Sync closed 4 accounts!

[GatorGuy]

I have no issue with institutions re-evaluating accounts and shutting them down as needed. Although heads up would be nice when they were able.

I think it is completely unacceptable for institutions to accept CLI and new accounts, some times multiple and then close down all accounts within a week or two. They should have known at the time of applications if there was a credit risk and thus not approved them.

It would also serve as notification to the customer they needed to cool seeking new credit.

[CreditCrusader]

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@GatorGuy wrote:

I have no issue with institutions re-evaluating accounts and shutting them down as needed. Although heads up would be nice when they were able.

I think it is completely unacceptable for institutions to accept CLI and new accounts, some times multiple and then close down all accounts within a week or two. They should have known at the time of applications if there was a credit risk and thus not approved them.

It would also serve as notification to the customer they needed to cool seeking new credit.

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You're forgetting something here:

Synchrony issues those large lines with the expectation that, at minimum, they'll be used nominally. 

Maybe that doesn't mean charging $10,000 to a card with a $20,000 limit, but it likely also doesn't mean charging a pack of batteries every six months, either.

people who use those high CL

store cards in substantive fashion are far less likely to see closures or CLDs than those who are clearly rolling up large limits to soften reported use of other cards. As I said before, lenders like Synch are on to that at this point. Whether we think it's fair or not is immaterial. It's part of their business model now, so buyer beware.

[CreditCrusader]

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@Loquat wrote:

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@Taurus22 wrote:

Well, what I'm thinking is....I learned about credit mainly from this forum. Over the years I've watched and learned about increasing credit limits, reducing utilization, padding utilization, and using overall good spending habits to maintain a stable credit profile. Living within your means, etc....it's all common sense.

The majority of those here who frequent the forum have fairly decent profiles, and those who don't are working their way up. There are some examples here of people who have higher TCL than they will ever actually use. (some well over $1M) Let's be honest, someone with 20 CC's with average limits across their cards of 40K+ per card....I guarantee that the majority of those don't even get close to using 1% UTI each month. If every lender mass-closed accounts due to low UTI% of limits being used each month, none of us would have any cards left.

My personal goal is to have ~10 cards @ $15k per card average for $150k TCL. If I put my monthly organic spend on my cards (excluding home and vehicle) without paying down any balances before statements cut, I will not go over 1% UTI ($1500/mth).....barring any emergency spend that comes up, which would likely still keep me under 2%.  None of my personal cards ever see more than maybe $500/mth, ever. That is a reasonable, responsible goal without having unnecessary padding and without reckless spending, living beyond my means, and putting myself in a hole of debt. But I also PIF each month and treat my CC's like debit cards with perks....I don't carry balances, unless it's on a 0% APR or BT promo.

Now, keep in mind SyncB approves the CLI requests people ask for....they could deny the requests if they didn't want excessive limits. But do they do that? Nope. They hand out excessive limits like it's Christmas....they allow this. Then, if you are keeping your spend at a manageable, nonreckless level.....they cry and take their ball home, because they want to see people in debt to them. That's where they are most likely to see profit. If you don't fit that mold, then they don't want to play anymore. Predatory.

So why do people still insist on playing Sync-Ball?  Who knows....but like I say, we will soon see their posts here. Because how many of them are actually going to spend $10k at Banana Republic each month to keep SyncB happy?

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@Taurus22 with all due respect, you've been here on the forum for a couple of years. A good amount of us have been here for double, triple, and even quadruple that amount of time.  We have the opinions that we have because we've been here long enough to see trends in people, profiles, and lenders. 

Trust and believe that Synchrony is no different than any other lender.  If you think otherwise, stick around here for a few more years and you'll see. 

The reason it seems like Synchrony is doing this more than other lenders is because they offer more cards than most lenders.  And I'll add that folks know if they played the games with Chase, BoA, Amex, etc that they do with a synchrony that the hammer would drop in the same way. 

Go and try applying for several cards with Chase and then email and call them monthly for a CLI you don't need and see what kind of attention all of your accounts get.  

Start applying for random BoA cards on the regular and see what kinds of attention you get. 

Folks aren't willing to play the same game with other lenders that they do with Synchrony because they stand to lose a lot more. I'm guessing folks are willing to play with the CLI button at Synchrony far more than they are willing to play with the Check Spending Limit button over at Amex.  

