Synchrony Bank Concerns

[jazzyvar84]

Hello. I've recently had to allow some debt to go to collections because of a lot of personal woes in my life. My concern is that I still have credit cards in good standing with my credit unions and a few lines of credit, but I don't know if Synchrony will lower my cards with them or even close my accounts. I have never made a late payment on any of them, but I know my credit score is about to drop very very low. Can anyone tell me what Sychrony will most likely do to me? I have a Belk's card, Care Credit, JC Penney, most importantly my Amazon card. Any information would be appreciated, as this driving me insane. 

[Adkins]

There's no way to predict exactly what Synchrony may or may not do given your current credit circumstances. They could do nothing, or lower your credit limits or start closing cards. I think lowering limits or closing cards is more likely. 

[jazzyvar84]

Thank you for your response. Do you think if I reached out to each store with an explanation that they might not close my cards?

[NoMoreDebt]

I would say in this climate its likely they would balance chase you down if you are paying down high balances or possibly close the account if already zero'd out to minimize their risk. 

I once had a much larger issuer CLD a card I had with them from $7500 to $1000 just due to my scores dropping because of my utilization skyrocketing and dragging down my scores. I never missed a payment and actually about 3 months in to having the high utilization started paying balances off completely but they still got spooked and did it. That was before the economy issues we are facing today even.

[jazzyvar84]

This is what I was afraid of. I'm bracing for it, but I'll still have a few credit cards and lines of credit with my smaller credit unions. Do you think those should be okay??

 And thank you for your response. 

[NoMoreDebt]

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@jazzyvar84 wrote:

This is what I was afraid of. I'm bracing for it, but I'll still have a few credit cards and lines of credit with my smaller credit unions. Do you think those should be okay??

 And thank you for your response. 

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I cant speak with absolute certainty but I would think if any card you have would be spared it would be one with a small credit union. We have an account with a small credit union that we have off and on used for about 8 years, currently not using just keeping it open with the $5 deposit and we have a low limit credit card with them that we have never put anything on and it hasn't been touched by them at all.

[jazzyvar84]

Last thing. Would it behoove me more to close all my synchrony cards, or to just max them and let them go to collections as well, since my credit is going to be damaged for some time anyway. 

[SweetCreditObsession]

@jazzyvar84 - it's never a good idea to deliberately max a card you don't intend to pay off.

Even if your cards are CLD or closed out by Synchrony, if you keep paying them off, they'd close as positive CLs.

Do the best you can to stop using any cards except for what you can pay off while you're in this crisis. You may be able to weather this storm with some credit lines intact.

Fo example, @OmarGB9. His situation was dire, but he was able to rebuild without needing a BK once he secured a stable job.

Your circumstances aren't identical but the point is that if some accounts go to collections it doesn't mean all must. Unless you are thinking of filing a BK, do your best to not give up hope or close out positive CLs.

[NoMoreDebt]

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@jazzyvar84 wrote:

Last thing. Would it behoove me more to close all my synchrony cards, or to just max them and let them go to collections as well, since my credit is going to be damaged for some time anyway. 

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I definitely wouldn't burn them by maxing and letting them go. That will only make things worse latter on for you rather your situation turns around and you are able to get them handled or if they end up needing to go to collections, having them charged up could make it easier for you be sued or harder for you to work a deal with them latter.

ETA: Even if bk becomes an option or thought later, maxing out your cards before hand can cause issues with them petitioning? I think it is called your bk at the creditors meeting. We had a small charge ($50) I think slip through on our discover card about a month and half before we filed and Discover per our attorney sent him a notice or something and almost caused us grief. Somehow they didnt follow through or just let it go.

[GZG]

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@jazzyvar84 wrote:

Last thing. Would it behoove me more to close all my synchrony cards, or to just max them and let them go to collections as well, since my credit is going to be damaged for some time anyway. 

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