So I have a high household income (over $200K) and my husband and I have excellent creit scores (above 720). We have lived in the same home for over 10 years. Last year, we had to face initiating a very costly lawsuit. Long story, but it is costing us close to $100K. We have paid for this ourselves, largely, and I am amazed that we have been able to do so. However, the fallout is that we have run up more credit card debt than we used to have. Not an ideal situation, I know, but we have to fight our situation.
Now I have a long term credit card company which has sent me a Dear John letter, notifying me they are closing my account because 1)total balance is high, 2) I have a high number of accounts and 3) I have recent late payments. 1)I can’t disagree with, 2)Yes I have a good number of store cards but 3) I don’t have one late payment in my credit report (I checked today). Further I have not used this particular account in over 1 year, although as recently as two months ago they were barraging me with mailings to transfer balances over to them.
What recourse do I have and I don’t want this to be a serious negative on my credit report or influence other account issuers to also take actions. What do I do (besides continue to pay down balances)? I feel like disputing and writing a letter, to the issuer and to the credit reporting agencies because I feel this closure logic is only half baked. Argh. Please let me know what you think. Thank you very much!
Bottom line, it’s their card and they can do with it what they please. It’s a bit like when you were a kid and the other kid wanted to take his ball and go home.
The only negative is going to be the loss of the credit history from having the card still open. Outside of that it will be reflected as closed by the creditor and that fact won’t hurt you since it sounds like when you had the card your payment history on it was good.
It just sounds like your stars aligned to trigger some automatic warning signal at the bank and then they cut you off to minimize their calculated risk.