Chase Closed My Accounts, What Does That Mean For My Credit Score?

"Closing your credit cards is usually something to avoid - especially if you know that you are going to be taking out a large loan soon, such as a car loan. That's because when you close your cards, this does damage to your credit score. Unfortunately, sometimes you don't have a choice about whether your accounts are closed or not - the creditor may close them for you."

"A Reddit user runs into big problems with his credit card accounts The original poster (OP) in the Reddit thread explained that he was in a tough situation. He said that he woke up to discover his bank would be shutting down all of the accounts he had with them. This included his only credit card, which had been open for 13 months."

"While he was not 100% sure why the bank had decided to target him like this, he suspected that it was because he was periodically sending money back to his family in his home country of Nigeria, and he thought this prompted the bank to believe he was engaging in fraudulent activity. Regardless of whether that's the case with the bank or not, the reality is that the lender told him the account closure is final, and there's nothing that can be done."

Bank-initiated credit account closures can damage credit scores, especially before applying for large loans such as auto financing. An account holder discovered his bank closed all his accounts, including his only credit card that had been open for 13 months. He suspected the bank flagged his international money transfers to family as potential fraud. The lender informed him the closures were final and irreversible. The account holder faces an upcoming car loan application and fears higher interest rates due to score impact. Potential mitigations include becoming an authorized user on another card to benefit from positive payment history and account age.

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