Road_Dog

Cross-posting this from a BOA thread since it's probably more relevant of a question/discussion here.

I wonder if anyone can provide any advice on how I can begin to get BOA cards.

• 3-4 months ago I was approved for a BOA Biz Cash Rewards with a $3.5k limit, with no prior/existing BOA relationship. This was part of an App-o-rama where I applied for a US Bank Biz card and Capital One Biz card on the same day (approved for USB, denied for Cap1).
• Once receiving the BOA card, my first purchase attempt was for $2k at a grocery store, which was denied and fraud locked. Customer service was able to clear the lock. I was then able to make two back-to-back $1.5k purchases shortly after.
• On day 12, my first statement closed with a balance of $3k out of my $3.5k CL.
• On day 13, I made another $500 grocery purchase.
• On day 19, I paid off the $3.5k balance from an external bank account.
• On day 21, I tried logging into my BOA account and was given an error message: "No accounts on file with this associated user ID". Customer service confirmed that my card account was closed as of day 20 “due to a negative mark on your credit report". The rep couldn't explain what this meant--only that their system found something they didn't like on my report.

I asked why I was approved in the first place if that were the case, and the rep seemed unsure but implied it was something found after the approval (a 2nd review of sorts). She herself said it didn't appear like anything incredible major and that she felt this wouldn't disqualify me from opening future cards.

They sent me a letter but it was vague and said nothing more than their decision was about their right to close accounts as they see fit, etc.

My initial hypothesis was:

• I either went too hard too fast when my first statement closed at 85% utilization, and the large grocery purchases set off a red flag, or
• BOA found out about my app-o-rama and/or further reviewed the number of personal cards I opened in the previous 12-months

Another theory: I should never have been approved at all since, at that time, I had been approved for 6 personal cards in the past 12 months--putting me well above the 3/12 limit for BOA (when you do not have a banking relationship with them).

I would have put this all to rest, however, I recently decided to switch my banking to BOA. Last week, I opened a BOA Checking and Savings, as well as a Roth IRA with Merrill, all with relative ease.

This past Monday, since I was now a BOA customer, I felt this moved me into the "7/12" category to get approved. As I was still at 6/12, I felt it was safe to apply for a BOA Premium Rewards--but I was declined.

I called their underwriting/recon department, and was told the reason was "Too much extended credit from BOA". This is strange, considering I do not have any active BOA cards. The rep I spoke with was equally confused and decided to escalate this to a manager for further review. Perhaps I was blacklisted from CC's (but not their banking accounts), or for some reason, the closure of my BOA Biz card has eaten up available credit their automated system is allowed to dole out (since apparently closed BOA cards still have their CL count against your total for 1 year).

I called back today and was informed the manager denied the application. I brought up the strange denial (too much extended credit with no cards) and the representative said that the manager does have the ability to override that but chose not to due to the business card that was "revoked". I asked the rep if they had a timetable they could suggest that I would be safe to reapply "where that card closure would no longer impact me" and she said she couldn't offer that sort of advice but that I was free to reapply down the road (would she say that if I was banned for life?)

Any guesses as to:

• Why my biz card was closed down in the first place?
• If I'll ever be eligible for future BOA cards? (If I was such a bad customer, why allow me to open bank accounts? Has this happened to anyone else who was later on allowed to open CCs?)

Is my situation even considered a "shutdown" since I was able to open banking/ML accounts with them? Is it possible CC and Banking entities are separate where I can be shutdown from one but not another? Are BofA shutdowns for life, or are there DPs of people having similar experiences (a card shutdown) and being able to open new cards down the road? For what it's worth, I'm fine waiting a year to acquire Platinum Honors and show that I'm a committed everyday customer on the banking side (hoping that can somehow help my CC approval odds).

radonc1

I will try to be brief.
Your credit card account was closed because you took a new card and basically went to town buying gift cards. In 2022, bank security knows plenty about MSing and many are cracking down big time on people who open new accounts and start abusing their cards.

You had multiple applications for credit cards. Have you looked at your credit report recently?? Or lets ask it this way. If you were the credit manager deciding whether an applicant with your data was a good credit risk, would you give him/her a card??

Finally, not all banks practice a scorched earth policy when cancelling clients they have no further wish to transact business with. If this had been Chase or Citi, I would have told you that you should expect a letter in the next 3-6 weeks closing all of your banking relationships, not just your credit cards. I don't have a good read on BOA. You may still get that letter. Don't be surprised if you do.

