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What to do When a Retailer Goes Bankrupt

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Frequent Contributor

Re: What to do When a Retailer Goes Bankrupt


@CreditGuyInDixie wrote:

Long term goals can include eventually having three major credit cards, but much higher priority is the stuff I mentioned above.


Great advice here, I'll also add that unless you planning for a mortgage, car loan, or something else big in the near term then a short term score hit from new credit should not be a huge concern, just focus on the longer term.

Current Score: Mar 2019: EX FICO8 779, TU FICO8 800, EQ FICO 780, TU Vantage 773, EQ Vantage 786
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Message 11 of 16
Member

Re: What to do When a Retailer Goes Bankrupt

Very well said, CreditGuyInDixie! 

 

I can drop the utilization down on all cards quickly. The only reason the one card carries such a high utilization, was because it came at 0% financing for a year. So I bit the bullet and bought the patio furniture I wanted, with the plan of paying it off in six months. Only to be informed of the store's bankruptcy not even two weeks after the purchase. 

 

Well that six month plan just became a two month plan. No more store cards, time for real ones once everything is in order. 

 

Thank you for you advice and contributions to this thread, I found it very insightful!

Message 12 of 16
Valued Contributor

Re: What to do When a Retailer Goes Bankrupt

ZGallerie going bankrupt does not affect your credit card at all...except it will close to new purchases...

Your terms and conditions... promotions, etc.. all stay with the same bank that issued the card in the beginning... Comenity.







Family Member made me an AU on: 2008 Sears MC $2,001, 2016 SEARS Store Card $2,001, 2011 Synchrony Home $5,500 , 2003 FNBO Visa $9,900, 2008 Macys Amex $1900, 2008 Kohls $2,000, 2008 JC Penny $4,500, 2016 TJX Mastercard $1,500, 2019 SDFCU PowerCash Visa $10,000, 2018 AAdvantage Aviator MC $5,600, 2018 HSN $4,500, and 2016 Local Credit Union Visa $5,000.
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Message 13 of 16
New Member

Re: What to do When a Retailer Goes Bankrupt

Hello. I wasn't sure where to post this.I have an old store credit account on my report back from 2001.It was an Eatons department store card. Eatons went bankrupt and I think shortly after that Chase bought them out. It is on my TU report and it states that the status is OK and it shows that it is open and there is no balance owing. It has all zeroes reported. I looked at the payment history and I never missed a payment for that dept. store account. My question is this a good or bad thing? Thanks From all the way north in Canada.
Message 14 of 16
Frequent Contributor

Re: What to do When a Retailer Goes Bankrupt


@Mac1234 wrote:
Hello. I wasn't sure where to post this.I have an old store credit account on my report back from 2001.It was an Eatons department store card. Eatons went bankrupt and I think shortly after that Chase bought them out. It is on my TU report and it states that the status is OK and it shows that it is open and there is no balance owing. It has all zeroes reported. I looked at the payment history and I never missed a payment for that dept. store account. My question is this a good or bad thing? Thanks From all the way north in Canada.

An account in good standing is always a good thing for scores.  Now it might eventually get closed for non-use (does it show as open or closed now?).  Also, if ALL your revolving accounts have zero balances you'll get dinged on your score some, but if you let 1 card (or less than half your cards) report a small balance each month you'll see a score boost.

 

If it's closed, it will continue to report up to 10 years, and help with your average age of accounts.

 

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Message 15 of 16
New Member

Re: What to do When a Retailer Goes Bankrupt

Thanks for your help. The store card is reported as open since 2001. It is my oldest open account with 0 balance owing and the status is reported as OK and open. It was never closed by the bankrupt store.I am glad that it is still on my CR because it is my oldest account at 18 yrs. I think I lucked out with this account. Since I have a new Cap1 from June 2019 my age is now if I am correct 9 yrs now. I make sure my Cap1 card always reports with 1% utilization for a few months. Thanks again.
Message 16 of 16
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