I've seen AmEx and others do it... CLD or close an account in the pre-bankruptcy stages when accounts start to default.
I'd expect NFCU to do the same... I mean.. if I was a lender and saw a customer's accounts go derogatory it would set off red flags.
@Jrobertson1998 wrote:I went through the same thing, I had about 25k in open credit line with Navy Federal, my utilization was high on almost all my other cards. In my experience Navy Federal didn't close or decrease my credit line. I had a Target Store Card with Td Bank, they did close my account after seeing to much uti on my other cards. I had about three cards with Synchrony Bank. They decreased my limits on my Verizon Visa Card, but not my Paypal or Amazon Store Card. Citibank decreased my limits on my Best Buy Mastercard, but not my Double Cash Card. Maybe because my uti was already high on that card, but idk. Navy Federal is pretty lax in my opinion compared to other banks. My opinion your relative should be fine.
@Jccflat wrote:so I'm asking this for a relative who has almost 80 K available to Navy Federal credit Union in credit cards
and he has a few cards different bank that he couldn't pay the bills and it could go to collection but he's worried.
Will he lose Navy Federal credit union as long as it's up to date and paid I know aome banks close your account or decrease if it's a good standing since you owe the other cards.?
There's a huge difference between having high utilization on cards and having cards charged off for nonpayment. Account closures, balance chasing, credit line reductions, etc. would definitely be expected if someone is having new charge offs reporting. Those can of course still happen with excessive and prolonged utilization, but documented inability to pay even minimum payments is an entirely different level.
