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Synchrony cutting and closing every single one of my accounts...

Community Leader
Valued Contributor

Re: Synchrony cutting and closing every single one of my accounts...


@imaximous wrote:

@HeavenOhio wrote:

@NRB525 wrote:

Can you list out your cards, which bank and what the limit is on each, and how much the last statement balance reported (not what it is today). 

30–40% in and of itself isn't likely to be be an issue if your statements cut at that level and you pay the statement balances in full. However, if you revolve that balance, charge some more the next month, and only pay down to 30–40%, banks are going to see risk.


I have a question about this. How do banks know whether you're revolving a balance or not? Let's say, I charge 40% of my CL, then pay it all off after statement cuts and balance gets reported. Then, next month, I charge about the same or maybe more, and so on. Always PIF after balance gets reported. Is there somewhere in the reporting system that tells banks or their computers that you're paying in full to avoid any AA?


A bank knows exactly what you're doing with its own cards. Lenders may or may not be able to tell what you're doing with other banks. The structure to be able to tell whether you're revolving balances or paying in full is built into credit reports. But because many banks don't report that information, those fields frequently end up being left blank.

 

What will be seen, however, is your current utilization with all lenders. And because your lenders soft-pull your reports regularly, they can paint a picture of your utilization patterns over time.

Message 41 of 53
Established Contributor

Re: Synchrony cutting and closing every single one of my accounts...


@tidegirl wrote:

@imaximous wrote:

@HeavenOhio wrote:

@NRB525 wrote:

Can you list out your cards, which bank and what the limit is on each, and how much the last statement balance reported (not what it is today). 

30–40% in and of itself isn't likely to be be an issue if your statements cut at that level and you pay the statement balances in full. However, if you revolve that balance, charge some more the next month, and only pay down to 30–40%, banks are going to see risk.

 

 


I have a question about this. How do banks know whether you're revolving a balance or not? Let's say, I charge 40% of my CL, then pay it all off after statement cuts and balance gets reported. Then, next month, I charge about the same or maybe more, and so on. Always PIF after balance gets reported. Is there somewhere in the reporting system that tells banks or their computers that you're paying in full to avoid any AA?


No. There is no memory of balances at all in the FICO system. All it shows as far as that goes is what your current balance is. (ETA: or I should say, what your current reported balance is.)


That's what I kinda figured, but I wanted some confirmation. I gotta make sure I stay off the radar now because a couple of months ago, I started using the PP Business Debit and the PP 2% as funding backup for a total of 3% cashback. My charges on it have gone up to 5k to 6k per month and PIF. Problem is, my CL on the PP 2% is only $10K so utilization is kinda high on the card. Overall, I'm fine because I have a decent amount of total CLs so I'm never over 4% total util. I'm just worried about that card, so I'm gonna have to pay it before statement cuts.

BofA | Barclays | Cap One | Chase | Citi | Discover | PenFed | Synchrony (Lowe's, Amazon & PayPal 2% MC) | US Bank
Message 42 of 53
Established Contributor

Re: Synchrony cutting and closing every single one of my accounts...


@HeavenOhio wrote:

@imaximous wrote:

@HeavenOhio wrote:

@NRB525 wrote:

Can you list out your cards, which bank and what the limit is on each, and how much the last statement balance reported (not what it is today). 

30–40% in and of itself isn't likely to be be an issue if your statements cut at that level and you pay the statement balances in full. However, if you revolve that balance, charge some more the next month, and only pay down to 30–40%, banks are going to see risk.


I have a question about this. How do banks know whether you're revolving a balance or not? Let's say, I charge 40% of my CL, then pay it all off after statement cuts and balance gets reported. Then, next month, I charge about the same or maybe more, and so on. Always PIF after balance gets reported. Is there somewhere in the reporting system that tells banks or their computers that you're paying in full to avoid any AA?


A bank knows exactly what you're doing with its own cards. Lenders may or may not be able to tell what you're doing with other banks. The structure to be able to tell whether you're revolving balances or paying in full is built into credit reports. But because many banks don't report that information, those fields frequently end up being left blank.

 

What will be seen, however, is your current utilization with all lenders. And because your lenders soft-pull your reports regularly, they can paint a picture of your utilization patterns over time.


Right. Synch knows how I pay their cards, but I was worried about other lenders seeing it as increased risk. Thanks for the feedback!

BofA | Barclays | Cap One | Chase | Citi | Discover | PenFed | Synchrony (Lowe's, Amazon & PayPal 2% MC) | US Bank
Message 43 of 53
Highlighted
Established Contributor

Re: Synchrony cutting and closing every single one of my accounts...


@imaximous wrote:

@tidegirl wrote:

@imaximous wrote:

@HeavenOhio wrote:

@NRB525 wrote:

Can you list out your cards, which bank and what the limit is on each, and how much the last statement balance reported (not what it is today). 

30–40% in and of itself isn't likely to be be an issue if your statements cut at that level and you pay the statement balances in full. However, if you revolve that balance, charge some more the next month, and only pay down to 30–40%, banks are going to see risk.

 

 


I have a question about this. How do banks know whether you're revolving a balance or not? Let's say, I charge 40% of my CL, then pay it all off after statement cuts and balance gets reported. Then, next month, I charge about the same or maybe more, and so on. Always PIF after balance gets reported. Is there somewhere in the reporting system that tells banks or their computers that you're paying in full to avoid any AA?


No. There is no memory of balances at all in the FICO system. All it shows as far as that goes is what your current balance is. (ETA: or I should say, what your current reported balance is.)