I bet folks won't call Chase looking for a CLI as much as they're willing to call the back door number at Synchrony.  

Don't kid yourself and think it's all the same because it isn't.  If one plays silly games then they can expect to win silly prizes.  If one treated Synchrony with the same respect they treated Chase we'd see a lot less post like these.  But they don't because they don't value and respect Sychrony the same way they do Chase... and when Synchrony grows tired for whatever reason, they reply in kind.

 The lack of respect can be viewed as mutual.  Folks enjoy saying  after they've been shutdown that they don't care about Synchrony and that it's no big deal and no big loss but the emotions displayed in their post says otherwise.  

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THIS...all of this 👍

[Anonymous]

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@GatorGuy wrote:

I have no issue with institutions re-evaluating accounts and shutting them down as needed. Although heads up would be nice when they were able.

I think it is completely unacceptable for institutions to accept CLI and new accounts, some times multiple and then close down all accounts within a week or two. They should have known at the time of applications if there was a credit risk and thus not approved them.

It would also serve as notification to the customer they needed to cool seeking new credit.

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Sometimes this is just a problem of big orgs having divisions with different goals.   Some underwriting groups want to grow the customer base and will give a card so long as there aren't clear warning flags.   Then later, security/fraud/loss prevention groups do routine follow ups, and generally these groups are the opposite "No-one should get our card unless they really really deserve it!"   and close down when they see too many new cards or whatever.  (Plus, with the delay, they may see new cards/inqs from other institutions appear on the credit report).

Not ideal, to repeat a theme common in this thread: other issuers do this too!   Multiple reports of Chase and others closing a second card once it is determined to be applied for too soon after the other etc.  

[Loquat]

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@GatorGuy wrote:

I have no issue with institutions re-evaluating accounts and shutting them down as needed. Although heads up would be nice when they were able.

I think it is completely unacceptable for institutions to accept CLI and new accounts, some times multiple and then close down all accounts within a week or two. They should have known at the time of applications if there was a credit risk and thus not approved them.

It would also serve as notification to the customer they needed to cool seeking new credit.

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@GatorGuy  I'm guessing most lenders don't give "heads up" because there'd be a good amount of folks who would angrily spend/charge before the hammer drops as a way of "sticking it to them".  Sure, some of us wouldn't but you have to accept that we are a small portion of what makes up credit and credit cards...and I'd be willing to guess that some folks would do exactly what I just described as a way of getting back for the AA action that was on the horizon.  

It's the same reason that companies know to have authorities on stand by if they plan to terminate an employee who has been known to have anger issues.  You can't tell an employee that displays horrible behavior that hey, guess what, we're letting you go at the end of the week...so please don't come in here and harm us all.  It makes no sense and lenders are never going to do it.   The best you can hope for is a CLD as a way of the automated system telling that your spending against your available credit is too low.  That's all the heads up you're probably going to ever get.

As this issue relates to the folks of this forum who have been here for at least 6 months...then we all know better than to constantly bother Synchrony after reaching a crazy level of cards and available credit with them.  But yet some push on....and then cry foul when AA happens.  Why do you think there are so many precautionary warnings about if you're going to apply with Barlays, Chase, be careful that they are a "jealous lender".  Ever think why there are so many post that tell folks don't play with the Check Spending Limit button at Amex.  These stories/post come from data points.  We all know better but play dumb when we do exactly what folks on this here forum suggest NOT to do...and then act shocked when AA happens.

The whole they shouldn't give and take away falls on deaf ears with me because because the forum has data points on most things and this issue is no different.  If you do what the forum has educated you against and something bad happens, I suggest taking it in stride and carry on.  You say "....They should have known at the time of applications if there was a credit risk..." I say that same to forum members who have been here long enough to know better...  "...you should have known at the time you applied there was a risk...".   Again, it works both ways.

[Taurus22]

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@Loquat wrote:

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@Taurus22 with all due respect, you've been here on the forum for a couple of years. A good amount of us have been here for double, triple, and even quadruple that amount of time.  We have the opinions that we have because we've been here long enough to see trends in people, profiles, and lenders. 

Trust and believe that Synchrony is no different than any other lender.  If you think otherwise, stick around here for a few more years and you'll see. 

The reason it seems like Synchrony is doing this more than other lenders is because they offer more cards than most lenders.  And I'll add that folks know if they played the games with Chase, BoA, Amex, etc that they do with a synchrony that the hammer would drop in the same way. 

