Synchrony bank closing accounts due to high risk of non payment?

[FicoMike0]

I suppose we shouldn't be surprised when our unused cl is reduced, a lot of banks never would have given us the high limit in the first place. That doesn't mean we have to like it!

The penfed action may have cascaded to the sync closing. Still, I'd go to annualcreditreport.com and check all three for any sort of fraud. Might be something else going on.

[Anonymous]

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@tehdrizzle wrote:

@UncleB  unfortunately that was my fico that dropped that harshly.

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My guess, and only guessing since there is no clear picture of your current profile, is you were over exposed with synchrony in total limits with a high amount(?) of synchrony cards. Then PenFed Penfed-ed you and spooked Synchrony into a knee-jerk reaction.

I suggest, as others have, don't knee-jerk reaction to their knee-jerk reaction.

Could be helpful and also informative to know reason codes and such from Experian.com and from Myfico about the 70 points.

[coldworld]

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@Anonymous wrote:

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@tehdrizzle wrote:

@UncleB  unfortunately that was my fico that dropped that harshly.

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My guess, and only guessing since there is no clear picture of your current profile, is you were over exposed with synchrony in total limits with a high amount(?) of synchrony cards. Then PenFed Penfed-ed you and spooked Synchrony into a knee-jerk reaction.

I suggest, as others have, don't knee-jerk reaction to their knee-jerk reaction.

Could be helpful and also informative to know reason codes and such from Experian.com and from Myfico about the 70 points.

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My guess is it's due to a spike utilization percentage related to OP losing over $80k in available credit over the last few days. 

[Anonymous]

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@coldworld wrote:

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@Anonymous wrote:

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@tehdrizzle wrote:

@UncleB  unfortunately that was my fico that dropped that harshly.

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My guess, and only guessing since there is no clear picture of your current profile, is you were over exposed with synchrony in total limits with a high amount(?) of synchrony cards. Then PenFed Penfed-ed you and spooked Synchrony into a knee-jerk reaction.

I suggest, as others have, don't knee-jerk reaction to their knee-jerk reaction.

Could be helpful and also informative to know reason codes and such from Experian.com and from Myfico about the 70 points.

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My guess is it's due to a spike utilization percentage related to OP losing over $80k in available credit over the last few days. 

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Yes, that would be a guess and could be helpful and also informative to know reason codes and such from Experian.com and from Myfico about the 70 points.

[firefox100]

This may not help, but I would send letter off to Lowes corp HQ say that you spent 27 thousand dollars in the last several months and paid off your Lowes account and now you got letters from Synchroney  bank saying you are risk and they closed your account. In the letter I would if you can't help in getting credit account reopen you will never spend money again or have kind words about Lowes home improvenent stores. You never know Lowes has dog in this matter, they don't want to lose custmer like you. Good luck.

[SouthJamaica]

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@tehdrizzle wrote:

So I posted the other day about PenFed lowering our credit limit on our powercash and gold cards due to inactivity here: https://ficoforums.myfico.com/t5/Credit-Cards/Penfed-lowering-credit-limits/td-p/6785640/page/2.

In short, we have near perfect credit, PIF every month, have a mortgage, auto loan, 3% utilization on revolving debt, and and we make over 230k per year with scores in the 830-840 range across the board.

Synchrony just sent us a stack of letter saying that we are considered a high risk of non payment and as such they have closed all of our accounts. The largest was a 45k limit with Lowes which we just used and then paid off in 4 months in the amount of 27k for a kitchen remodel. I total our available credit has now dropped by 82k and our scores have dropped by over 70 points. What is going on with these companies and does the "risk of non payment" as a reason hurt my credit further? This is ridiculous!

If this reason hurts it further I may opt to close all of my cards and take that hit rather than let them hit me with a high risk of non payment message.

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That is a real bummer.  Synchrony is a jerky company.

[SouthJamaica]

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@tehdrizzle wrote:

Any idea if having them close the account as a high risk hurts my scores even more? If so I may opt to close all of my remaining credit cards to avoid anything like that hurting and just take the huge hit from having no credit cards or revolving balance.

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The closing of the cards doesn't hurt your scores significantly, unless it makes your aggregate utilization percentage too high.

The reason for the disclosure is of no moment.

I wouldn't close my remaining cards, if I were you.

[JSUB]

I only dealt with them for a hot minute before BJ's switched to Capital One. They struck me as low rent. 

[Spotsy]

Do you have any significant balances on other cards?  For your scores to drop 70 points due to account closings, but you are only at 3% utilization....maybe a card here or there that is maxed?  No derogs?

I know you PIF...maybe reported high balances the last few consecutive months that's artificially driving utilization up, even though you PIF?  Heavy Amex use?  If account balances are under 3%, your FICO should not have moved 70 points....

[Ispendless]

I have several synchrony accounts never late, never above the limits, always paid off or paid more than the minimum, 1 account reduced my limit to whats was charged, my credit score then dropped because it indicated 100% untilization then several synchrony accounts followed suite or closed further reduceing my score and upping my utilization.

    I've never been late on anything and after paying off all my credit cards, "46,000" they reduced my limits to $100.. only synchrony has done this...

      ill be canceling all associated accounts I don't need them or the credit games they play