That's what I kinda figured, but I wanted some confirmation. I gotta make sure I stay off the radar now because a couple of months ago, I started using the PP Business Debit and the PP 2% as funding backup for a total of 3% cashback. My charges on it have gone up to 5k to 6k per month and PIF. Problem is, my CL on the PP 2% is only $10K so utilization is kinda high on the card. Overall, I'm fine because I have a decent amount of total CLs so I'm never over 4% total util. I'm just worried about that card, so I'm gonna have to pay it before statement cuts.


Since you are PIFing each month, an option is to pay it down a few days before the statement cuts so a lower balance is reported.  Nevermind, I didn't read through to the last sentence. Cut me some slack today, I'm sick. Smiley Happy



Giving up on the images for now

Stepped out of the garden 10/9/16

Message 44 of 53
Community Leader
Valued Contributor

Re: Synchrony cutting and closing every single one of my accounts...


@imaximous wrote:
Right. Synch knows how I pay their cards, but I was worried about other lenders seeing it as increased risk. Thanks for the feedback!

Synchrony is one of the banks that reports full payment information. Or at least they do with CareCredit. Other lenders could tell exactly what my payment patterns were with that card. In my case, I was carrying a promo balance. From the report, you can tell that I was paying it down substantially each month without making any new charges.

 

With this information being so spotty from bank to bank, I have to wonder how much lenders rely on it. It's very much a hit-or-miss situation.

Message 45 of 53
Moderator

Re: Synchrony cutting and closing every single one of my accounts...


@pipeguy wrote:

@fltireguy wrote:
With this scenario from Sync, the best bet is to call them and close the cards that are being balance chased.
This will do 2 things. First, the card will show as closed by consumer, which, on a manual review, could possibly look better. Second, it will fix the utilization issues that go with the balance chasing. When you close a card with Sync, the credit limit that will continue to show on your reports will be the last limit before you closed it. They will NOT lower the limit on a closed account. They will only lower it on an open one. The cards will probably end up being closed by them, you might want to make that pre emptive strike and close them, and salvage your utilization at least


While they will not "lower" your limit per se, all of these accounts will continue to show 100% utilization until paid in full. Available credit only reports on open accounts. I personally close any account I get balance chased or CL reductions on, but I have a ton of cards and can afford to close cards, not everyone has that option. 


Although @fltireguy mentioned it specific to his card on an earlier page, I just want to echo that there are several different ways that closed accounts do or do not factor into utilization and that will depend on how the lender reports the card.  The most common, and as is the case with Synchrony, is that the limit at the time of closing and the current balance will be reported, factoring into individual and overal utilization just as if it were still an open account.  Once it reaches a $0 balance, neither the balance nor the credit line are factored in.

 

I'll also be the 53rd person to echo that OP should get a full copy of all three major credit bureau reports ASAP (and possibly some of the others that some lenders use in addition to Experian, Equifax, and TransUnion).  Somewhere there appears to be negative credit information; whether it's really yours or not doesn't matter to lenders.


Message 46 of 53
Regular Contributor

Re: Synchrony cutting and closing every single one of my accounts...

I really wish the OP would return and provide us an update....OP?  Are you there?  

Message 47 of 53
Regular Contributor

Re: Synchrony cutting and closing every single one of my accounts...

Just to add to this thread... I have 4 Sync accounts (3 store + 1 reg CC)

 

Walmart - Opened in 4/2016 SL $700 > CL $6000 (last CLI 6/2016)

Amazon - Opened in 4/2016 SL $800 > $3500 > $5000 > CL $10000 (last CLI 4/2018)

Lowes - Opened in 6/2016 SL $700 > $6000 > $9900 > CL $13900 (last CLI 4/2018)

Marvel MC - Opened in 7/2017 SL $1500 - no change (last req in 4/2018)

 

The Walmart card hasn't had much use in the last year and the Lowes was last used in January. Amazon & Marvel are used frequently. Just got the Experian alert that the Walmart was decreased to $1524. My total utilization is just under 9%, and my utilization on Amazon & Marvel were both under 9% as of last statement as well. TU score has fluctuated between 710-730 in the last 6 months and there have been no big changes in my credit.

 

Maybe they disliked me requesting CLI on a card I frequently use (Marvel) or wanted to get my total exposure closer to $25K (it's currently at $25424 with the CLD.


Started 2014 - EX: 498, TU: 501, EQ: 502... As of 7/1/18 - EX: 714. TU: 730, EQ: 705
Message 48 of 53
New Contributor

Re: Synchrony cutting and closing every single one of my accounts...

I'd posted about my own experience with this too a while back but they started balance chasing me citing high utilization which was at the time I'd say no higher than 50% and after slashing my limits (which I admit I was too heavily dependent on for overall util) made my util REALLY spike which drove my scores down quite a bit. I didn't have any negatives on my reports that weren't on there when I first got the cards. I'm still working on paying everything down but now that my scores have started to recover I haven't requested any CLIs for any of their cards and they've since stopped balance chasing me. I am saving my Amazon and Walmart balances for last though as I use those the most and don't want them to be cut any further, so I'm only paying the minimum on those accounts until everything else is showing 0.

Message 49 of 53
New Visitor

Re: Synchrony cutting and closing every single one of my accounts...

Hi! Not guaranteed the solution but I've heard of this before and was told it may be you giving them permission to see your detailed reports through their "credit monitoring" programs. Cancel all your memberships and remove permissions with those banks. Ive done so and only kept the membership going on 1 consistent credit card of mine that hasnt done any funny business like cutting my limits. All the cards I had fico score subscriptions with, lowered my limits atleast twice before I cancelled. Those banks were Barclays (1 card) and Bank of America (2 cards). My friend had positive results with this after Citi and Barclays cut his limits 3 times. Bank of America hasnt cut my limit again since so fingers crossed. Hope this helps.

Message 50 of 53