Go and try applying for several cards with Chase and then email and call them monthly for a CLI you don't need and see what kind of attention all of your accounts get.  

Start applying for random BoA cards on the regular and see what kinds of attention you get. 

Folks aren't willing to play the same game with other lenders that they do with Synchrony because they stand to lose a lot more. I'm guessing folks are willing to play with the CLI button at Synchrony far more than they are willing to play with the Check Spending Limit button over at Amex.  

I bet folks won't call Chase looking for a CLI as much as they're willing to call the back door number at Synchrony.  

Don't kid yourself and think it's all the same because it isn't.  If one plays silly games then they can expect to win silly prizes.  If one treated Synchrony with the same respect they treated Chase we'd see a lot less post like these.  But they don't because they don't value and respect Sychrony the same way they do Chase... and when Synchrony grows tired for whatever reason, they reply in kind.

 The lack of respect can be viewed as mutual.  Folks enjoy saying  after they've been shutdown that they don't care about Synchrony and that it's no big deal and no big loss but the emotions displayed in their post says otherwise.  

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@Loquat  With the same due respect, I have actually been a member here since ~2013/14 when I started my credit build. I had taken some time away, and in 2019 tried to log in, couldn't, and started a new profile. After doing so, a moderator kindly helped me recover my previous User Name, but the account history reset to 2019.  I have been here for 7-8 years and I have seen the same trends you have seen with the same lenders.

And you are correct, SyncB has A LOT of cards....this is their market, their business model....the full list can be found here....

https://upgradedpoints.com/credit-cards/synchrony-bank-store-credit-cards/

So their exposure in the market is obviously more wide-spread. And again, the points you make are an extension of the points I'm trying to make.

A customer has to use common sense with credit regardless of which lender it might be. There are some very aggressive credit-seekers that are members of this forum. Some push CLI limits to levels I would personally never attempt. Some go on app aprees that I would never attempt. And many times they find success in doing these things, other times they only find partial success. And I read some of these posts and my jaw drops because I'm thinking "wow, that was either really brave or really dumb, I can't decide'.  Like you put it,.....playing silly games.

The same common sense must be used for the reasoning behind why that person applied for a particular card to begin with. And this is what really flips my burger. When people apply for a store card, how much spend are they really going to put on that card? Sometimes I really don't think people put any long-term thought into these decisions...

Sure, you may apply for the card at the counter while making your purchase at Lazy Boy. And the salesperson says you can get 10% off your first purchase "today" on those 2 new recliners you are buying if you apply for their credit card. That reduces your total from $1800 to $1620 and it sounds great, so you jump on the offer. But long term, once you've paid off that purchase......how many recliners are you going to have a need for in subsequent months? Honestly?  You were better off putting that on a CapOne QS or a Citi DC.

This applies to any store card. How much Banana Republic can you buy until you're a walking billboard? American Eagle? Macy's? How many times are you really going to use that Sleep Number card after you pay off that $4500 mattress?  It's common sense. I think the few exceptions might be PayPal, Amazon, Sam's Club and maybe Lowes.....because people actually use those cards frequently.....maybe every day.

So, if you're not using your store cards every month (wait, here comes more common sense) then it's probably not wise to request CLI's up to 20k or higher for those cards. And I get it, for those starting out and rebuilding, sometimes 4 out of 6 cards they have are store cards because it was easier for them to obtain. But that's where they have to be patient and wait until their profile supports Prime cards, rather than jack the limits on their store cards to try to slap lipstick on their scores. Build your Prime cards and CU-issued cards, leave SyncB cards at $5000 and below. It's in your best interest.

So, all this being given that it's common sense at play (or lack of, in many cases) I absolutely acknowledge that the customer many times solicits these results. Many times they probably shouldn't have put their stock into store cards to begin with, when they could have probably acquired a Discover card instead.  But devil's advocate, SyncB also allows it. And I personally disagree with the extent SyncB goes to, to remedy a problem that is inherent to the market which they have decided to focus their business model on. They are store cards (they already know they are restrictive and are not likely to get excessive use anyway), they allow the CLI's to occur, they extend the limits.....so why bait customers in just to smack them in the face?

But after reading posts like this.....people here should know by now what SyncB's game is. And what will occur if they copy the same modus operandi. I just personally don't understand why people continue to take that risk with them. There is no gain to be had with store cards long-term, so don't treat them like long-term investments.