Right now, you are close to being persona non grata at BOA. I would sit back and let the dust settle over the next 6-12 months (if they keep you) and then see if they are willing to give to a credit card. Just don't be disappointed of they say no

Road_Dog

Thanks for the feedback. To be clear, even though the Biz card closure happened 4 months ago, you feel that me applying for a new card has somehow brought the spotlight on my brand new checking/savings and that I could expect a shutdown on the banking side too?

Im curious why I’d even be allowed to open a checking and savings if I was on their bad side. Don’t get me wrong… denying me the card makes sense. I had 11 HPs in the past 12 months, had opened 6 cards in the past 12 months, and had the previous BOA card closure likely due to behavior that resembled MS. I’m 100% fine waiting a year to reapply for a card. My credit report as it stands now probably strongly resembles a non-normal customer. But you seem to be suggesting a doom and gloom approach, where my checking/savings opening somehow skirted their system and is doomed to fail.

radonc1

Large banks such as BOA have completely separate sections for credit vs retail banking operations. This is why even in banks such as Chase, one can have their credit cards shuttered but still open a savings or checking account. However, once the account information gets circulated, the accounts are closed.

I don't have much information on how BOA operates. Why don't you let us know how it goes in the future. Right now, your business is a positive for BOA. They get to keep your money (checking and savings) for almost nothing and lend you nothing (no credit cards or credit).

So no, I am not doom and gloom. All I can do is reiterate what DPs are published by others. I do not have any accounts with BOA, so your posts are informative.

You asked for an opinion as to why you were shut down. You received one. Take what you wish to and leave the rest

Happy Traveling Consultant

Minor report regarding Consumers Credit Union shutdown of my checking account. Originally opened with Andigo who was acquired by Consumers a few months ago.

Been depositing $9k in MOs every month for years, used the account to pay credit cards. I didn't do anything to close but got this email today and tried to log in, but it says account is inactive.

Dear XXX,

We are sorry to see that you’ve closed your membership at Consumers Credit Union, but would love to learn more about your experience so we can improve. Your opinion is extremely valuable to us, and the information collected from your survey will be reviewed and acted upon at all levels within CCU as part of our ongoing improvement efforts.

radonc1

I would get on the horn at 9:01 AM Tuesday morning and find out exactly who closed your account.

Make sure it wasn't someone who called themselves Happy Traveling Fake Consultant

Hopefully, you still have all of the funds in your accounts.

If the bank did shut you down, it seems like the new management installed new security procedures which picked up your banking habits.

Happy Traveling Consultant

Good point. Hadn't even thought of that. Seems more likely they just don't like MO deposits.

worldiswide

you are totally correct. Even briefer...banking is ..your money you give to banks. CC .. money they give you. Different risk different rules.

Tectomoc

The important thing to remember is this: if you ever feel you are treated unfairly by a major US banking corporation there is recourse. Most banks have an "empathy hotline" they staff during normal business hours which takes complaints like, "You didn't give me enough signup bonuses" and 'those gift cards were for an event I was hosting" before finding quick resolutions.

MaxVO

WOW, new year and this thread suddenly came to life! The Fed must have stepped on the brakes to get the money supply down.

sowhatwegetdrunk

Tried searching but couldnt find much info.

Are these shut downs usually permanent for life? Or does it vary by bank? Specifically looking for DP on capital one and barclays shutdown and the possibility for applying their cards again

TTT103

I was shut down by Barclays five or so years ago due to extremely heavy spending and cycling through my credit limits. No other factors than that. I was originally told that the ban was not permanent, but was told in the fall that it was in fact permanent unless they change their terms and conditions, which likely won't occur anytime soon.

littlewinglet

Some DPs seems to suggest the typical ban is 7 years, at least that's been the case for a few major banks. I don't recall if that's the case for Barclays.

zeppoloveskafka

I believe my B of A ban is beyond 7 years at this point. I just try and open a credit card every year or two and see what happens.

radonc1

The DPs for reinstatement are few and fairly sparse in details.

Why someone who was banned in the first place and is given a second chance is rife with pretty wild speculation.

It appears that all of us dream that 7 years is the magic elixir, but no one really knows for sure.