Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Personal Finance
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 08-01-2009, 06:19 PM
 
Location: 23.7 million to 162 million miles North of Venus
22,932 posts, read 12,082,347 times
Reputation: 10180

Advertisements

Quote:
Originally Posted by janetvj View Post
My account that was just closed was also Chase. It was originally Providian, then was sold to WaMU, and then to Chase.

I have another account with Chase with a much lower interest rate (even though it was recently increased, it's still lower than some of my other accounts) and I'd really like to keep that account. This one was always a Chase account. So far, they've only closed the one.

I understand that the credit card companies are trying to minimize loss, but I don't understand how they are determining whether someone is a good risk or not. For those of us who always pay on time, and always pay more (and often significantly more) than the minimum, it seems punitive.

I am striving for the day when all of my accounts are paid off completely. But that takes time, and meanwhile I hate to see my credit score suffer. I've worked very hard to bring my score up, and I know there are a lot of others in the same boat. I just worry about having to buy a car (mine is 10 years old), or even qualifying for a new mortgage somewhere down the road.
It's my understanding that those with Providian/WaMU/Chase will be hit harder than WaMu/Chase card holders. WaMu/Chase card holders will be hit harder than Chase card holders. P/WM/C and WM/C are subprime accounts to Chase, with P/WM/C being a little more subprime than WM/C.

I'm not saying those accounts are subprime, or not, I'm just saying that Chase believes they are.
Reply With Quote Quick reply to this message

 
Old 08-01-2009, 06:28 PM
 
Location: 23.7 million to 162 million miles North of Venus
22,932 posts, read 12,082,347 times
Reputation: 10180
Quote:
Originally Posted by janetvj View Post
I had not used it at all for the last few years as the interest rate on it was really high. I would just pay the annual fee each year and that was it.

The reason they gave is too many open accounts (and that is true), and cards with high balances in relation to the credit limit. pay on time.
Not using the card was the biggest factor in losing it. High balances was probably the next factor. They probably threw in the too many open accounts just because they felt like it.

Quote:
I don't really care that they closed the account other than the negative effect on my FICO. I know they use the time you've had credit in their calculation. Will the fact that this is my oldest credit card impact that?
You won't lose the history of the account for the next 10 years or so. You will lose the utilization factor, credit limit, from that particular account though.
Reply With Quote Quick reply to this message
 
Old 08-01-2009, 06:37 PM
 
Location: Baltimore
1,802 posts, read 8,144,515 times
Reputation: 1975
Thanks for the info berdee. The Providian account was a sub-prime account at the time I opened it. It was one of my first credit cards, and many creditors looked at me negatively at the time because even though I was not a kid, and had a long work history, I had no credit. Zilch. At that time, I was recently divorced, and my ex-husband and I never had any credit cards or loans. So I was sort of a non-entity. Since that time, I have built up a decent credit history, and have a lot of accounts with much better terms. But that was one of the oldest.
Reply With Quote Quick reply to this message
 
Old 08-01-2009, 07:46 PM
 
Location: Long Branch
390 posts, read 1,506,924 times
Reputation: 110
Quote:
Originally Posted by Bideshi View Post
If I owe nothing anywhere and they close my credit card account (there have been two in recent months; one card I had since '81, another since '86) does that hurt my credit?
Credit or credit score?

It will indirectly affect your score especially since they had long history. If you had many open accts, though, it may reduce the affect. Too many is not good neither is too few.
Reply With Quote Quick reply to this message
 
Old 08-04-2009, 04:52 PM
 
Location: East Valley, AZ
3,849 posts, read 9,398,436 times
Reputation: 4021
It's the economy, nothing else. I have immaculate credit and debt ratio, but one of my creditors closed my credit card that I had also never been late on, and rarely used. I was surprised when it happened, but after talking to a few co-workers, I found out it's being done to everyone. Either the credit card companies are closing accounts or they are lowering limits. It's not your fault. Bad times in that industry have caused them to take drastic measures.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Personal Finance

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top