Master Synchrony Account Closure Thread

[Aim_High]

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@coldfusion wrote:

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@Anonymous wrote:

I just calculated that my total exposure with them was a little over 60k. 

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And what is your average monthly spend across all of your Synchrony cards?

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Sorry to hear of your "balance chasing" @Anonymous,  as it is called when lenders continue to reduce your credit limit as you pay down an account.  Unfortunately, that keeps your utilization calculation high on that account also which can affect your credit score until you pay them off. 

The larger question I would have of @Anonymous is what is his total debt to Synchrony?  If balances have been reduced to 3% above debt on a monthly basis and he started at $60K exposure, it sounds like the debt levels could have alarmed Synch given the current economic times.  I don't support them for arbitrary wholesale closing of multiple accounts in good standing or drastic credit limit decreases on accounts that are being used regularly, as some have reported.  However, a few members have reported carrying debt or other factors that could be more justifiable reasons to CLD or close accounts, even if economic times were more favorable.  

[Anonymous]

Sorry to hear about people getting their accounts closed.

People praising how good Synchrony is perhaps should take a look at them kicking good standing accounts with nothing negative to the curb for no good reason and dragging their credit score with it. Also getting that many accounts closed at once might start a domino effect of other lenders taking notice and lead to more AA. 

[longtimelurker]

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@Anonymous wrote:

Sorry to hear about people getting their accounts closed.

People praising how good Synchrony is perhaps should take a look at them kicking good standing accounts with nothing negative to the curb for no good reason and dragging their credit score with it. Also getting that many accounts closed at once might start a domino effect of other lenders taking notice and lead to more AA. 

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Yes, but.....    There are two "extreme" cases.

1) Person has one Sync card, with say $5k limit.    It gets CLD or closed, which might suck if the card is useful.    But this happens with every issuer, sometimes for the famous "no reason".   This might cause complaints, but not a huge thread on MyFico!

2) Person has acquired 15 sync cards with total exposure with Sync $100+K with almost no use.  Some/all get CLD or closed.

To me, this is part of the easy come easy go view of credit life.    Usually there was no great need for all those CLs, people were happy when they got outsize SLs and/or CLI, but they were no more "deserved" than the later CLD/closure was.  

There is a cost to issuers for keeping open limits, which is why utilization padding isn't something they care about!    The corresponding case on the consumer side is if we paid an AF year after year for a unused card that was pretty meh, because maybe one day we would use it, even though the rewards are much lower than some other cards we have.  (because in the actual case, an issuer doesn't really have a good expectation of a profitable relationship if lots of cards are hardly used).

Now I know that some of the impacted people have regularly used their cards, but probably not at a "reasonable" level compared to CLs.

For me the moral is that if an issuer is very generous with limits at a certain time, when times change for them, things can be reversed....

[MoneyBurns]

As Jasper says,

[Anonymous]

I only used about 20 percent. I kept all of my accounts active I and made more than regular payments. I tried not to use too much and still make purchases. I believe my utilization is now at 40 percent with their reductions.

[Anonymous]

I will rebound from all of this in 30 days. All they did was make me want to improve everything so that I can reduce the risks of this happening again.

[sammydavidjr]

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@Anonymous wrote:

Sorry to hear about people getting their accounts closed.

People praising how good Synchrony is perhaps should take a look at them kicking good standing accounts with nothing negative to the curb for no good reason and dragging their credit score with it. Also getting that many accounts closed at once might start a domino effect of other lenders taking notice and lead to more AA. 

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Lenders never make money when they close an account, so they generally don't close accounts for no good reason. They could be reasons customers don't like, but they are usually fairly legitimate business reasons. In some cases there are even legal changes that force lenders to reduce risk across their portfolios (new accounting standards that were mandated in December 2019 forced Synchrony to account for greater possible losses).

[Aim_High]

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@Anonymous wrote:

I will rebound from all of this in 30 days. All they did was make me want to improve everything so that I can reduce the risks of this happening again.

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Good attitude, @Anonymous. 

Diversity is key and not putting too many of your "credit apples" into one basket! 

[Anonymous]

These were the first accounts that I opened when I started building credit. They just helped me out. I am not looking to open anything new until next year when it will be needed. 

[Anonymous]

• I have obtained new credit including from Sync in the last 6 months
• Sync cards
  • Lowes about 30 days old $1,500 limit
  • B&H about 90 days old $1,500 limit raised to $6,000 limit
• Non Sync
  • New Debt consolidation loan from Credit union 35 days ago $10,000
• Inquiries 
  • Trans Union 2/12/2020
    Experian 5/11/2020
    Experian 5/19/2020
    Equifax 6/22/2020
    Experian 6/22/2020
    Trans Union 6/23/2020
    Trans Union 6/24/2020
    Trans Union 6/26/2020
    Experian 7/9/2020
    Equifax 7/16/2020

Now here is what I think triggered it I got gready and asked for CLI's in the past few months with all of my sync cards.  

I did get B&H raised from $1,500 start to $5,000.

In total this way $55,000 worth of credit limits that was closed with about $5,800 owed.

I am really dissapointed as I use some of these cards very often like

Synchrony Car Credit 

Care Credit

Amazon

Lowes

B&H

Banana Republic

My Paypal Rewards Mastercard

I have made very large payments recently paying off Care Credit and nearly paying off Amazon.

My Credit scores are just over 700 FICO 8 each bureau.

The advice I have that may or may not help others is do not ask for more credit with Sync.

Whle this raises my utilization it's not horrible it's now 28.9% overall utilization.

So frutstrated but maybe my greed asking for more is what hurt me here.