Any idea how long it takes for cc's to close accounts?

[backtoschool]

Thanks B2S. They might be store card-like but they are actually both through Citibank....which is what is really surprising me since I bk'd on the Home Depot card (also Citibank)....seems they would have run my social through the entire system. I like jb's "never know" explanation, somewhat comforting.

The store card division of Citibank is probably a cobbled together collection of smaller card servicing departments. (just like Citibank is a cobbled together collection of former banks....). The right hand probably doesn't know what the left hand is doing, which is typical of Citibank in general, and will bode well for you keeping the cards post discharge.

[ccsjoe]

Why does this not surprise me B2S....lol.

[IBroke]

Monthly payment terms apply. My Home Depot card was in that situation. They wanted to raise interest rate, I said no, they said this will close it you need to reconsider, I said close the sucker then. Enjoy.

Good news then - so I guess it's them to pay some utilities. That might even keep the cards longer on my report if I just make minimum payments once they decide to close them...

[ccsjoe]

It'll keep them longer, however they'll be reported as closed by grantor, your limit will be equal to your outstanding debt which will put your credit usage for that line at 100%.

[IBroke]

It'll keep them longer, however they'll be reported as closed by grantor, your limit will be equal to your outstanding debt which will put your credit usage for that line at 100%.

Well, paying off the entire balance is always an option and even at minimum-payment, it won't take that long. The "closed by grantor" doesn't bother me because it has no impact on the Fico and would also be reported if I wouldn't touch the accounts...

The secured account - IF it closes - is probably going to cash in on my deposit anyway so it wouldn't make any difference.

[Flamingo]

I totally agree and have no intent to "depend on them", they're store cards anyhow. Just was curious to see if there was any standard parameters as to the timing. Starting to guess that if even you do not know of any parameter, then there isn't one period.

Thanks.

A card surviving a BK with a zero balance can be closed at any time up to several years down the road. We had a card survive (Dress Barn) and even though I used it now and then prudently for several years, it was closed in the fall of 2007 (we filed 4/02) due to "bankrtupcy on my credit report. There is no guarantee, there is no time frame. Know that the majority do get cancelled out so be prepared.

[IBroke]

The advantage of not including some CCs in BK might be a factor in the (very far) future - let's say when the BK falls off your credit-report. By keeping some cards longer - even if it's only for a few months - you can avoid this well known "BK-cut" on your report - meaning that your older credit-history came all of a sudden to a stop at a certain date - your BK-filing. That's what I want to achieve as well by reaffirming my car-loan.

[backtoschool]

The advantage of not including some CCs in BK might be a factor in the (very far) future - let's say when the BK falls off your credit-report. By keeping some cards longer - even if it's only for a few months - you can avoid this well known "BK-cut" on your report - meaning that your older credit-history came all of a sudden to a stop at a certain date - your BK-filing. That's what I want to achieve as well by reaffirming my car-loan.

I think you are overthinking this. The bk public record on your credit report is a big nuclear bomb. The fact that you kept a card a couple of months and then they closed it is not going to make much of a difference to your credit score. Getting new trade lines post bk will be more meaningful to your score.

[IBroke]

I think you are overthinking this. The bk public record on your credit report is a big nuclear bomb. The fact that you kept a card a couple of months and then they closed it is not going to make much of a difference to your credit score. Getting new trade lines post bk will be more meaningful to your score.

No question about that - new TLs will be established the day I get my discharge..

[ccsjoe]

A card surviving a BK with a zero balance can be closed at any time up to several years down the road. We had a card survive (Dress Barn) and even though I used it now and then prudently for several years, it was closed in the fall of 2007 (we filed 4/02) due to "bankrtupcy on my credit report. There is no guarantee, there is no time frame. Know that the majority do get cancelled out so be prepared.

Thanks Flamingo. That's a heck of a long time, 02 to 07.

[keptdigging]

My $1K secured CC (zero balance at filing) is still open about 45 days later. Agreement specifically says they will close it upon a bk filing. OTOH, it's a secured card, they're unlikely to run a credit check. I have used it successfully so it really is functioning. Not depending on it, obviously, but it is nice for rental car deposits and motel guarantees.

Of course if they cancel it, I get $1K back from them so not an entirely negative event.

[Flamingo]

IBroke wrote: "No question about that - new TLs will be established the day I get my discharge!"

Bad move...looks bad and the more credit you try to accumulate the more denials you will get and those hard inquiries stay on your credit reports for two years...does not look good at all just out of a Chapter 7 and with some creditors just having a BK on your credit reports is instant denial. Be prudent, take your time cause your rush to get credit again will show and whether you like it or not, you are a huge credit risk.

[ccsjoe]

IBroke wrote: "No question about that - new TLs will be established the day I get my discharge!"

Bad move...looks bad and the more credit you try to accumulate the more denials you will get and those hard inquiries stay on your credit reports for two years...does not look good at all just out of a Chapter 7 and with some creditors just having a BK on your credit reports is instant denial. Be prudent, take your time cause your rush to get credit again will show and whether you like it or not, you are a huge credit risk.

Agree. My first focus is going to be fixing my credit reports, making sure info is accurate. Already living within budget & all cash, so no hangups there. Once Credit reports are accurate, then apply for 1 or 2, max.