Merrick Bank Closed My CC in good standing

[Anonymous]

I had not had a cc in years. Went through a bankruptcy in 04/09. Last Dec. received an app from Merrick Bank. 650 cl. I have never been late. Usually paid more than min. Aug. 22 They raised my limit to 850. Aug 30 they closed my account stating that I had opened other accounts. When I called they said it was right in the contract yhat they could close at any time.If icould afford it I would pay the remaining 473 off right now, but I am still making payments, as much as I can on time.

[Anonymous]

Yes, virtually all CC contracts say that the banks can terminate the contract at any time. They have the power, and you can't do anything about it.

It seems though that they see that you are already struggling with such a small balance. They are worried that you can't even pay off those $473 at once. They care less about your faithfully making small payments than about recouping the whole debt from you. $500 isn't much but it is a lot for those who owe it and can't repay it. It sucks. I hope you can pay the balance off soon so that it will remain as a good account on your reports and that you will save interest by doing so!

Also, you've been making payments consistently for 10 months. That might be good progress for you (depending on your credit past) but it means little to nothing for most banks. Making payments on time for a year indicates future solidity as a borrower. Making payments consistently for years shows that you are a good repayer of credit.

[Anonymous]

Hi literae,

Welcome!

Sorry to hear about Merrick.  Unfortunately, high utilization can result in AdverseAction - such as you've experienced.  It can be a little confusing (and weird) when they up your CL and then close you a week later.  I also learned this the hard way.  I remember years ago calling my card asking for a CL.  I had never been late (that was my only measure of how well I was doing on the card).  Boy was I surprised when the CSR told me I wouldn't receive a CLI due to the fact that I usually only paid the minimum and my balance was high.  Who knew?  Luckily the CSR was very patient with me and taught me to use the card but PIF or keep a very small balance reporting on the card even if I used it a lot during the reporting period.  I was a little shocked at the time. 

And Merrick may have softed your reports.  Either utilization on their card, or the resulting FICO drop that comes with high utilization, or activities on other accounts (or a combination of all 3) may be what spooked them.

The good news is that this account will still report for ten years after closing - helping your AAofA.  Do you have any other open CC's?

[jackig64]

Hi, I was also recently closed by Merrick.  I too was in great standing NEVER Late and had just received a CLI from 750 to 1050.  Two months after the CLI I was CLOSED.  I also got the same answer, "we can if we want".  In the end I am glad that it was closed, as my Juniper/US AIR is growing nicely.  I will also be closing my First Premier in the next month or two.  My "glitch" for closing accounts are work expenses, as I don not have a Large enough CL on one card to support what I may need.

[GB44]

Sorry to hear about Merrick Bank closing accounts........but in the end it's their loss.

Take pride in knowing that you are impacting their bottom line because this forum can spread the word and persuade others not to consider their products.

I would rather have a card that is going to grow with me........not leave me stranded without warning. 

[boomhower]

Merrick just doesn't make sense.  I've been in a similar boat to the OP, making minimums for the last several month with a balance running close to the CL.  PIF the balance last month and this month they gave me a CLI. 

[tcbofade]

I've noticed this with Merrick as well.  I have a high util rate, but if I make them a large payment, they generally increase the credit limit.