<br /><br />On a very basic level, closing an account automatically increases your utilization ratio. Also closing an account affects your average length of account history. Both of these are negative factors in your FICO score. This is why you should not close your oldest accounts or high credit limit accounts. With that said, the effect is minimal on low limit accounts or recent accounts. I don;t know the other factors that increased your score but it could be several. You may have simply paid a large balance from the prior month. With all this said, I personally do close and open accounts and my Fico is ~800. I am just conscious of the formula and the most importatnt item for your score, is never pay late. I am not aware of any difference in the formula between you closing an account or an issuer closing an account, all else being equal.

It does not care who closed the accounts. Wells Fargo closed my CC during the peak of financial crisis. Citi closed my Home Depot CC due to inactivity. There are more. Who cares. You can explain easily if there were any human reviews.

Been reading a few blogs saying beware about MS'ing the min spend for Amex intro offers. Anyone have any issue with that? Just got the Every Day Preferred card and only need $1k which isn't too bad.

Datapoint and inquiry: Out of the blue, my Citi Double Cash and TY Preferred cards were closed by the issuer. Have had each for 10+ years. Relatively light MS usage of DC card up until several months ago. FICO score +790. Telephone CSR couldn't provide any additional information (other than saying that it looked "strange"), letter to be received by mail apparently only says to direct written question to "ERU" at Sioux Falls POB.

Any ideas?

What is "relatively light" actually mean? For some, that is $500/mo and for others, $10,000/mo.
For me, Citi is very prickly when it comes to buying VGCs in large denominations just about anywhere. I cannot get a Citi card through SM without a denial (and subsequently being disabled from using it at SM for 24 hours.)
So the above question is pertinent.

Please let us know what they say and especially if they give you a reprieve.

Closures by issuers do not equal to delinquency.

There are many closures by issuers that have NOTHING to do with any negatives other than inactivities - the most common reason.

What does that mean? You have done light MS until a few months ago then up the ante? Or you stopped a few months ago? Totally unclear and can be a very important factor.

If your spend spiked up it can very well be the reason to lead to human review and then the human saw where you used your cards ... the rest is history.
Hope you get a reprieve. Else there are legal helps if it is Citi closures. Search here or google you will find the info in case you need it.

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CIti has shut me down in the past. Only unusual thing I did was pay my account with MC debits. Oddly, they only shut down the account I used for legit spend and paid off with debits. Notice didn't give any detailed explanation. I still have my AA account.

inactivity wld be good standing. it wrong to think a closre shwng up in cr hist wont hv any NEG impct.

Citi shut you down for making debit payments over the phone with GCs? What ballpark volume of payments were you doing?

You can choose to disbelieve or argue but what your understanding is wrong primarily because you confuse / mix up the derogatory items with the account closed by issuers notation.

Only when you have other derogatory items on your reports, otherwise a notation of account closed by issuer has NO negative effect on your report. Repeat - if only shown account closed by issuer, without any other derogatory items on the person's report there is absolutely no ill effect on your ability to obtain new credits whether it is cards or mortgage or auto loan.

Now, you should also NOT to confuse that the person can obtain new card from the SAME issuer who closed the accounts - some issuers would forgive after certain time has passed, some dont. BofA and Barclays dont. US bank and Chase may be. Citi forgives based on the nature of the previous traverse. Take your pick.

Before anybody asks, those information are given by folks who are affected when they seek advice, therefore not something made up or in one's perception but real life DPs.

Correct. A good example of this that is relevant to many on here was when the Citi got the Costco card portfolio in June 2016. The AmEx cards were closed by the issuer as the portfolio was "purchased by another lender". The reason for the account closure has no bearing on your report.

Did you get a call from Citi asking about unusual activity before the closure? They'll usually give you a chance to explain your MS and tone it down before a shutdown.

No call or other communication. I first learned when I had two regular charges (McDs and gas) declined, no fraud alert text. Went online, saw that accts were closed. Telephone inquiry was fruitless. Still waiting on letter, but I think all its gong to say is to submit any questions in writing. At the veryleast, I plan ot write demand letter for my cashback cash, around $150.

Thanks for the shout out Zgirl! I wish I had the bandwidth to spend more time here, and I really appreciate the shout outs from past clients and others who know me.

If I can ever be of help, please feel free to shoot me a message or an email.

those are also my stats for WF MO volume.

curious for other DPs out there w/ WF MO depo volume. would like to know if ~20k/mo MO depo is "dangerous". basically its over 200k/yr so a little shocking maybe? nothing like 77k/mo, but would be nice to hear a few other DPs to get a feel for whats possible.

I was going all out with 5/3 without issues... until I broke 100k in a single month. Not sure what truly got me backed off (I wasn't shut down), but I wasn't surprised when I realized the volume I had deposited.

appreciate the info. pretty sure 100k in one month would get noticed at any bank. so you didnt get shut down? or you mean they gave you a call to stop?

The manager told me that the risk department said to stop or have my account closed. Since MS is all I use the account for (which the manager knew), she said I can start depositing the MOs again in a few months and they probably won't be watching anymore.

thank you again. i like your story because ive heard a few DPs about smaller regional banks being OK with MO depo after full disclosure and conversations about what is going on. wish this was the case with WF and chase.

I did something similar with a local, one branch bank. Told the manager from day one what I was doing, gave them a crash course on the concept of "fake spend for miles." I was able to do around 5k no issue for like half a year. Then I crossed 10k, and they told me their risk team didn't like what they saw and asked me to stop. I promptly closed. But yeah, sometimes upfront honesty is good, but it still has limits.

thank you for sharing. 10k always seems to be a key threshold number.

Wow - you mean you would come in with 15 MOs and deposit them all at once with the teller? That's --- amazing. I do like 4K a week spread over 3 banks so that it's never a crazy amount, but I guess I'm just a small fish out there vs. the hardcore MS people.

Were you depositing into your personal or business checking?

That's not totally outlandish for WF. I've done 20-30k deposits at times, and back in the days of unrestricted 5x MS, 300-400k a month is normal. Something else must have been a trigger in this case, that made it appear suspcious.

how long is chase shutdown?

trying to figure out if it's worth trying a mailer for Ink Preferred!

Personal.

In retrospect, maybe it wasn't the volume that got me shut down. I had cancelled and requested a replacement debit card a couple of weeks earlier. Maybe that put risk dept. eyes on the account. I had a great relationship with the WF branch folks. Will try switching to more mobile deposits/ATMs and less tellers in the future.

Meh. Grocery is ok, gc.com won't unlock the bonus.

while anything is possible, its highly unlikely a simple request like replacing a debit card put eyes on your account. unless theres more to the replacement story. why did you replace your debit card? did you say it was stolen or lost? since you said "cancelled", then i assume its a brand new number. in that case, then its likely you had some monitoring.

Arrival Plus Closure by Barclay
 

1. It was shutdown by Barclay due to "Account Useage". Not sure what that means.
2. Had card for 2 years and $30K CL
3. Average balance about $10K, but month of closure it was about $20K.
4. Average $10-15K per month in MS
5. Last month I paid balance 6x during month. Typically I would do this 2-3x per month.
6. Never did BP except from another bank. WF and Chase
7. Not sure of this question.

Did you drain the accumulated cashback frequently and completely?

No, I did not drain the cashback frequently. In fact I was building up points to wipe out a $600 travel cost that was about to disappear. I got a $475 credit and that was the last thing to hit the account. Just paid $9k of the 14K balance and waiting on balance of debit cards to pay off the balance.

So they automatically credited your account for all the points you had earned with a statement credit?