Credit Card cancelled after pmt

[Floridagail]

My Bf is in process of planning either 13 or 7 if he loses his job. We stop paying all his 6 ccs in July. We kept one paying it each month on time for the time being, however after not being able to pay online he called in payment. The next day the credit line was cancelled. So he has not even filed yet. That is okay with us. We were just keeping it for hotel checkin and such.

[DebtHater]

The CC being canceled right after payment is probably just a coincidence. It was likely closed due to the other accounts going into arrears. Most creditors will check your credit report on a monthly basis. Even though they were getting paid, they saw the writing on the wall with his recent history of the others.

[catleg]

Was it an Amex? They are notorious for pulling stunts like this, though DebtHater is entirely correct. For laughs you could pull his 3 credit reports and see if there was a corresponding "soft pull" by this creditor at about the time the line was yanked. Come to think of it, you should be receiving an adverse action letter in the mail stating which credit bureau/report was used to make the decision.

P.S. Only 6 cards? :-)

[DebtHater]

For laughs you could pull his 3 credit reports and see if there was a corresponding "soft pull" ....

The big bank credit cards (Chance, Cap One, etc) soft pull every month.

[helpme2010]

My Bf is in process of planning either 13 or 7 if he loses his job. We stop paying all his 6 ccs in July. We kept one paying it each month on time for the time being, however after not being able to pay online he called in payment. The next day the credit line was cancelled. So he has not even filed yet. That is okay with us. We were just keeping it for hotel checkin and such.

The credit cards can freeze your line of credit for any reason they want to. I had this happen where one credit card company froze my line of credit and I had never missed a payment. Then my mortgage company froze my home equity line of credit for no reason. I then lost my job. I knew I was going to lose my other credit cards soon after.

I used to count on my home equity line of credit and my credit cards to help pay my bills inbetween jobs, but I knew this time, I was toast. This was one of the main reasons why I had to file BK. I will never give my business to credit card companies again. I will also work on creating a much larger savings buffer when I get a job again.

[Flamingo]

The credit cards can freeze your line of credit for any reason they want to. I had this happen where one credit card company froze my line of credit and I had never missed a payment. Then my mortgage company froze my home equity line of credit for no reason. I then lost my job. I knew I was going to lose my other credit cards soon after.

I used to count on my home equity line of credit and my credit cards to help pay my bills inbetween jobs, but I knew this time, I was toast. This was one of the main reasons why I had to file BK. I will never give my business to credit card companies again. I will also work on creating a much larger savings buffer when I get a job again.

Many lenders and creditors at the start of the mortgage crunch and the economic turndown closed accounts and reduced lines of credit or available credit because what many people were doing was using those lines of credit or credit cards to live on after losing a job, cut in hours, etc. or just for the heck of it. They closed the accounts or lowered the limits to protect themselves from default and the possibility the people doiing that would run up their high limits and default and file BK. You can't blame the creditors for that and one's credit agreement signed when obtaning the credit permits it. Creditors started to take harder looks at people who have not used their accounts for a while and then started running them up sky high and just made minimum payments which raised immediate red flags. Also people who rob Peter to pay Paul - that is eventually caught by creditors and they can close accounts, lower credit availability or raise rates since one has become a credit risk with that behavior.

[Floridagail]

It was merrick bank visa.

[helpme2010]

Many lenders and creditors at the start of the mortgage crunch and the economic turndown closed accounts and reduced lines of credit or available credit because what many people were doing was using those lines of credit or credit cards to live on after losing a job, cut in hours, etc. or just for the heck of it. They closed the accounts or lowered the limits to protect themselves from default and the possibility the people doiing that would run up their high limits and default and file BK. You can't blame the creditors for that and one's credit agreement signed when obtaning the credit permits it. Creditors started to take harder looks at people who have not used their accounts for a while and then started running them up sky high and just made minimum payments which raised immediate red flags. Also people who rob Peter to pay Paul - that is eventually caught by creditors and they can close accounts, lower credit availability or raise rates since one has become a credit risk with that behavior.

Flamingo, I completely understand why they did this. The sad part was I had used the strategy of home equity credit line and credit cards as life lines to pay my bills inbetween jobs. They had never cut my lines of credit before and I had always paid all my creditors.

This strategy by the CC & mortgage companies caused me to turn to bk as I ran out of lifelines. Had they not done this, I would have kept on paying creditors.

So while I understand the business strategy, at the same time I think they deserve all the people defaulting on them for cutting their life lines when they needed it the most.

[Flamingo]

Flamingo, I completely understand why they did this. The sad part was I had used the strategy of home equity credit line and credit cards as life lines to pay my bills inbetween jobs. They had never cut my lines of credit before and I had always paid all my creditors.

This strategy by the CC & mortgage companies caused me to turn to bk as I ran out of lifelines. Had they not done this, I would have kept on paying creditors.

So while I understand the business strategy, at the same time I think they deserve all the people defaulting on them for cutting their life lines when they needed it the most.

A credit card or a home equity line is not a "life line." An agreement for credit is a business transaction for the lender to lend money and the debtor agrees to pay back the money with interest for the privilege of having access to money that is not theirs. Emotions play no role in this process so if someone loses their job and runs up the cards and there is a change in their behavior, it raises red flags to the creditor and their account is investigated. They will take measure if they feel there is a risk. What you fail to see is that you became a risk once you started using your home equity line on a continual basis and just made minimum payments. If you did this back in the early 2000's, they probably would not have considered you a risk, but with the economy downturn, they protected themselves. It's just business.

[kel9000]

Oh yes. Been there, done that. Once.

Only takes once to count on a line of credit being there, and then, "oh my, it's not there!", to change the way one crunches the numbers in forcasting one's financial future : )

[Unibrow]

Flamingo, I completely understand why they did this. The sad part was I had used the strategy of home equity credit line and credit cards as life lines to pay my bills inbetween jobs. They had never cut my lines of credit before and I had always paid all my creditors.

This strategy by the CC & mortgage companies caused me to turn to bk as I ran out of lifelines. Had they not done this, I would have kept on paying creditors.

So while I understand the business strategy, at the same time I think they deserve all the people defaulting on them for cutting their life lines when they needed it the most.

That's why they say: “A banker lends you an umbrella when the sun is shining and wants it back when it rains”

When you file bk, you essentially throw the umbrella back in his face and laugh all the way to the bank.

[Flamingo]

That's why they say: “A banker lends you an umbrella when the sun is shining and wants it back when it rains”

When you file bk, you essentially throw the umbrella back in his face and laugh all the way to the bank.

I'll bet you wouldn't say that if you were the one lending the money, had a signed credit agreement for repayment of funds, did not get paid and were listed in someone's BK cause they could/would not pay you. Sometimes one has to place themselves on the other end of the spectrum to see what it really is all about.

[shark66]

Even back in 2006, when I paid off two of our CCs entirely, they were closed the next day. Total of $25,000. Paid from second mortgage that I took back then...would've never paid them in full had I known they were going to shut me down...an expensive lesson to learn, moneywise...

As for "being on the other end of the spectrum", I've forgiven more in debt to individuals than a junk debt buyer took me to court for...so do I feel bad about them not getting a red cent from my Ch. 13? Hell, no.