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Synchrony bank just killing people s credit

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Re: Synchnoary bank just killing people s credit


@vic6string wrote:

1) Any bank that offers you a line of credit is doing so based on the information they have at the moment in time you are asking for it. As things change, their opinion on the offer changes. Imagine you have a buddy that you lend money to for lunch because he never has cash, but he always pays you back. Now imagine that buddy stops coming to work half the time, and you find out he is doing meth. You'd be a little more leery of lending him money. Or lets say that nothing in his life changes, but you lose your job. Still buying his lunch? Situations change.

 

2) Getting a credit line closed or lowered only hurts your score if you have high utilization elsewhere. On my budget spreadsheet, I have all my cards, their balances, and the %utilization. I never aim for a TOTAL utilization under 4%, I keep all of my cards INDIVIDUALLY at under 4%. In this way, even if half my cards (or more) are suddenly chopped tomorrow, my utilization is still 4%.

 

There are many people who think that since they have 100k in credit, they can put 4k on a card whenever they want and not worry about utilization. If you can't pay off the 4k quickly, though, then you shouldn't put it on the card (unless there is a very good reason). I have a 5 card rotation right now, there are a few more cards I plan on getting that will inevitibly make 2 or 3 of my current cards sock-drawer material. I'll throw a few bucks at them once in a while to try and keep them open, but I will not count them in my utilization because once they hit the sock drawer, for all intents and purposes, I have all but cancelled them myself.


Your 1st point is kinda true.

 

Your second point, what's the significance of 4%?  That's Credit While Afraid. 

I see no reason to limit myself to 4%. None. 

 

Number 3...I dont put $4000 (or more) because I have $X amount of credit, I put it because that's what I spent.

Plot twist, it gets paid every month. 

 

For your needs, 4% might do the trick, or you might be needlessly paying between billing cycles, but that's not something that works for many. 

 

But yes, its nice to be able to put any amount without taking a scoring beating over letting balances report. 

 

07/11/2020 Confession time...sometimes I dont put shopping cart back where it should go, and I stole lipstick when I was 11. Used it for drawing (works better than watercolors).
Message 81 of 92
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Senior Contributor

Re: Synchnoary bank just killing people s credit


@SouthJamaica wrote:

@lakerfan2011 wrote:

what is there deal anyways no other bank is doing this i never misssed payment in my credit in years and years and years 


IMHO they are hurting financially and this is a fast and easy (but stupid) way to pretend that their balance sheet isn't as bad as it actually is.


It does make you wonder after things have settled down how they will approach those very people they performed AA on. As some have already stated, they will never do buisiness with them again. Though I suspect that there are people who are willing to welcome them back into their lives. Especially if they're ads easily obtainable as before. 

 

Who here would accept a pre-approvals within 12 months of AA from that very same bank? Or easy SP CLI's?

 

 

Considering a person likely isn't spending upwards of $50K at at least 70% of their store card annually, it's safe to say that they probably don't really need those high CL's Not that it's anyone's place to say as much, it's really none of our business. If it is used for UT padding the banks will find out one day, and act accordingly. Again none of our business. I think people are simply commenting about such practices to warn of possible outcomes they may lead to. Thus if a person is using credit in this manner, it's no fault but their own when the cards start to fall.  

 

I've only had 3 store cards in my life, well 4 if you count the old Bi-Mart card. lol  I was young and first starting out, and they made sense to me at the time. I shopped both there and JC Penny, the later one I did a lot of Catalog ordering due to residing in a remote location. A while later I got a GF and thought it would be cool to have a Harry Ritchie's card.  Those all got closed back in 03. Then many years later I got a Walmart card since we shopped there a lot, and it also could be used online. It eventually got upgrades to the master Card version about a year or so later and still have it to this day.

 

So while i don't totally like store cards I can see their usefulness for others as well as myself at one time. I just don't see the need to have several of them with $20K^ CL's 






Message 82 of 92
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Valued Contributor

Re: Synchnoary bank just killing people s credit

This is why I am hesitant to apply for the Verizon Visa card. I am NOT trying to get screwed by them.




