What happens if creditor closes account ( its paid in full)?

[orestrus]

Hi, due to no fault of my own, the Crap1 decided to cancel my account. For some reason they asked me to verify my identity, i complied with their request. I guess something had spooked them and they cancelled my account. Its paid in full, no lates or anything like that. Im sure ill get a notation "closed by lthe lender" on my CR. How is it damaging to credit report?

[Anonymous]

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@orestrus wrote:
Hi, due to no fault of my own, the Crap1 decided to cancel my account. For some reason they asked me to verify my identity, i complied with their request. I guess something had spooked them and they cancelled my account. Its paid in full, no lates or anything like that. Im sure ill get a notation "closed by lthe lender" on my CR. How is it damaging to credit report?

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Sorry to hear that.  I have never heard of CAP 1 cancelling accounts so something must really have worried them about your profile.  Even if the account is closed by a creditor, it is not damaging to your credit report unless the amount closed really affects your utilization.

Do you call to inquire if the account can be re-opened?

[elim]

not at all unless every lender does it at the same time.  many of us have the notation "closed by grantor" without issue. Some even sock their cards until they get closed.

[Anonymous]

Shouldn't matter in the slightest. 

[Anonymous]

Wow I would call and find out why. If it was a identity issue and you took care of that (and proved your identity) I would a little upset that they closed it after doing what they said to do. Only because there was no answers as to why. Did they leave your other card open?

But no it shouldnt affect your report /score at all especially since the card is paid off. It will still help with your AAOA. It will probably say "closed by grantor" but I don't think one card stating that would hurt you in anyway (when a bank manually reviews your credit report) I think the only time that will be questioned when there are numerous accounts by different banks that state that.

[Anonymous]

They did you a favor.  That's one terrible product no longer in your credit profile.

[orestrus]

Credit Queen, im sp tired of them that i no longer wish to fight. Yeah, they left (for now) another card active.

[orestrus]

My AAoA is only 4 months old, aside from Crap 1 i have BofA secured with 5k parked there, as well as secured US bank card. I rarely if ever ised crap 1, but always paid on time and in full. Both accounts have 0 balance. Now going forward im very concerned as to how these 2 accounts will be reported. -"closed by grantor" or active with 0 limit. Hopefully these will not have a negative impact going forward..Im planning to apply for amex cards when my BofA reaches 6 months mark. Will these possibly have an effect on Amex or any other card applications in the future?

[waters]

why were they closed?

[Anonymous]

What reason did they provide for closing the accounts?