Paying off CCs and Adverse Action

[EaglesFan2006]

I am in the process of paying off my CCs with the help of a personal loan.   By paying a lot down to 0, I understand there are some risks should the card issuers review the account ...IE lower limits, closing, etc. 

1) How common is it that a CC would really lower the limit or close the account after paying the balance to 0?  I've heard Barclay does it alot, but not sure who else

2) If they do close the account, does that hurt my credit score beyond the utilization impact?  Basically, does them closing an account hurt my AAofA, or "look bad" because they closed it and I didn't, even though I paid it off?

As I don't plan on using these cards, I'm not going to be upset if limits are lowered just so long as it doesn't cripple my credit or anyting like that.  I tend to think AA in this situation isn't overly common, although I'm sure it does happen.

[Anonymous]

I'm not really seeing enough information above to really comment, as we don't know what state your file is in currently prior to your revolver payoffs.  If you have recent negative items on your CR and/or are coming down from a place of sustained high utilization, you're much more at risk of being balance chased or other AA. 

The closing of any accounts doesn't "look" bad and really wouldn't matter much as you said.

[EaglesFan2006]

Hi,

No negatives at all other than the high balances. No lates, no collections. Just credit cards that I’m paying off , plus a mortgage and a student loan.

[Anonymous]

How high are the balances and for how long were they that high?  The higher they are and for the more prolonged period of time, the greater the perceived risk you were from the eyes of the lenders.

[SouthJamaica]

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@EaglesFan2006 wrote:

I am in the process of paying off my CCs with the help of a personal loan.   By paying a lot down to 0, I understand there are some risks should the card issuers review the account ...IE lower limits, closing, etc. 

I disagree with that; no one will take adverse action because you paid off credit card accounts.

1) How common is it that a CC would really lower the limit or close the account after paying the balance to 0?  I've heard Barclay does it alot, but not sure who else

It would be rare, and if it happened it would not be because you paid off the balance

2) If they do close the account, does that hurt my credit score beyond the utilization impact?  Basically, does them closing an account hurt my AAofA, or "look bad" because they closed it and I didn't, even though I paid it off?

In the unlikely event that it occurred I don't think it would hurt your score beyond the utilization impact.

As I don't plan on using these cards, I'm not going to be upset if limits are lowered just so long as it doesn't cripple my credit or anyting like that.  I tend to think AA in this situation isn't overly common, although I'm sure it does happen.

I don't see why it would cripple your credit.

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