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#1130128 - 02/13/09 08:52 PM Rejecting a change in terms on a CC
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
If you receive a change in terms notice from a credit card company and reject the terms - they close the account.

Does anyone know if it negatively affects your credit score when it shows up that the account was closed by credit grantor (vs account closed by consumer)??

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#1130761 - 02/17/09 03:39 PM Re: Rejecting a change in terms on a CC Many Hats
Many Hats Offline
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Joined: May 2008
Posts: 915
Orlando, FL
BUMP please.

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#1130763 - 02/17/09 03:43 PM Re: Rejecting a change in terms on a CC Many Hats
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,630
Bloomington, IN
I can't answer this with absolute certainty but it has been my understanding that an account closed by the grantor does have a negative impact on the credit score.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1130768 - 02/17/09 03:47 PM Re: Rejecting a change in terms on a CC Dan Persfull
ktac MITCH Offline
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ktac MITCH
Joined: May 2005
Posts: 1,813
Giant side of TX
I agree with Dan, but just thinking out loud - - Maybe it would / should be reported as closed by debtor ? ? Because your action is basically to
1. Accept the terms and continue on . . . OR . . .
2. Not accept the terms and thereby you have chosen to close it.
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#1130838 - 02/17/09 04:38 PM Re: Rejecting a change in terms on a CC ktac MITCH
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
What I am finding is that it will show as closed by credit grantor (if you did not accept the new terms). And, consequently, the borrower is concerned that it wil negatively affect their credit score. No one seems to know if it will or will not.

In the meantime, if you don't like the new terms, you can always call and tell the creditor that you are closing your account and in that case, it will show as closed by customer.

Either way, it seems like your credit score might suffer in one way or the other.

Thanks for your help!

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#1130872 - 02/17/09 05:03 PM Re: Rejecting a change in terms on a CC Many Hats
ktac MITCH Offline
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ktac MITCH
Joined: May 2005
Posts: 1,813
Giant side of TX
I don't know that you will get a definitive answer, because how the scores (ie FICO) are calculated are proprietary information to the companies and they won't release specifics of how they are calculated or if X then the score will Y.
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