THEY CLOSED MY CARD! No warning.....

[Anonymous]

I recv'd a letter in the mail today from Visa.  They said that b/c I had not used my CC in over a year it "was closed".  I called CS and asked why I was NOT warned of this or given the option to at least KNOW so I could use the card.  She (CS rep) said they had no obligation to do this.  She then proceeded to tell me that FICO would be 'alerted...and it will say that this was VOLUNTARY"!!! This was not voluntary.  I would nver close an acct and damage my debt to credit ratio. I'm beyond furious.  I have worked very hard to keep all my scores above 800.  Does anyone know how this will affect them??  HELP!

[Math_Rocks]

So sorry to hear this. 

What kind of visa, e.g. B of A, Chase, etc.?

[Anonymous]

It was with Chase.......

[haulingthescoreup]

Hi, welcome to the forums, and sorry it was under these circumstances!

Please read fused's "Closing Credit Cards", linked in my siggy. The card should continue to report for 10 years after closing. Your scores won't be hurt unless you have balances report and losing this card's CL drops your total CL significantly, causing your util to rise.

CL = credit limit
util = utilization: balance reporting divided by credit limit. This is used both for individual accounts and for total revolving.

[Anonymous]

Thanks for respondin...and the warm welcome!  Appreciate that.  Not sure where to find that link/topic you suggested tho...(newbie).  It's been so long since I used the card I really can't recall what the limit was/is.  My guess is around 8,500...Are you saying that, if my scores are pulled by someone, it will continue to show that this card is somehow 'active'?  Not sure I understand.  Thanks for your time and patience...Kindly, PJ

[SCF]

HTSU was referring to the links in her signature, it shows up at the bottom of all her posts and makes life much easier for those of us who go looking for those threads regularly!

Even though the account is closed, because it is a positive item, it will stay on your report (listed as closed) for ~10 years.  This will positively affect the average age of your accounts by making it older.  However, the limit on the card will no longer count for your utilization.  You want to have >10% of your overall credit in use, so if you had a high balance on another card, the loss of the CL on your Chase card could raise your util and lower your score.  If you read the threads in HTSU's signature, that should explain it in more detail, but keep the questions coming!

Also, you might consider calling back tomorrow and getting a different CSR and taking a slightly different tack with them, if you want them to reopen the card.  If you have a good credit record and you apologize for not using the card and promise to use it regularly, there's a chance they will re-open it (no guarentees, but it might be worth the call).

Either way, welcome again and good luck!

Edit: Everyone's gender is still what it should be... move along.

Message Edited by SCF on 12-29-2008 09:59 PM

[haulingthescoreup]

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SCF wrote:

HTSU was referring to the links in his signature...

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"Her" signature, actually.

And here are two other general info threads that are really helpful in giving a general overview of credit and credit scoring.

Understanding Your FICO ® Score

Credit Scoring 101 (at least the first post.)

[Anonymous]

SCF, thank you.  I did scroll down but must have missed the link at the end of the post.  I'll try again.  I got the definite impression that they had no intention of rectifying this but your suggestion is a good one.  I'll give it a try.  I have pretty much zero balances on my cards. I had 5 open (now 4!) and only use one that's from Elan @6.99 fixed.  That one may carry a balance of $100, give or take a few, and is always paid before I even get the statement.  I suspect I should now get out and at least put $5-10 bucks on the others in the hopes this doesn't happen again.  It just stinks....they penalize people for paying late (understandable) yet really penalize those who use credit responsibly.  I don't get it...and am not a happy camper!  Thanks again....much appreciated.  PJ

[Anonymous]

SCF....I wanted to thank you ( and everyone who responded)!  I took your advice and called CS back this morning.  They 're-opened' my account!  However, she could "not promise me that it wouldn't affect my socres.."   I'm praying it doesn't.  I truly appreciate your input.  YEAH!

[SCF]

PJ, unless they reset the "opened" date on the account or change your limit, I don't think it should have any noticable effect on your scores, congratulations!  Now it's time to go mark up your 2009 calendar so you remember to use each of your cards at least every other month or so, so this won't happen again.

Have a happy New Year!