Can a bank request I close my credit card when applying for a loan?
I recently applied for a $50k personal loan through Bank of America, aka FIA Services N...(blah-blah). Anyway, during the initial phone application I was told I was approved and the loan would be deposited in 7-10 days. I thought great! A week went by and I got a letter in the mail. Some crap about they needed to verify my mailing address based on information contained in my credit report. I was like, what? So I called them to see if I could just scan and e-mail it instead. After the 3rd phone call, the guy said to please hold while he reviewed my account. 3-5 min later, he comes back and finally says I'm approved for the loan, but he will need to close my Mastercard. I have a BoA (FIA) Mastercard w/ $50k limit, open since 1998. They didn't want to have $100k of exposure or some line of crap. I asked if I was approved, he said yes, but I had to close the MC. He said I could leave it open, but have a $2k limit. Cancelled my app, not denied. No thanks.
Can They Do This?
- 1 decade agoFavorite Answer
If Bank of America is the one funding your credit card and loan, they can certainly do it. Basically, they are saying you can keep your line of credit, or you can have the cash now in the form of a loan.
- toresLv 44 years ago
in case you shut 6 money owed your credit will drop dramatically. each and every time you shut an account your debt to credit ratio will improve. you mustn't borrow extra to pay returned debt. undesirable theory. the terrific element to do is to maintain those playing cards open with a nil stability and consistent with threat fee 10 dollars a month on them. something to maintain them open so as that they are no longer closed with the help of the creditor. this might improve your credit so plenty extra beneficial than only remaining them. Then pay off your loan which includes you funds income, or refinance it for a decrease interest cost. there will be a pair of 30 day lag for the charge to hit your credit on that economic business enterprise card. in case you haven't any longer have been given various debt and robust credit, you do no longer would desire to attend in case you opt for for which you somewhat opt to get the added loan.
- 1 decade ago
I dont think they can. That's good a 50k credit limit most credit card companies have a cap at 20k.
- Ralph NLv 51 decade ago
you are right. they want to limit the full loan. 50k not 100k this is standard do not worry.
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- Anonymous1 decade ago
Of course they can "do it." Either you meet their conditions or they won't lend you the money. I'd be leery of anyone with $100K of unsecured credit line, too.