation.

---

Your open account age will fall, yes, but that's not a scoring metric. Account age takes in every account on your reports, closed or open. Those closed accounts can stay as long as ten years after closure and they'll continue to contribute to all age-related score factors the whole time. While the loss of aggregate limits can hurt in the immediate term, age impacts are likely years away.

[Anonymous]

All of mine was closed over the last week. Started with CareCredit a couple of months ago, JCPenny's last week, then Paypal today. They said the same about exposure and being concerned about my ability to pay eventhough I have always paid more than the min and have never been late. I suspect they are in trouble as an organization, has too much debt and are trying to clear their own books. [Mod cut]

[Anonymous]

Googling found this thread.  Synchrony closed all five of my accounts on 2/28.  Never late, had over 50k worth of available credit.  Ah, well.

I've been trying to scan through this thread; does anyone know how bad this ends up hitting the ole FICO scores?

[privateone]

Yes, I would say you are right and that's a good idea.