Beware Banks Closing Credit Lines With No Warning Due To Lack Of Activity.

deplorable_1 | May 21, 2022 | 409 posts since 2020

I just got a letter in the mail telling me my Citibank Costco Visa card with a $65,200 credit line was just closed with no warning! No email, no letter nothing telling me just to make a small purchase to keep the account open nothing.

I was under the false assumption that since it was attached to my Costco account this wouldn't happen as long as I had a Costco membership. I called and tried to get my card reinstated with no dice I did however manage to get a credit line increase on my Citi double cash card with no credit check as a consolation prize.

The last time this happened to me was during the mortgage crisis and many of my credit lines were slashed and cards were closed. Banks seem to do this type of thing whenever there is a looming economic crisis I have seen this pattern so be sure to keep activity on your credit cards with the largest credit lines and also your oldest accounts as closure of these will hurt your credit score the most.

Please don't lecture my about keeping activity on my accounts I'm well aware this was my fault for not doing so but I was using other cards which have a higher cash back percentage than the Costco visa. For example the BoA cash rewards card at Costco gives me 2.2% cash back and the NFCU more rewards AMEX gives me 3% on restaurants and fast food without having to wait all year and take a coupon to the store to cash in. I get 7% back on gas with another program as well. That's why this card saw no action. I'm just posting this as a heads up warning for others.

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Choice | May 21, 2022 | 657 posts since 2020

Lecture you....seriously....Must be a redefined mortgage crisis! Thanks for the (so-called) heads-up. If lenders had a heart....

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Hooked | May 21, 2022 | 128 posts since 2019

Thanks, d1. It is a good reminder about all our credit cards. Very nice to see you ‘returned’ after a long absence. I often find value in your posts.

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deplorable_1 | May 21, 2022 | 409 posts since 2020

Thanks Hooked I often wonder if anyone gets any benefit from my posts. I left largely due to the massive censorship I was getting here. Nothing like getting your posts removed constantly.

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FirstNation | May 23, 2022 | 57 posts since 2021

That's because I always report your posts.
It's a new hobby of mine.

3

deplorable_1 | May 24, 2022 | 409 posts since 2020

People who report others posts are very insecure and can not deal with someone having a differing opinion. It shows an extreme lack of character and is very immature. I have never reported the posts of others even if they contain personal insults or attacks aimed at me. Why? Because I prefer an open and honest discussion. Those who prefer censorship take the cowardly approach every time.

6

Rickny | May 21, 2022 | 271 posts since 2017

Find another card or more that gives a bonus (like the Wells Fargo cash back) that pays a bonus and you can add more to you credit line. Will ding your credit score a couple points. Last card I got dinged my credit score from 821 to 819.

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deplorable_1 | May 21, 2022 | 409 posts since 2020

Yes Rickny I was considering that Wells Fargo 2% card as well as a back up for the double cash. Would be interesting to find out if purchasing CD's with that card would be coded as a cash advance or a purchase(If anyone knows please post). I usually boost my total credit lines back up by applying for 0% low/no/or capped fee balance transfer cards like the Union bank 0% no fee bt for 15 mo. card just recently and I got another 20k added to my total credit lines. I try to make at least $200 each time I do a hard pull since it dings your score.

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Hooked | May 21, 2022 | 128 posts since 2019

Paying you back, d1…yes, it’s coded as purchase for the CDs that I purchased.

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deplorable_1 | May 22, 2022 | 409 posts since 2020

Thank you Hooked! I had not heard anything on that front yet I think I will apply for that card now. I'll do it in my wife's name though since her score is still 850. There is a $200 bonus for spending $1,000 in 3 mo. and a 0% 15 mo. BT offer with a 3% bt fee but that works out to a 2.4% fee over 15 months. There is a guy on doctor of credit that said his card came with balance transfer checks and get this NO balance transfer fee. Did your card come with the bt checks?

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deplorable_1 | May 22, 2022 | 409 posts since 2020

Applied today got instant approval and a $30,000 opening CL! Thanks Hooked I was putting this off for a while glad I did this now. Hopefully I'll get those 0% 15 mo. no fee bt checks with my card like others on DoC have reported. Either way a $200 bonus plus another straight 2% card is a win either way. ; )

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Hooked | May 23, 2022 | 128 posts since 2019

Hi d1, I got the card last fall and did receive those BT checks though with standard terms. The DoC posters were commenting about the no BT fee in March/April this year so I hope you will get a similar offer!

