I’m getting pretty good at this by now. This is what happens when you get out of MS and jump back in just a little bit too fast.
How do you know when you’re shut down
I logged on earlier in the week and saw this:
Notice the credit limit available was $0 although my balance was $6000. I had asked my buddy about this and he had the same issue – saying that too many payments will sometimes delay freeing up your credit line. He said it could take up to 21 days to clear. So I gave it a couple more days and still same problem. I decided to call them up and the nice rep told me my account had been closed by the bank on 4/25/16, and they’ve sent me letter in the mail already.
What caused this shutdown
Hahaha I mean, what can I say? Guilty as charged. I’d shut me down if I was me too going from less than $1K of spend to suddenly $17000 in one month. I’d assume I’d ditch everything and move to a secluded beach too. I thought it was due to anonymous payments, but my buddy also does anonymous payments to them and he wasn’t shut down. So I think this shutdown was due to increased risk exposure.
I have a free sub to protectmyid.com from one of those retailer hacks. It looks like Comenity decided to do a HP on me after my April spend before deciding to axe me. They initially pulled EQ when I applied in November and EX in April. I wonder if they saw the Barclays and Chase shutdowns and decided I was a flight risk. Either way, I wasn’t happy with that EX pull. I don’t freeze my credit reports, but now I’m seriously thinking of going down that path.
Why did I go nuts?
Well to defend myself, I’d say that I honestly didn’t think Comenity would shut me down. I also had no idea I had spent that much nor did I realize I was ramping up that much. This is what happens when you don’t log onto Mint in the last 6 months. So why did I put so much spend on this one particular card? Well, because I live in a VX market that also partners with HA. Their points are worth 2 cents on their own flights. Plus, I was hoping that after the AS transition, the points would have a higher than 1:1 transfer rate. Worst case, I was MS’ing 1 AS mile per $.
If I could do it again though, I would have maybe only spent $5K in April, then maybe $10K in May, and then 20K in June.
Luckily they were nice enough to credit my VX balance the 17K miles on the spend before shutting me down. I do plan on CFPB’ing them for my $149 annual fee and whatever remaining points that haven’t been credited and to remove that EX HP since I didn’t initiate that. Oddly, they kept my Victoria’s Secret angel card in tact. Not sure if they’ll get to that later or not. If not, then I may not be banned from the bank; just a specific card shutdown like the OBC. I’ll update you if my VS card gets the axe.
Once again, slow and steady folks. And more importantly, keep track of your usage!