What's the deal with Synchrony?

[SouthJamaica]

---

@LeChauffeur wrote:

I had a Care credit card that they closed the next day after I paid the balance off citing my lack of use. I have a venmo card now for two years and they've increased my limit from $500 to $2k. Ok I guess. 

---

Yeah I had a Care Credit card for use in emergencies. Then when I needed to use it for an emergency, it had been frozen or closed (without them ever having notified me) for lack of use.

[NoMoreE46]

---

@K-in-Boston wrote:

---

@SouthJamaica wrote:

---

@reluctantgarden wrote:

---

---

Mine may be an outlying case, but there were no negatives, especially evidenced by since recovering about two-thirds of my SYF CL losses with new lines and CLIs. 

---

Actually I have seen dozens of reports of people experiencing Synchrony adverse action -- usually account closures -- where there no negatives and a perfect credit record. The common thread was that they had multiple large credit limits with limited utilization of the cards.

What is also common, though, is that every time someone reports that type of incident here, a dozen other people come on and say "Oh I've had accounts with them for years and have never had a problem with them", usually implying there must have been something troubling in the profile of the person who reported it. I don't know when it will become clear to folks that the fact that a dozen people haven't had a problem with a lender that has a zillion customers, doesn't mean anything.

---

Or put another way, when a company has millions of cardholders (without hyperbole) and has a handful of people a year posting on credit cards forums about adverse action, that does not demonstrate a systemic issue with their underwriting standards.  Some people omit facts, some post very obvious reasons (to the rest of us) why AA happened.  In no case do I believe that Synchrony just closes accounts randomly for the lulz. 

---

Yup, a dozen  of posters talking about the AA/CLD from Sync  just within our membership of say 130,000 isn't statistically compelling.  Even less so vs all of Sync holders.

[DebbsSeattle]

I have no such horror stories. We own 4 homes. Lowes and Harbor Frt are in my wallet not my sock drawer. We are doing a complete remodel of our Montana home (not by choice...the evils of flood water damage). We have a Lowe's Pro Acc't and a regular Lowe's managed by Synchrony. I have never needed to use The regular Lowes for too much at once and had a $1500 cl. Rental fridge goes out...I'm covered, right? Did cli rqst for 3500 in Dec, got it. Needed to order cabinets for $47k. Pro Acc't has $32k limit, I rqstd a bump to $15k and got it...just 20'ish days later. This will not even report as a balance on the next statement, I cannot take the maxed limit hit on my score. Then since I demonstrated huge use and fast payoff, I'm going to ask for a bump to $30k. We are building one home in addition to the involuntary remodel. I will have to report back on that outcome after Feb 12, 2025.

Harbor Frt...just opened that Acc't in Sept '24. Needed a large tool chest for the home under construction ( we are diy). Granted a $1,500 cl. Charged $1k, paid off <90 days regardless of the 0% interest. Requested cli, granted bump to $3,500. After Lowes bump, rqstd another bump, denied. Will hit them up again Feb 12, 2025 after Lowes cycles.

Had another Synchrony in the past but cannot remember which or when. It is now old and fallen off. Closed for inactivity, but never had any drama or horror.

I have nothing bad to say about Synchrony, but rather the opposite. That $15k cl is helping my util and I'm happy. I know what the credit limit gods giveth, they can taketh away, but I'm hoping for a future forecast of sunny and 70 with Synch...first because we use them/need them, second because I love the total credit cushion it provides. While they are both useful to homeowners, I'd probably still recommend to city apartment dwellers because the cli's seem easy and can cushion total util if you have the luxury of burning a HP to apply. Then just buy something online once or twice a year.

[Anonymous]

---

@SouthJamaica wrote:

---

The conclusion I draw from it is that Synchrony sees it as an easy way to quickly reduce its loan loss reserves for financial reporting purposes, thus reducing its reported loss or enhancing its reported profit.  People who aren't using their credit limits much anyway are deemed "deadbeats" in the Synchrony world, because they are not very profitable, and are therefore expendable.

To my mind this is a very short term outlook which is unhelpful to the company in the long run.

---

But from what I recall, you have been posting that Synchrony is in dire financial straits for quite a while (this post is more toned down!)   It still seems to be doing OK so they may well be happy with the performance.   In their purges, they get rid of non-profitable accounts, and, as false positives, get rid of some that might later be profitable, but presumably things are net positve.

[pauldc73]

My wife just finished paying off a Sync Home Design credit card that we used to purchase windows through a window replacement company.  It was a fixed APR through the life of the loan, and the CL was $27.5k

No horror stories here, and paying the note off through logging into the web site was quick and easy.  No credit line chasing as the monthy balance decreased either.

The one notable thing however was after this was paid off, there was an option on the website to close the account.  It worked as intended without any hassle.  No "are you sure" prompts, retention prompts or no speaking to an agent to confirm.  Just closed right there and then.  This suited us as there was zero interaction with a human!  So no more Sync here (for now!), quick and easy!

At least there's 27.5k more in the pot they can now use to attract more customers 

[SFLSpotter9210]

@1LostArk I had a Chevron card with them for almost 20 years and they shut it down. But, to be fair I didn't use it a lot so. I also have a Lowe's card and use it often with no adverse issues. I believe if you use them frequently and pay on time with no baddies you should be fine. 

[xenon3030]

---

@pauldc73 wrote:

My wife just finished paying off a Sync Home Design credit card that we used to purchase windows through a window replacement company.  It was a fixed APR through the life of the loan, and the CL was $27.5k

---

Lol. I was thinking that it would be the beginning of a horror story, to get a notification of a closure or CLD from Synchrony at the mid-night