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deplorable_1 | Jun 7, 2022 | 409 posts since 2020

Well I did get the balance transfer checks but with a 3% bt fee attached. : ( Still may be worth doing as it works out to a 2.4% loan over 15 mo. even with the fee.

1

jack12 | May 23, 2022 | 92 posts since 2021

I had a paypal mastercard cut almost 90% or something with no warning or notification (a 3rd party credit service told me) They cut it to an odd amount- not a round number

Another card a fidelity visa increased my limit by 40% on their own without me asking for it
They sent a letter saying it was because of the way I handled my account

I recall back in 2008-2009 a number of my cards lowered my limits so we might be seeing more of this now

2

deplorable_1 | May 23, 2022 | 409 posts since 2020

Well back during the mortgage crisis I had borrowed large sums from Citibank in particular at 0% with no fee for 18-21 months. During this time they sent me a letter stating that they would pay off some of my credit card debt(like 1/3 of it!) if I paid the rest off by a certain date which was way before the 0% was due to expire. Well I agreed to the terms and paid it all off early. They did what they said and paid off the rest for me.
What they didn't tell me was that they would slash all my credit lines and basically put me on some kind of probation. I think I may be on some type of "high risk" list with them not sure. I have been treated differently ever since I took their offer even though I paid off all my cards, pay on time and never made a late payment. So another 2% option is probably a wise move for me just in case they try and pull something else with my other cards.

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Choice | May 23, 2022 | 657 posts since 2020

SAR time for money movements?

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sharon907 | May 25, 2022 | 19 posts since 2022

absolutely mr choice

better wear them shades

1

milty | Jun 7, 2022 | 37 posts since 2018

Ok, I'll bite. How are you getting 7% back on gas? Btw, does having a credit card closed by the lender affect one's credit score?

1

Choice | Jun 7, 2022 | 657 posts since 2020

All of this “no notice” reminds me of DA status (how about the on-going lag in posting of NFCU rates and financial info as a starter), the Great Recession (been posted here before, eg major FIs called in perfectly performing loans b/c FI needed $s (not more deposits) for their ratios, to the despair of those small businesses), etc. Nothing new…but thank you ALL for the reminder for/to the DA community! Plan accordingly

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deplorable_1 | Jun 8, 2022 | 409 posts since 2020

@Milty for the 7% back on gas I did a post dedicated to that topic here on DA: https://www.depositaccounts.com/community/misc/47822-save-money-high-cost-gas-check-speedy-rewards-p...
Yes having a credit card closed by the lender does lower your score a bit but only because your total credit limit goes down. As soon as you open another card and/or increase your overall credit lines it goes back up. Just like when you pay off a credit card with high debt.
Where it gets worse is if the credit card closed was your oldest card that establishes your credit history or if it is your highest credit line then your score will drop a bit more.

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milty | Jun 9, 2022 | 37 posts since 2018

D1: Thanks. Was hoping it was a straight CC discount. However, similarly, I get points from a local supermarket for just taking a weekly couple minute survey, which some intervals adds up to a dollar off per gallon, plus whatever percent off I get using a CC. One CC I have gives 5% off, but it only offers that 1 quarter of the year. Otherwise I use a 3% off CC. A Bryne Dairy just opened that gives almost a dollar discount but you have to sign up for their debit card that links to your bank account.

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deplorable_1 | Jun 10, 2022 | 409 posts since 2020

@Milty: Think of the Speedway rewards Mastercard as a 5% cash back gas card because that's about what the points work out to. Then add on top of that all the bonus points to get to 7%. If you really want to work out the math the $200 free gas card is 202,000 points. 202,000/200 = 1,010 points per dollar gas reward. So when you spend $20.20 with the card you get $1 in free gas. $1/$20 = 5%. This doesn't even take into account the free Speedy Rewards program itself or the extra 3,5,7 cents off a gallon(for using the fuel card) or any of the bonus points just for loading the fuel cards(1,500 points for $100 load currently) another 3 cents for being a speedy rewards member etc. etc. Heck it may be closer to 8% if I were to break it all down with math but the price of gas keeps changing too. Yes the math for this program is complicated but it works out very good.

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