FICO 8 - 07/2020


Message 83 of 92
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Super Contributor

Re: Synchnoary bank just killing people s credit


@1GaDawg85 wrote:

This is why I am hesitant to apply for the Verizon Visa card. I am NOT trying to get screwed by them.


Audentis Fortuna iuvat







Message 84 of 92
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Regular Contributor

Re: Synchnoary bank just killing people s credit

If my store cards were suddenly closed for whatever reason I wouldn't look back at all.
The purpose they served was my initial jump on getting my scores up, At this point they are a nuisance as I have to make sure to make a small purchase once in awhile to keep them active and it's usually stuff I don't want or need..

 

 





Message 85 of 92
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Valued Contributor

Re: Synchnoary bank just killing people s credit

This is a really great thread, and I am enjoying every moment of these discussions about Synchrony, about store cards in general, and about seeking unnecessarily high credit limits.  Keep up the good work, folks!

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Message 86 of 92
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Regular Contributor

Re: Synchnoary bank just killing people s credit


@Remedios wrote:

Your 1st point is kinda true.

 

Your second point, what's the significance of 4%?  That's Credit While Afraid. 

I see no reason to limit myself to 4%. None. 

 

Number 3...I dont put $4000 (or more) because I have $X amount of credit, I put it because that's what I spent.

Plot twist, it gets paid every month. 

 

For your needs, 4% might do the trick, or you might be needlessly paying between billing cycles, but that's not something that works for many. 

 

But yes, its nice to be able to put any amount without taking a scoring beating over letting balances report. 

 


The 4% is just a number I chose for myself. It keeps my scores up, and keeps me out of trouble.

I chose the 100k and 4k numbers for examples just because they were easy numbers to use. Everyone's numbers are different. People said Michael Jordan had a gambling problem because he would bet thousands of dollars on 18 holes of golf, but at the time he was making well in excess of 50 million per year. 20k was the change in his couch.

 

You can chose to keep 60% utilization if you like, but your credit scores will be lower. If you chose to cover that by having tons of available credit that you are never using, it is not in the banks best interest to just leave that out there for your convenience. They gave you 10k, 20k, whatever limit because they expected you to make them money, and depending on the bank doing so with limite risk. If you aren't making them money, or if they feel the risk level has changed (either because of your actions or because of events such as economic downturns), you no longer fit the profile they have for a desired account. They are nor obligated to leave it there for your benefit and no return to them.

Message 87 of 92
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Super Contributor

Re: Synchnoary bank just killing people s credit


@longtimelurker wrote:

@SouthJamaica wrote:

@longtimelurker wrote:

@SouthJamaica wrote:


Thank you for your honesty in disclosing that you are a Synchrony shareholder.

 

As a Synchrony shareholder you have a vested interest in Synchrony's attempting to prop up its plummeting stock price.

 

And no, investors are not expected to know what a company is doing unless the company discloses it in its SEC filings.


OR @CWA1984 could merely be expressing an honest opinion about the matter, both the need (or otherwise) for large unused CLs and syncs actions (whether viewed as cooking the books, or prudent financial response)


I'm sure it's an honest opinion. I didn't say it was otherwise.


Oh, I thought your use of "vested interest" might have implied some type of bias in favor of the issuer.  Apparently not.


All opinions come through the perspective of the person giving the opinion. A person who's already a shareholder and has an interest in the stock price going up, may be approaching the question from a different perspective than another person who might be considering buying the stock.  That one might have a certain perspective doesn't make one's opinion dishonest. This forum member was scrupulously honest, disclosing his or her status as a Synchrony shareholder.


Total revolving limits 648500 (572500 reporting) FICO 8 EQ 725 TU 752 EX 732

Message 88 of 92
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Super Contributor

Re: Synchnoary bank just killing people s credit


@CreditCrusader wrote:

@SouthJamaica wrote:

@longtimelurker wrote:

@SouthJamaica wrote:


Thank you for your honesty in disclosing that you are a Synchrony shareholder.

