Synchrony Bank closed all of my accounts!

[AndySoCal]

 You opened 3 new accounts in the last 90 days. In addition to that 4 credit limit increases in that in the last 90 days is this correct? If so this may be the cause of Synchronny closing all your accounts.

Here is why I say that. The account closings are more related to a characteristic not you personally. When a consumer asks for new credit accounts and credit limit increases which is new credit in short periods of time that can be omen of trouble in the offing. In a generic sense can be trouble in the offing because they will need that new credit to make ends meets. Something happens and that consumer can longer make the payments etc and it ends badly for the lender and the consumer. Synchronny is seeing the sum total of all the new credit (including cli's) and is wondering why does a consumer need all of this new credit in such a short period of time. The lender's premise is that a consumer applies for only the credit that a consumer needs. From a lender's perspective does this mean there is a large spending spree coming in the future? If so then what happens.

 My suggestion in the future spread out your new account openings and CLI's over a larger period of time. I have opened two new accounts and closed an account in the last 12 months. The new accounts were six months a part. At this point in time no more new accounts for quite a while. Hope this helps.

[Jeffster1]

50% utilization plus seeking new credit likely scared Synchrony.

[EvCrvz]

Jeffster1

Valued Contributor

‎10-26-2024 08:47 PM

Re: Synchrony Bank closed all of my accounts!

50% utilization plus seeking new credit likely scared Synchrony.

With the closures I'll be at 50% util.  I was at 33% prior. 

[EvCrvz]

AndySoCal

Valued Contributor

‎10-26-2024 05:43 PM

Re: Synchrony Bank closed all of my accounts!

 You opened 3 new accounts in the last 90 days. In addition to that 4 credit limit increases in that in the last 90 days is this correct? If so this may be the cause of Synchronny closing all your accounts.

Here is why I say that. The account closings are more related to a characteristic not you personally. When a consumer asks for new credit accounts and credit limit increases which is new credit in short periods of time that can be omen of trouble in the offing. In a generic sense can be trouble in the offing because they will need that new credit to make ends meets. Something happens and that consumer can longer make the payments etc and it ends badly for the lender and the consumer. Synchronny is seeing the sum total of all the new credit (including cli's) and is wondering why does a consumer need all of this new credit in such a short period of time. The lender's premise is that a consumer applies for only the credit that a consumer needs. From a lender's perspective does this mean there is a large spending spree coming in the future? If so then what happens.

 My suggestion in the future spread out your new account openings and CLI's over a larger period of time. I have opened two new accounts and closed an account in the last 12 months. The new accounts were six months a part. At this point in time no more new accounts for quite a while. Hope this helps.

I think you're right.  Lesson learned for sure.  I won't pursue additional sync cards.  

[Jeffster1]

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@EvCrvz wrote:

Jeffster1

Valued Contributor

‎10-26-2024 08:47 PM

Re: Synchrony Bank closed all of my accounts!

50% utilization plus seeking new credit likely scared Synchrony.

With the closures I'll be at 50% util.  I was at 33% prior. 

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Carrying an aggregate 33% is still high, and may raise red flags.

[NoMoreDebt]

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@ElvisCaprice wrote:

Another example of why CC's are not loans one should ever utilize.  Just temporary safer, convenient, rewarding substitutes for cash.  Never carry a balance and life will be good.  Don't allow the issuer (s) to have any power over your credit score.  Lesson learned.

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Ill second this motion.

[unsungivy]

Yeah, you not only raised the "credit seeking" red flag, you lit it on fire, and sent out evites to attend the party.

Synchrony may do things randomly to a lot of people (I'm one of those who avoid them based on the horror stories so far), but in your case it's completely unsurprising. That was... an unwise batch of moves. 🤷‍♀️

[CreditPoor]

Having  high balances on non-Synchrony credit cards could potentially trigger account closures, especially if it affects your overall credit profile. Synchrony, like other credit card issuers, periodically reviews customers’ credit reports and considers their overall debt-to-income ratio and credit utilization, even on non-Synchrony accounts. High balances elsewhere might make them view you as a higher credit risk, especially if you’re approaching credit limits or have large outstanding balances relative to your income.

[SouthJamaica]

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@EvCrvz wrote:

After a successful rebuilding in 2019, I applied for Lowe's and was approved for 2k.  Since then I have opened additional accounts (Amazon (2020), atHome (2021), PPC, PPMC (2022), CareCredit (2022), WalgreensMC (7/2024), LivingSpaces (7/2024) VerizonMC (3 days ago).  Prior to the VerizonMC approval I requested CLIs on PPC, PPMC and CareCredit, each getting approved.  I requested a CLI on Lowe's but was declined.  Earlier this week, I got a letter from SYNC in regards to my LOWES CLI request and they needed to verify my identity so I called and my CLI for 15k was approved!  I was beyond ecstatic for the increase.  The next day, I was in the process of paying my Verizon phone bill when I did the prequal for the MC. It came back prequal for 3.5k so I applied and was approved instantly for 3.5k. I used the card to pay my bill and began to wait for my physical card to arrive. 

This morning I got a notification stating my WalgreensMC and PPMC in my apple wallet were unavailable for use, so I logged into each account and both said closed! I frantically opened the MySync app and sure enough, all of my accounts were closed.  I called Lowe's and LivingSpaces and both said changes reported from TU is why all of my accounts were permanently closed.  Idk how this happened when I've never been late, have perfect payment history, and the only accounts with a balance were CareCredit, Lowe's, and Amazon. 

My utilization is now at 50% so I'm just waiting on myFICO to update. 

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This is typical Synchrony conduct.

[Tiggr]

Even with high utilization, I still think it's insane they would close all without communicating it beforehand or doing any sort of adverse actions like CLDs. I think sync threw the baby out with the bathwater with no concern in the first place.