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@Anonymous wrote:Well, now that I've established some credit worthiness, it looks like I may want to pare down my synchrony accounts.
If there is no AF on the cards, it is usually not advisable to close them. The loss of credit limits will not help your scores, and might harm them. Some might think the closed by consumer remark on a card is better than letting the issuer close them, but I have seen no real evidence that it is treated any differently. I think...closed is closed, no matter who closes them. Having said that, I have occasionally closed dormant cards just to keep from having to keep monitoring them for fraudulant activity and such. I did not see any score drops by doing so, but I still had very high aggregate limits with low utilization. If the loss of those existing credit limits would have had a negative impact on my utilization, I would not have closed them. I would strongly advise that the impact of the credit limit losses be carefully considered prior to closure.
I can't believe Synchrony bank. I had about 25 credit cards with them and everything has been closed as of yesterday. Have an 800 credit score, never been late, am employed as a doctor, and make over $425k per year, and just like that, everything closed. Unbelievable. All of my Synchrony store cards (Amazon, PayPal, Sam's, Care Credit, BP Amoco, etc.). Is Synchrony going out of business?
@donna216 wrote:I can't believe Synchrony bank. I had about 25 credit cards with them and everything has been closed as of yesterday. Have an 800 credit score, never been late, am employed as a doctor, and make over $425k per year, and just like that, everything closed. Unbelievable. All of my Synchrony store cards (Amazon, PayPal, Sam's, Care Credit, BP Amoco, etc.). Is Synchrony going out of business?
They have become quite concerned with those who have a lot of exposure with them. It sounds like you fall into that category. Has anything changed on credit profile. Derogs? Higher utilization? More accounts reporting balances? New opened accounts?
Sorry about the closures. Diversify between many lenders. Synchrony is a lender that you don't want to hitch all your accounts on.
@donna216 wrote:I can't believe Synchrony bank. I had about 25 credit cards with them and everything has been closed as of yesterday. Have an 800 credit score, never been late, am employed as a doctor, and make over $425k per year, and just like that, everything closed. Unbelievable. All of my Synchrony store cards (Amazon, PayPal, Sam's, Care Credit, BP Amoco, etc.). Is Synchrony going out of business?
Sorry to hear about your 25 cards. No, SYNCB isn't going out of business.
How much exposure did you have with the 25 cards/accounts with them? Where you using all 25 on a consistent basis or periodically (i.e. monthly)?
Btw, it doesn't matter whether you're a doctor making a 6-figure income or a retail or service employee with a modest income, SYNCB monitors or targets a variety profiles for whatever (unknown) internal factors and that's the current state of affairs for the past year or so.
sorry to hear about your cards - how many other cards do you have left?
exposure is the only issue - there is a reason this thread is 100 pages long
most of us that were impacted had good scores and no late payments
@donna216 wrote:I can't believe Synchrony bank. I had about 25 credit cards with them and everything has been closed as of yesterday. Have an 800 credit score, never been late, am employed as a doctor, and make over $425k per year, and just like that, everything closed. Unbelievable. All of my Synchrony store cards (Amazon, PayPal, Sam's, Care Credit, BP Amoco, etc.). Is Synchrony going out of business?
Welcome to My Fico Forums, @donna216. But I see you've been a member since 03/13/2008 so you may have set a new record for joining and lurking for 13 years before your first posting!
As discussed upthread, Synchrony started a wave of these shutdowns last year when the economy tightened during the early days of the pandemic. It's risk mitigation. Other lenders have done it also but they've been the most prevalent. It's happened to members with much lower scores than yours, probably due to the perceived risk. But it's also happened to members with high scores who had not used those credit limits much if any recently.
Hopefully, those 25 cards didn't make up the bulk of your credit limits and won't have a huge impact on scores. Still, this is another example of why purposefully diversifying your credit limits among many different lenders is a good insurance policy from a mass shutdown. From my experience, store cards are much more likely to get shutdown for non-use than major bank cards. Besides diversifying, keeping store cards as a minority of your overall credit lineup is wise for that reason.
In some cases, we've had members able to contact the lender about these shutdowns and reopen their accounts. You might consider that if they are still valuable to you. (ETA -Corrected 04/15.) Good luck!
They closed all of my accounts yesterday too! (Banana Republic Visa - $8k limit; Lowes - $17k; owe $3500 (fixed interest), Paypal Mastercard $8k; (just paid off $48 balance), Paypal Credit - $4k, Amazon Store Card - $6k; owe $337 (0% interest) and Rakuten MC - $11360 limit
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I have been paying off a lot lately. Score is around 700. SO WEIRD!
And my Rakuten $11360 limit
sorry to hear - but it's not weird if you read some of the previous 99 pages.....
you had close to 5-7 cards and $40k+ exposure which is around where most of the mass shutdowns happened
I started going through all of the previous replies and you are absolutely right!