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happygirl
12-17-2008, 08:50 AM
I got a letter saying they were closing my account. Do to a change in Vendors relationships. Anyone have any idea what that means?

nd5056
12-17-2008, 08:57 AM
...

...The rising concern about credit came as more households faced difficulties paying their mortgage or rent than at any time since the mid-1990s. Reports that unsecured debts - such as on credit cards or through overdrafts - were a "heavy burden" on consumers also reached record levels...

They want to reduce the exposure to CC debt, just in case. This is just the beginning…

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happygirl
12-17-2008, 09:11 AM
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They want to reduce the exposure to CC debt, just in case. This is just the beginning…

.

I wonder how that will affect credit scores. showing they closed the account

Shmily1
12-17-2008, 09:18 AM
Since it said vendor relationships, I would think that it would have been a card similar to Chase backing the WDW cards. Was this a card through Capital One that said maybe Best Buy or Walmart, etc on it? If so, they are terminating their relationship with that company and have to cancel the cards with those names on them.

nd5056
12-17-2008, 09:30 AM
I wonder how that will affect credit scores. showing they closed the account

Unfortunately it will. But not just by showing a closed account.

They calculate the credit risk ratio of your debt by calculating the total credit limit (all possible credits) and the total debt (all accounts again). Reducing the available credit will increase your ratio. You can try to appeal it if you had a good standing with them, just not sure if it would work with them.

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happygirl
12-18-2008, 07:26 AM
Unfortunately it will. But not just by showing a closed account.

They calculate the credit risk ratio of your debt by calculating the total credit limit (all possible credits) and the total debt (all accounts again). Reducing the available credit will increase your ratio. You can try to appeal it if you had a good standing with them, just not sure if it would work with them.

. Thanks for the info

nd5056
12-18-2008, 04:45 PM
You're welcome.

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KirstenB
12-18-2008, 04:49 PM
Since it said vendor relationships, I would think that it would have been a card similar to Chase backing the WDW cards. Was this a card through Capital One that said maybe Best Buy or Walmart, etc on it? If so, they are terminating their relationship with that company and have to cancel the cards with those names on them.


I agree with this. We went through the same thing this summer. The LL Bean credit card had been issued by Bank of America. LL Bean switched the provider to Barclays. I received notices from both companies that my card would not work as of July 1. I had to reapply to Barclays to get a new LL Bean Visa.

disneymagicgirl
12-18-2008, 07:03 PM
Unfortunately it will. But not just by showing a closed account.

They calculate the credit risk ratio of your debt by calculating the total credit limit (all possible credits) and the total debt (all accounts again). Reducing the available credit will increase your ratio. You can try to appeal it if you had a good standing with them, just not sure if it would work with them.

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will also affect your score b/c of your drop in "Average age" of accts. Check myfico.com for info...

dreams91
12-18-2008, 11:00 PM
Unfortunately it will. But not just by showing a closed account.

They calculate the credit risk ratio of your debt by calculating the total credit limit (all possible credits) and the total debt (all accounts again). Reducing the available credit will increase your ratio. You can try to appeal it if you had a good standing with them, just not sure if it would work with them.

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Chase closed ours saying we hadn't used it in more than 2 years. But their letter indicated that it would not negatively impact our credit score at all. I'm sure tehy are closing it to reduce whatever risk they can.