Random question on if another bank can request for my credit card to be closed.

[junior88]

Ok, not sure if this is the proper area to post this but here goes.

So I had some medical stuff done and my insurance didn't cover it all over the past 1.5 years. I had to put $6500/$7000CL on my Wells Fargo CC. I also put some on my Wells Fargo LOC I have. I've spoken to a credit union in town here and they are willing to use my car to secure the loan to pay those 2 accounts in full. They will treat it as a car loan and my APR will be like 3.25%. So that was a lot better than the 19% on my WF CC. They also said they would send a letter to each account to have them closed up. Is that normal procedure? Can that be done?  It doesn't really matter to me, I only used those 2 accounts for these medical bills anyway. And before anyone asks, my car is new enough and paid off that I will not get backwards on it. It even has a full warranty up to 100k miles. So the car will last.

Any advice would be great! Thanks for reading.

If anyone has any better ideas on how to get rid of this debt in a better matter, I'm open to hear them. I was just looking at the APR and didn't think I could really find a better option.

[rootpooty]

what doesnt make sense is them requesting the accounts be closed. did you hear that from them right? if you are securing a loan with them using your car title at which seems a good rate then i see no reason why they would want your cc tradeline to be closed. if thats the case find another lender.

[junior88]

Yes, my loan officer has said that two or three times. That once it is paid in full that they will send letters to close the two accounts. I mean I'm sure they can but I'm thinking they have not legal right to request that so I would think Wells Fargo wouldn't honor the request?  That's what I'm wondering. I have checked with another bank and they wouldn't treat it as a car loan so I can't get anyone to compete with the rate. The rest will want 10% or higher even with the car making it secured.

[rootpooty]

did they tell you why they want the accounts closed?

[Anonymous]

I have seen this before.   Since they are consolidating the debt, they don't want you to charge these cards back up and be in worse debt.   They can make it part of the deal, although my guess is you will have to sign the letters they write.

[rootpooty]

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@Anonymous wrote:

I have seen this before.   Since they are consolidating the debt, they don't want you to charge these cards back up and be in worse debt.   They can make it part of the deal, although my guess is you will have to sign the letters they write.

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this is what i was thinking. its for the lenders comfort

[junior88]

Ok, I just wasn't sure how it would work. They never said anything about me signing the letters, just that they would send them. That's why it wasn't making a lot of sense to me. It will suck as it will put a big dent into my open credit lines. It will be $16000. I do not owe that much now but they said they would close them both.