Losing Credit Line-Account Closing

Iusedtolurk · ‎03-12-2021

Got an email from one of my creditors (Gettington) credit card:

Thank you for letting us serve your shopping needs. You've been a valued customer and account-holder, so we want to share some important news with you. After careful consideration, our parent company has decided to shut down Gettington.com. What does this mean for you?

Gettington.com won't accept orders after April 13th, 2021
You won’t be able to place orders with your WebBank/Gettington Credit Account after April 13th, 2021
You'll still be responsible for making monthly minimum payments on your WebBank/Gettington Credit Account until it's paid off

It's important for your credit history to continue making on-time monthly payments until you've paid off your balance.

Now Gettington (sister to fingerhut) was one of the accounts that helped to start my rebuild started out with 250 and through auto increases got to 1600.

I would order some things when on sale, free shipping, bonuses basically to have a good tradeline and utilization buffer.

Hate to lose the 1600 buffer especially since I'm unofficially officially gardening and have current aggregate utilization 20%.

Guess I will do minimum payments (interest is hardly anything) for about 9 months then it will be closed.

I was wondering how having the account closed would affect my CR overall.

Anonymous · ‎03-12-2021

What does the rest of your CR look like in terms of number of accounts, limits, etc?

FinStar · ‎03-12-2021

Other than loosing the "buffer" that would be about the only foreseeable impact as far as overall utilization goes. But, as far as AAoA, no. The account will still be factored into your AAoA after it's closed (generally for up to ~10 years or until it drops off).

Iusedtolurk · ‎03-12-2021

@Anonymous wrote:
What does the rest of your CR look like in terms of number of accounts, limits, etc?

Well so far as util if I was to lose the buffer it would change from 20% to 21.4% going from 12 accounts to 11. I was just wondering if there was something in the background affected with the closing of the account by the company. So many things in the foreground easily seen but things in the background like hitting 3 yrs AAoA, changing score cards, AoYRA hitting 3 years and etc.

Iusedtolurk · ‎03-12-2021

@FinStar wrote:
Other than loosing the "buffer" that would be about the only foreseeable impact as far as overall utilization goes. But, as far as AAoA, no. The account will still be factored into your AAoA after it's closed (generally for up to ~10 years or until it drops off).

Good to know.

I remember reading something about Closed By grantor not looking good to other lenders even though they don't see the reason why. Don't want anyone to get spooked unnecesarily.

It's like when you lose points sometimes when changing to better scorecards and an AR occurs and they see your score dropping thinking it might be something negative happening when its not.

Every since I got blindsided by the opening of installment loans (3 all short terms renewed when expired) to help my credit and later finding out about the classification of CFA that suppress your scores for as long as they remain on your report (10 yrs?) I try to be aware of all idiosyncrasies of the algorithms no matter how small or hidden.

FinStar · ‎03-12-2021

@Iusedtolurk wrote:
@FinStar wrote:
Other than loosing the "buffer" that would be about the only foreseeable impact as far as overall utilization goes. But, as far as AAoA, no. The account will still be factored into your AAoA after it's closed (generally for up to ~10 years or until it drops off).
Good to know.

I remember reading something about Closed By grantor not looking good to other lenders even though they don't see the reason why. Don't want anyone to get spooked unnecesarily.

It's like when you lose points sometimes when changing to better scorecards and an AR occurs and they see your score dropping thinking it might be something negative happening when its not.

Every since I got blindsided by the opening of installment loans (3 all short terms renewed when expired) to help my credit and later finding out about the classification of CFA that suppress your scores for as long as they remain on your report (10 yrs?) I try to be aware of all idiosyncrasies of the algorithms no matter how small or hidden.

Closed by grantor isn't a negative mark or notation. It's simply a documentated history of which type of closure occurred - customer or lender action. It bears no weight on scoring, scorecards, algorithms, etc. Some individuals consider the notation "unsightly" like a pimple (for lack of better terms), because they prefer their reports to reflect "pretty" and would rather action the closure themselves, when applicable.

That said, the only time a potential lender may raise an eyebrow is perhaps upon a manual review of a credit file and let's say you had...5-10 accounts closed in a very short period with the same notation by several lenders. But, it depends on the lender and/or what you're applying for and they could easily ask the same question if the 5-10 closures were actioned by you.

Iusedtolurk · ‎03-12-2021

@FinStar wrote:
@Iusedtolurk wrote:
@FinStar wrote:
Other than loosing the "buffer" that would be about the only foreseeable impact as far as overall utilization goes. But, as far as AAoA, no. The account will still be factored into your AAoA after it's closed (generally for up to ~10 years or until it drops off).
Good to know.

I remember reading something about Closed By grantor not looking good to other lenders even though they don't see the reason why. Don't want anyone to get spooked unnecesarily.

It's like when you lose points sometimes when changing to better scorecards and an AR occurs and they see your score dropping thinking it might be something negative happening when its not.

Every since I got blindsided by the opening of installment loans (3 all short terms renewed when expired) to help my credit and later finding out about the classification of CFA that suppress your scores for as long as they remain on your report (10 yrs?) I try to be aware of all idiosyncrasies of the algorithms no matter how small or hidden.
Closed by grantor isn't a negative mark or notation. It's simply a documentated history of which type of closure occurred - customer or lender action. It bears no weight on scoring, scorecards, algorithms, etc. Some individuals consider the notation "unsightly" like a pimple (for lack of better terms), because they prefer their reports to reflect "pretty" and would rather action the closure themselves, when applicable.

That said, the only time a potential lender may raise an eyebrow is perhaps upon a manual review of a credit file and let's say you had...5-10 accounts closed in a very short period with the same notation by several lenders. But, it depends on the lender and/or what you're applying for and they could easily ask the same question if the 5-10 closures were actioned by you.

That's Another good thing to know when a person gets to a point where they may want to close some of the sub-primes (that helped start their credit rebuild) and replace them with prime cards spread it out. Got you.