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Main site > Forums > Essential Money > Credit File & Ratings > Active account reported as closed
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      CuriousGirl
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    • CuriousGirl
    • By CuriousGirl 5th Dec 19, 11:24 AM
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      What's this?

    CuriousGirl
    Active account reported as closed
    • #1
    • 5th Dec 19, 11:24 AM
    Active account reported as closed 5th Dec 19 at 11:24 AM
    Yesterday I received a message from Credit Karma about a change to my credit score and out of curiosity logged into my my account to check what's going on. To my surprise I found that my CC account with Sainsbury's bank is closed and settled on 29 November. Which was a total shock to me as I have not received any notifications regarding the account closure whatsoever.

    Needless to mention I have not used the card for 13 months after I took a good balance transfer offer back in July 2017 and paid the balance within the 0% offer period. . Knowing about potential closure in case if the card not being in use for a long time I was going to use it for a single purchase and even requested the PIN reminder a few weeks ago. I have no intention to close account as I don't want the closure to reduce my credit utilisation and the length of my relationships with financial institutions.

    Called the bank customer service and they had no idea why my account reported as closed to Credit Karma (Transunion) , I was advised to keep using my card and promised to investigate the issue. On my return home found a letter from the bank , dated 28 November ( yesterday was 4th December), warning about potential closure of my CC account if I don't use the card within the next 2 months.

    My question is - any idea what to do next ? I am quite angry as I do not understand why my account reported as closed & settled whilst it is still open. I am not concerned about my fictional credit score with Credit Karma (which is 2 points downs because of the 'closure'), but I am concerned about how it will affect my credit history.

    Thanks in advance.
    Last edited by CuriousGirl; 05-12-2019 at 11:26 AM.

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      zx81
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    • zx81
    • By zx81 5th Dec 19, 11:37 AM
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      What's this?

    zx81
    • #2
    • 5th Dec 19, 11:37 AM
    • #2
    • 5th Dec 19, 11:37 AM
    Assuming you have other accounts, it's going to have minimal impact.

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      CuriousGirl
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    • CuriousGirl
    • By CuriousGirl 5th Dec 19, 12:30 PM
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      What's this?

    CuriousGirl
    • #3
    • 5th Dec 19, 12:30 PM
    • #3
    • 5th Dec 19, 12:30 PM
    I do have other accounts, my total credit line is over Ł45k and the 'closed' card has a Ł3500 limit. I, however, have a substantial CC debt incurred due our new home improvement. It is all at 0% promotional rate, I am paying more than min every month and it is going down nicely.

    My credit utilisation is less than 30% even taking out of the equation the Sainsbury's CC limit . I also face remortgaging in July next year and want it to go smoothly. I just don't like the fact of the incorrect reporting. Is there any point to complain and ask them to correct their error?

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      zx81
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    • By zx81 5th Dec 19, 12:41 PM
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      What's this?

    zx81
    • #4
    • 5th Dec 19, 12:41 PM
    • #4
    • 5th Dec 19, 12:41 PM
    I personally wouldn't bother, but it's up to you.

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      Tallaght
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    • By Tallaght 5th Dec 19, 12:43 PM
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      What's this?

    Tallaght
    • #5
    • 5th Dec 19, 12:43 PM
    • #5
    • 5th Dec 19, 12:43 PM
    Some cards do close accounts if there has been no activity for so long but they do usually send a reminder.

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      TadleyBaggie
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    • By TadleyBaggie 5th Dec 19, 1:36 PM
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      What's this?

    TadleyBaggie
    • #6
    • 5th Dec 19, 1:36 PM
    • #6
    • 5th Dec 19, 1:36 PM
    Closing what was a dormant account is going to have no impact on your credit history, or rather on how future lenders perceive any risk.

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      vacheron
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    • vacheron
    • By vacheron 5th Dec 19, 2:35 PM
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      What's this?

    vacheron
    • #7
    • 5th Dec 19, 2:35 PM
    • #7
    • 5th Dec 19, 2:35 PM
    If I were you I would let it close.

    My thinking being that then when your current 0% CC deals come to an end, you could find yourself eliigible for a nice Sainsburys promotional balance transfer card as a "new" customer!
    • The rich buy assets.
    • The poor only have expenses.
    • The middle class buy liabilities they think are assets.
    Robert T. Kiyosaki

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      Ben8282
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    • By Ben8282 5th Dec 19, 6:17 PM
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      What's this?

    Ben8282
    • #8
    • 5th Dec 19, 6:17 PM
    • #8
    • 5th Dec 19, 6:17 PM
    I am not concerned about my fictional credit score with Credit Karma (which is 2 points downs because of the 'closure'), but I am concerned about how it will affect my credit history
    How do you KNOW that the drop in 2 points on your CreditKarma credit score was due to the closure?
    Obviously you are concerned about it or would not have mentioned it.
    Exactly how do you imagine a closed credit card account will adversely effect your credit history?
    I do have other accounts, my total credit line is over Ł45k and the 'closed' card has a Ł3500 limit.
    Total credit line? Is that some sort of imported US expression?
    My credit utilisation is less than 30% even taking out of the equation the Sainsbury's CC limit
    I don't want the closure to reduce my credit utilisation and the length of my relationships with financial institutions.
    It won't reduce the length of your relationship with Sainsburys for another 6 years. The closed account will remain on your credit files for the next 6 years with it's current account age.
    If your credit utilisation is less than 30% with total available credit in excess of Ł45,000 then I don't think you have much to worry about although you do have a significant amount of unsecured debt which you may need to reduce (depending on income etc) before applying for a new mortgage.

