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Total Rewards VISA (Comenity)

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Moderator

Re: Total Rewards VISA (Comenity)

Just a friendly reminder to please remember to keep your posts FSR (Friendly, Supportive, and Respectful) per the TOS of this website.

http://ficoforums.myfico.com/t5/Credit-Cards/Forum-Etiquette/m-p/2797115

Message 11 of 20
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Valued Contributor

Re: Total Rewards VISA (Comenity)

What happened to you is known here at the MyFICO forums as balance chasing.  Pretty much every lender will take this type of action if they feel they are at risk.  I'd say it is a fortunate mistake that you came to these forums to complain but might actually learn something about how credit card issuers work that could help you in the future.

 

There are a number of things that negatively impact your credit.  People like to focus on inquiries but thes have relatively small impact.  Obviously missing payments and defaulting are huge factors, but they are not the only things.  After missing payments, maxing out cards and available credit are among the riskiest bahaviors from the persepctive of the lender.  This is appears to be the first gap in your knowledge because you focus on the fact that you never missed any payments (good), but gloss over the fact that you had really high utilization for a really long time (risky).

 

The second thing you seem to be confused about is that they should have communicated with you before decreasing your credit limit.  That is something that lenders (all lenders, not just commenity) will never do.  If they spot risky behavior, the last thing they want to do is to alert a borrower that they look risky - that would just prompt a borrower who actually is at risk to max out their limits.  What lenders actually do is balance chase, reduce limits and/or close accounts to minimize their risk.  All lenders do this, though each will become skittish about different activities.

 

Based on your story, I'm going to guess that you have little to no other available credit; so either this Total Rewards card is your only card, or if you have other cards they are already maxed out.  This means that your utilization has been through the roof for a really long time.  If you do in fact have other cards, what you really need to worry about is your other lenders taking action against you at the first opportunity.  And let's be honest, if you need to max out all of your available credit for a vacation, they are probably saving you from yourself.

 

Here's some general credit advice that's pretty common around these forums.  Never miss a payment and pay in full every month if you can.  If you're not able to do that keep your utilization below 10% on each card if possible and if you're not able to do that then under 30%.  Diversify your accounts with many different lenders.

Message 12 of 20
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Super Contributor

Re: Total Rewards VISA (Comenity)

I guess no one read the part where he said his ex wife maxed out his cards. He carried high balance but paid monthly. So when he got his bonus. He made a 10k payment. Then boom. Cld just like that. I think I would just have paid like 30% of balance and kept the cash. If I had carried balance for that long. No reason to rush to pay it off st this point.
Message 13 of 20
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Valued Contributor

Re: Total Rewards VISA (Comenity)


@srmcglothlin wrote:

To mean machine. I carried a $10k balance from a low interest balance transfer promo. I didn't gamble and lose $10k. I pod it off with a bonus I received from work with the intention to use the card for vacation travel and then pay off the balance with the remainder of my bonus. I'm updet because I lost $15k cash flow right before going on vacation.


At this point you may just want to review some of the posts here and elsewhere about balance chasing for furture reference.   Also carrying credit card balances can be devastating especially if they are large.   Work on your profile and get cards that give you a 0% offer for the times you do carry a balance which I do from time to time but these are on cards with a 0% promo...........not a low interest promo.    Using a credit card as cash flow is not what they were intended for even though some do use them as such.  Work on getting a line of credit for situations where you need to access funds........even then it shoud be short term.    

Message 14 of 20
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New Visitor

Re: Total Rewards VISA (Comenity)

I agree! Do not do business with these people. They have no customer relations at all. You will never get a finance charge removed for any reason whatsoever. They are the worst to deal with. Move on there are friendlier business out there.

Message 15 of 20
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New Visitor

Re: Total Rewards VISA (Comenity)

Please let me know if there are any other places on the web to complain about this company.

Thanks,

Danny

Message 16 of 20
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Super Contributor

Re: Total Rewards VISA (Comenity)

Unfortunately, while you can complain, there really isn't much that can/will be done. Creditors are free to assess risk and adjust limits or close accounts at any time. They will cite this clause when you complain. Carrying a large balance for a long period, whether due to your own spending or not, signals risk to lenders and this "balance chasing" isn't uncommon.

 

I agree though in general Comenity isn't the best and certainly they aren't known for being flexible or accomodating, so I wouldn't waste too much effort trying to argue with them. Move on to better lenders and products (IMO the TR Visa is nothing special anyway).

Message 17 of 20
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Established Contributor

Re: Total Rewards VISA (Comenity)


@azdananderson wrote:

I agree! Do not do business with these people. They have no customer relations at all. You will never get a finance charge removed for any reason whatsoever. They are the worst to deal with. Move on there are friendlier business out there.


You may want to note that most (if not all) credit card companies charge finance charges, and very few will remove them without a good reason--those who do will usually do it automatically (i.e. if you pay on the statement processing date). 

 

Every single bank and credit card company on the planet has plenty of people who will say they suck, they're evil, they're "the worst to deal with," etc. 

 

And any credit card issuer can, and has the right under the contract you signed to get the card to, increase or decrease your credit limit and cash advance limit, close your account, place limits, refuse charges, charge interest and fees as disclosed in their T&C, etc. Few banks or even credit unions will pursue "friendliness" over financial stability and even profits. If you find one who does, let people know. Smiley Happy 

12/29/2015 669/696/706
01/10/2016 698/711/730 but still to and fro a bit

Climbing to 700 and beyond. It's too cold for gardening.
Message 18 of 20
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Super Contributor

Re: Total Rewards VISA (Comenity)

Wow. The hard cold truth. Take it ez.
Message 19 of 20
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Senior Contributor

Re: Total Rewards VISA (Comenity)

This thread is an interesting read, especially since Comenity actually did a CLD rather than flat out closed the card. There are a lot (!) of threads on MyFico concerning the ease of getting Comenity cards through the "cart trick" and almost as many of Comenity shutting accounts down typically with the excuse of "too many inquiries" which in many cases is total nonsense (I'd rather use a stronger word) including in my case.

 

Rather than paste a copy of my TR history and unjustified closure again (no high carried usage, no missed payments, after 21 months of use), I'll just say lenders like Comenity and Barclays are not like most lenders (much more skittish than most) - you have a choice as to who you do business with. I refuse to be treated as "guilty" without cause and refuse to do business with skittish card issuers, my choice and I'm happy with that choice. 

Message 20 of 20
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