[Anonymous]

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@Taurus22 wrote:

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There is no gain to be had with store cards long-term, so don't treat them like long-term investments.

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This is too strong.   Good store cards at stores you use a lot makes at least as much sense as the average credit card.  Target (although the debit card is also a good option), Lowes and Amazon come to mind as good examples of keeper cards. 

[Remedios]

These conversations, when generalized, don't really work because they become referendum on the lender vs. what happened to the person who started a thread. 

I guess it has to be me so..

OP filled BK barely two years ago. While OP may not file again for certain period of time, there is nothing preventing them from charge offs and lates.

Are they going to have those? No clue, but humans and computers cannot predict the default risk by looking at something that hasn't happened yet, they can only look back.

Something triggers it, it can be used, no news, frequent CLI requests etc, and then they decide if risk is worth it or not. 

We've had multiple posters totally perplexed why they cards were shut when they were making "two or three time minimum payment" on thousands in balance, then proceeded to marvel some more on how dare they shut down cards for responsible customers, but there was hardly anything responsible in the behavior prior to shut down.

Debt must look manageable, it shouldn't look like prelude to catastrophe. 

Then you get some with hundreds of thousands in limits from Synch, sitting there, doing nothing.

We all focus on the fact that there are no balances on them, we go with "oh well you weren't using them", but in most instances it was utilization padding because other cards were used/maxed/BT/*My-money-earning-interest* 

Also this kinda ties in with calling it "hobby", "game", and my personal favorite "portfolio"  (I think some should look up definitions of asset versus liability, and credit card is liability at best, since it's nothing but a loan on plastic). 

Well, when what you think your hobby/game is happens to be a business and revenue source for multi-billion dollar corporations, they are not going to act like it's hobby or a game.

They will do anything at their disposal to prevent potential loss, or expand their business by not doing business with those who don't want it, and giving it to those who do. 

I really don't know what we're supposed to say in this situations other than "Please don't carry entire Mall of America in your wallet" or "not every purchase you make should end up on a brand new card with deferred interest" 

Total lol on "others don't do this" 

Amex calls some to make a payment on charge card before balance is due because someone had a student loan late six years ago. 

Discover ain't cuddly bear, they are one of the first to start balance chasing, and definitely the first one to sue. 

BoA is in constat twitch state, from DDA to cards. 

Chase, not only did they care what you did before applying for their cards, they also care what you do after you apply for their cards, and how many of their cards you attempted to open. 

Every lender does it, it's just easier to paint Synchrony as evil empire and show disdain because of their association with store cards as if that's somehow the worst thing in someone's wallet while simultaneously posting about "oh $1000 amex approval, glad I got my foot in!!!"  and treating Synch limits like garbage because they were never meant to be used. 

Full disclosure, I don't like Synchrony and I don't have any of their cards. 

[Taurus22]

@Anonymous  You're right, it's a bit strong. I was mainly referring to cards issued by SyncB since that is their market. Target is one of those exceptions (but they are TD Bank), as are Amazon and Sam's Club....those are naturally going to see more use.

[GatorGuy]

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@Anonymous wrote:

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@GatorGuy wrote:

I have no issue with institutions re-evaluating accounts and shutting them down as needed. Although heads up would be nice when they were able.

I think it is completely unacceptable for institutions to accept CLI and new accounts, some times multiple and then close down all accounts within a week or two. They should have known at the time of applications if there was a credit risk and thus not approved them.

It would also serve as notification to the customer they needed to cool seeking new credit.

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Sometimes this is just a problem of big orgs having divisions with different goals.   Some underwriting groups want to grow the customer base and will give a card so long as there aren't clear warning flags.   Then later, security/fraud/loss prevention groups do routine follow ups, and generally these groups are the opposite "No-one should get our card unless they really really deserve it!"   and close down when they see too many new cards or whatever.  (Plus, with the delay, they may see new cards/inqs from other institutions appear on the credit report).

Not ideal, to repeat a theme common in this thread: other issuers do this too!   Multiple reports of Chase and others closing a second card once it is determined to be applied for too soon after the other etc.  

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To me it doesn't matter if it's Sync, Chase or whoever. I understand the reasons for how/why these different departments allow this to hapoen. But it's bad business to grant new accounts and CLIs only to close all accounts in a week or two.