    13 months is quite a short time for a credit card provider to close an account for dormancy. As the account is apparently still open why don't you just use the card if you want to keep it? Presumably when a balance appears Sainsburys will be forced to start reporting the account as open again but I think that even if they didn't you would be winning. If Sainsburys stop reporting the card then you can use it as much as you want without the balance being reported and the card will continue to show as closed with (presumably as it is closed) a 0 balance. So you win!
    Last edited by Ben8282; 05-12-2019 at 6:19 PM.

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      Thrugelmir
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    • By Thrugelmir 5th Dec 19, 8:01 PM
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      What's this?

    Thrugelmir
    • #9
    • 5th Dec 19, 8:01 PM
    • #9
    • 5th Dec 19, 8:01 PM
    “
    My thinking being that then when your current 0% CC deals come to an end, you could find yourself eliigible for a nice Sainsburys promotional balance transfer card as a "new" customer!
    Originally posted by vacheron ”
    Given the withdrawl from the mortgage market. Sainsbury's Bank is more than likely preparing itself to be sold on.
    “Risk comes from not knowing what you are doing. – Warren Buffett”

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      CuriousGirl
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    • CuriousGirl
    • By CuriousGirl 6th Dec 19, 9:13 AM
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      What's this?

    CuriousGirl
    Thank you everyone for your responses.
    As to Ben8282's post
    “
    I am not concerned about my fictional credit score with Credit Karma (which is 2 points downs because of the 'closure'), but I am concerned about how it will affect my credit history
    How do you KNOW that the drop in 2 points on your CreditKarma credit score was due to the closure?
    Originally posted by Ben8282 ”
    How do I KNOW ? Easy peasy - there is a monitoring tool and it clearly shows the drop due to the closed & settled account.

    “
    Obviously you are concerned about it or would not have mentioned it.
    Exactly how do you imagine a closed credit card account will adversely effect your credit history?
    Originally posted by Ben8282 ”
    Not concerned but I do regularly check my credit reports with all credit agencies. The length of my relationship with financial institutions does worry me as I periodically open new accounts and switch them to get bonuses.

    “
    I do have other accounts, my total credit line is over Ł45k and the 'closed' card has a Ł3500 limit.

    Total credit line? Is that some sort of imported US expression?
    Originally posted by Ben8282 ”
    Does it really matter ? As long as the expression makes sense.

    “
    My credit utilisation is less than 30% even taking out of the equation the Sainsbury's CC limit [/B]
    I don't want the closure to reduce my credit utilisation and the length of my relationships with financial institutions.
    It won't reduce the length of your relationship with Sainsburys for another 6 years. The closed account will remain on your credit files for the next 6 years with it's current account age.
    If your credit utilisation is less than 30% with total available credit in excess of Ł45,000 then I don't think you have much to worry about although you do have a significant amount of unsecured debt which you may need to reduce (depending on income etc) before applying for a new mortgage.
    by Ben8282;76574804
    [B     ”
    It is all in hands and under control. I am the breadwinner in the family and my husband has just been offered a new job which will make a huge difference to our overall financial situation.

    “
    13 months is quite a short time for a credit card provider to close an account for dormancy. As the account is apparently still open why don't you just use the card if you want to keep it? Presumably when a balance appears Sainsburys will be forced to start reporting the account as open again but I think that even if they didn't you would be winning. If Sainsburys stop reporting the card then you can use it as much as you want without the balance being reported and the card will continue to show as closed with (presumably as it is closed) a 0 balance. So you win!
    Originally posted by Ben8282 ”
    That is exactly what I am/was going to do.

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      Mrs_Ryan
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    • By Mrs_Ryan 6th Dec 19, 8:48 PM
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      What's this?

    Mrs_Ryan
    This happened with mums Debenhams card- but she uses it regularly and the card still worked fine. She did take them to the Financial Ombudsman though so I guess in her case they were chucking their toys out the pram.
    Open University 2:1 Graduate 2017; MA graduate DMU 2019- MERIT!! Round 2 OU 2018- BSc Combined STEM (Sports Psychology) Year 1 PASS! E117 &DE100. Year 2- K220 & E235.
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      CuriousGirl
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    • CuriousGirl
    • By CuriousGirl 9th Dec 19, 8:32 AM
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      What's this?

    CuriousGirl
    “
    This happened with mums Debenhams card- but she uses it regularly and the card still worked fine. She did take them to the Financial Ombudsman though so I guess in her case they were chucking their toys out the pram.
    Originally posted by Mrs_Ryan ”
    Thank you. Taking it to the Financial Ombudsman seems to be a bit harsh, I was thinking about complaining but decided that my precious time is not worth wasting it.

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      Mrs_Ryan
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    • By Mrs_Ryan 10th Dec 19, 9:49 PM
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      What's this?

    Mrs_Ryan
    “
    Thank you. Taking it to the Financial Ombudsman seems to be a bit harsh, I was thinking about complaining but decided that my precious time is not worth wasting it.
    Originally posted by CuriousGirl ”
    Ah the FOS complaint was for a separate matter!
    Open University 2:1 Graduate 2017; MA graduate DMU 2019- MERIT!! Round 2 OU 2018- BSc Combined STEM (Sports Psychology) Year 1 PASS! E117 &DE100. Year 2- K220 & E235.
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      Thrugelmir
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    • By Thrugelmir 10th Dec 19, 10:34 PM
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      What's this?

    Thrugelmir
    “
    Thank you. Taking it to the Financial Ombudsman seems to be a bit harsh, I was thinking about complaining but decided that my precious time is not worth wasting it.
    Originally posted by CuriousGirl ”
    If you aren't using the account. Then in time this fact is of more benefit than the score only you see.
    “Risk comes from not knowing what you are doing. – Warren Buffett”

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