 

As a Synchrony shareholder you have a vested interest in Synchrony's attempting to prop up its plummeting stock price.

 

And no, investors are not expected to know what a company is doing unless the company discloses it in its SEC filings.


OR @CWA1984 could merely be expressing an honest opinion about the matter, both the need (or otherwise) for large unused CLs and syncs actions (whether viewed as cooking the books, or prudent financial response)


I'm sure it's an honest opinion. I didn't say it was otherwise.


Apropos your "deceiving" point from upthread, you are correct.

 

It's not deception.

 

It's an illusion designed to mask high UTIL of other cards. That's an iron-clad FACT.

 

Let's not sugar coat what many people use high lines of store cards for. How many posts have we read here where people have $15,000-25,000 store lines that they have kept open in the past by buying a soda every six months? The intent is obvious: Pad overall available credit to keep that UTIL % nice and low to bump up FICO scores.

 

What I find a little annoying is all the whining that takes place when these $20k lines are shut down after barely being used for years. Do lenders like Comenity and Sync have an obligation to help folks pad their overall lines and reduce UTIL? Of course they don't.The possibility of mass closure ALWAYS lays in wait. That's the risk you take when using lenders in this fashion. They can yank the rug at any time and you have ZERO say over it.

 

And as I said below: Want that low UTIL back? Pay down those fat balances you were hiding from FICO scoring for so long per those store lines. It's called the responsible use of credit, which should always be a goal of this forum.


I don't see anything being 'masked' and I don't see any 'illusion' in someone's seeking and maintaining higher credit limits than he or she is planning to use.  It makes eminent good sense to me, and nothing is hidden about it, and there are no 'illusions' being created by it.


Total revolving limits 648500 (572500 reporting) FICO 8 EQ 725 TU 752 EX 732

Message 89 of 92
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Established Contributor

Re: Synchnoary bank just killing people s credit


@SouthJamaica wrote:

@CreditCrusader wrote:

@SouthJamaica wrote:

@longtimelurker wrote:

@SouthJamaica wrote:


Thank you for your honesty in disclosing that you are a Synchrony shareholder.

 

As a Synchrony shareholder you have a vested interest in Synchrony's attempting to prop up its plummeting stock price.

 

And no, investors are not expected to know what a company is doing unless the company discloses it in its SEC filings.


OR @CWA1984 could merely be expressing an honest opinion about the matter, both the need (or otherwise) for large unused CLs and syncs actions (whether viewed as cooking the books, or prudent financial response)


I'm sure it's an honest opinion. I didn't say it was otherwise.


Apropos your "deceiving" point from upthread, you are correct.

 

It's not deception.

 

It's an illusion designed to mask high UTIL of other cards. That's an iron-clad FACT.

 

Let's not sugar coat what many people use high lines of store cards for. How many posts have we read here where people have $15,000-25,000 store lines that they have kept open in the past by buying a soda every six months? The intent is obvious: Pad overall available credit to keep that UTIL % nice and low to bump up FICO scores.

 

What I find a little annoying is all the whining that takes place when these $20k lines are shut down after barely being used for years. Do lenders like Comenity and Sync have an obligation to help folks pad their overall lines and reduce UTIL? Of course they don't.The possibility of mass closure ALWAYS lays in wait. That's the risk you take when using lenders in this fashion. They can yank the rug at any time and you have ZERO say over it.

 

And as I said below: Want that low UTIL back? Pay down those fat balances you were hiding from FICO scoring for so long per those store lines. It's called the responsible use of credit, which should always be a goal of this forum.


I don't see anything being 'masked' and I don't see any 'illusion' in someone's seeking and maintaining higher credit limits than he or she is planning to use.  It makes eminent good sense to me, and nothing is hidden about it, and there are no 'illusions' being created by it.


You're certainly entitled to your opinion.

 

Thanks for the spirited discussion.

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