Synchrony Bank keeps cutting credit line.

[AverageJoesCredit]

The late may really hurt but one probably wouldnt as absolutely destroy what you built up. To me its the multiple chargeoffs that are on your report, 3 years plus is still relatively fresh. These are most likely what spooked Synchrony. They see you not paying other credit cards they want to reduce their risk as fast as possible.

Although uh dont want to lose 8 year plus open tradeline, I'd suggest just paying them off and let the chips fall where they may. Those accounts will rem as in up to 10 years or more and if you start now making sure your credit is in tip top shape with no missed payment, in 10 years you will have already strengthened your aaol where as their drop off wont matter sp much. Just my 2 cents. Good luck

[Anonymous]

I could not have said it better myself, AverageJoe.

[kayb]

Thanks...I guess I don’t see any benefit to paying off the cards. About $2500 total. It’s not super expensive. I think I’ll tread water, let my overall credit pick up while doing so, then they prob won’t cut lines a year or two from now. Or I might just pay them. 2 years from now I think I’ll be great and certainly 4

[Remedios]

OP, they have been cutting your lines for 3 years. The only thing that will change is the next 2 years is how much interest you pay them.  

[AverageJoesCredit]

Yes, it's quite possible that if you pay them off now they may leave the accounts alone. If this happens then I couple of months as your credit stabilizes, you can hit them up for some sp cli. Synchrony does forgive, just ask Uncle B ame his famous Lowes balance chasing story. The most important right now is to stop paying ridiculous interest. At their rates, you'll never pay it off with minimums. Hope you reconsider. Just think of the band aid technique, pull it off fast, gonna hurt like heck but then some smooth aloe vera everything will start feeling better

[UncleB]

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@AverageJoesCredit wrote:
Yes, it's quite possible that if you pay them off now they may leave the accounts alone. If this happens then I couple of months as your credit stabilizes, you can hit them up for some sp cli. Synchrony does forgive, just ask Uncle B ame his famous Lowes balance chasing story. The most important right now is to stop paying ridiculous interest. At their rates, you'll never pay it off with minimums. Hope you reconsider. Just think of the band aid technique, pull it off fast, gonna hurt like heck but then some smooth aloe vera everything will start feeling better

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Did somebody say my name?? 

Yep, my Lowe's had a credit line of $1500-ish when I started having problems due to a job loss.  Since the payments were low and there was a store nearby I could run over and make a payment in person (and in cash) to keep it current even when most of my other accounts were falling behind. 

Fast-forward, I was eventually foreclosed (lost most everything) and Lowe's started balance-chasing me down to under $500; I ended up with a weird credit line, something like $473, which happened to be the balance when the 'chasing' stopped.  I continued to pay on it unti it was PIF and I tossed the card in my junk drawer, not even thinking enough of them to bother to close it.

A few years later I got to thinking about it again, and I checked online and the account was still open.  I requested a new card (I didn't report it lost, just 'worn' so the number would be the same) and I started using it again.  When my scores started recovering I was able to get some modest CLIs, and when I got down to only three 'baddies' I was able to get the credit line back to a quite-respectable $10k. 

Once my last baddies were gone I called Credit Solutions and was able to get it bumped to $20k, which was my goal for this card.    At 14 years old, it's also my oldest credit account.  I didn't plan on my oldest account being with Synchrony - it just worked out that way - but in any case I plan to keep it open indefinitely.

TL;DR... Synchrony can be 'fickle' at times, but if you choose to stick with them (or reapply with them) they do forgive and forget, and things can turn out quite well. 

[Anonymous]

I understand you wanting to hold on to Synchrony, your perfect payment history with them. You have reason to be proud of that. And I know we can get attached to odd things, even plastic. But, holding on for another "two or four years," always living in fear of them cutting your balances or closing your remaining cards. Them in control, even as you do everything to please them. ???

If you take the advice given to your question... If you take control... In those "two or four years" that you mentioned, YOU can be in control of your credit life, your cards. Self empowerment is an awesome thing. In life, and in finance. 

Whatever you choose, good luck. 

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@kayb wrote:

Thanks...I guess I don’t see any benefit to paying off the cards. About $2500 total. It’s not super expensive. I think I’ll tread water, let my overall credit pick up while doing so, then they prob won’t cut lines a year or two from now. Or I might just pay them. 2 years from now I think I’ll be great and certainly 4

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[NRB525]

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@kayb wrote:

Thanks...I guess I don’t see any benefit to paying off the cards. About $2500 total. It’s not super expensive. I think I’ll tread water, let my overall credit pick up while doing so, then they prob won’t cut lines a year or two from now. Or I might just pay them. 2 years from now I think I’ll be great and certainly 4

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Sorry to hear about the balance chasing. I've been through it. Some cards got closed, but several remain open today.

If I read between the lines of your comments, it sounds like you assume that they will balance chase you to zero / close the accounts? I would suggest that is less likely than you think. They could close the account right now, if they chose, but they have selected to just reduce the CL.

I would suggest paying off the cards to save that cash from interest cost. Some of the Sync cards may be closed, but it is likely a few will remain open, with small limits. And no interest cost.

Good luck whatever you decide. Keep us updated on progress.

[kayb]

Yes...the fear is they will close the accounts. The reducing credit lines seems a bit of a slap in the face but I want them to remain open. Just a few weeks ago, we paid off a Chevron gas card, had carried a balance mostly for a while...same deal about 9 years old never late, used several times a month. We paid it to zero, the next day they closed it. 

[Anonymous]

OP, how old is your non-synchrony cc? If it's around the same age, frankly it doesn't matter if synchrony closes all of your accounts. The closed 8 year accounts will remain on your CR for 10 years, meaning they'll be 18 year old accounts a decade from now. If your other cc is around the same age, when they synchrony accounts drop off you'll still have your AoOA intact which is the most important age of accounts factor.

I doubt they'd close all of your accounts. Maybe they close 1 or 2, but I think you'd still have at least 1 or 2 remaining anyway. Like mentioned above, even if it was balance chased down to a few hundred bucks, as soon as your profile strengthens some you can bump your limit right back up to where it was or even higher. At that point it really won't matter what you're going through right now as it will be in the past, so choosing to not pay off your cards right away at the expense of Interest really doesn't make any sense. Just a few things for you to think about when making these decisions.