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Virgin America Visa Cancellation Issue

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kristens
New Member

Virgin America Visa Cancellation Issue

Hi All,

 

I have a problem that just came up after the closure of all the VIrgin America Visa products.  In December 2017 I used the card for the last time and then requested they close the account.  The accounts were already all scheduled for closure on 1/3/18 due to the product being no longer available.  The account has now been shown as closed on all my credit bureaus however there is a note on all of them that says "account closed by credit grantor". This has caused a 40+ point drop in each of my bureau scores.  I'm not sure what can be done about this?  It seems ridiculous for 2 reasons.  First, I requested they close the card just prior to when I knew all the accounts were being discontinued.  Second, it was not closed due to any issues with the account, simply that the product was no longer available.  This is a huge impact on my credit scores and seems incorrect to me.  Any thoughts or suggestions would be greatly appreciated.

Thanks All!

Message 1 of 8
7 REPLIES 7
Hex
Valued Contributor

Re: Virgin America Visa Cancellation Issue

I wouldn’t like to have that comment either but I don’t think that’s what caused the point loss. How many cards do you have? Did the closure bring you down to less than 3 cards? Did the closure cause you utilization to go up?
Message 2 of 8
Anonymous
Not applicable

Re: Virgin America Visa Cancellation Issue


@kristenswrote:

Hi All,

 

I have a problem that just came up after the closure of all the VIrgin America Visa products.  In December 2017 I used the card for the last time and then requested they close the account.  The accounts were already all scheduled for closure on 1/3/18 due to the product being no longer available.  The account has now been shown as closed on all my credit bureaus however there is a note on all of them that says "account closed by credit grantor". This has caused a 40+ point drop in each of my bureau scores.  I'm not sure what can be done about this?  It seems ridiculous for 2 reasons.  First, I requested they close the card just prior to when I knew all the accounts were being discontinued.  Second, it was not closed due to any issues with the account, simply that the product was no longer available.  This is a huge impact on my credit scores and seems incorrect to me.  Any thoughts or suggestions would be greatly appreciated.

Thanks All!


Whether closed by consumer or closed by issuer has no different effect with your score. They affect your score exactly the same. Some people say manual review some may see it differently. That’s about it. Your score drop would be the same. O matter who closed it. If that’s what is dropping your score.

Message 3 of 8
Hex
Valued Contributor

Re: Virgin America Visa Cancellation Issue

Also are you looking at FICO scores? Vantage scores don’t count closed accounts in the average age of your accounts but FICO (the score that matters) still does for ten years after they are closed.
Message 4 of 8
Kforce
Valued Contributor

Re: Virgin America Visa Cancellation Issue

Something else is causing your drop in scores. Closing a card should not drop your score at all.

If you closed the card and you still have a balance on it (yes), changed you "Util" or had a mortgage/car loan get paid off and they stopped reporting.

Also if you are looking at CK scores they only factor in open cards and closing a card will change CK numbers but not real "Fico" scores.

Message 5 of 8
Hex
Valued Contributor

Re: Virgin America Visa Cancellation Issue

You should check your real FICO scores. If you don’t want to pay to subscribe you can check your Experian FICO 8 for free on the Discover Scorecard site.
Message 6 of 8
Anonymous
Not applicable

Re: Virgin America Visa Cancellation Issue

The socre cancellation didnt cause a point drop at all unless it greatly affected your overall utilization. Additionally it amkes no socre difference whatsoever whether it says closed by consumer or creditor.

Message 7 of 8
kristens
New Member

Re: Virgin America Visa Cancellation Issue

Thank you for the input everyone. I’m at a loss to know what else it could be but will defer to those here with more experience than I have. The scores are real FICO based on paid service I have. (Credit check total) It didn’t change my utilization at all because I had 2 credit line auto increases that just happened to come the same month the Virgin American showed closed.  I have 12 total visa/Amex/mc with credit lines from $6200 to $23k so dropping below the 3 accounts isn’t a problem. No lates, no new apps. I did lease a new car the beginning of December ‘17 but I saw it post to my bureaus in January and no score drop then. Also I traded in/paid off my previous car loan at the same time so no additional debt there. I guess I must be missing a data point that’s affecting it??  Just really wish I knew what it was so I could remedy. Experian dropped from 781 to 740 and I got an alert from CCT saying new activity and when I logged in the alert page showed that account “closed by credit grantor”. Next alert same day was that my score had changed. Any ideas what I’m missing?

Message 8 of 8
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