I looked back at the document the bank sent to the credit card company and it said "pay down and close out this credit card/loan". It was dumb of me to totally miss that detail when I signed it, but I was assuming the "close out" part was referring to if it was a loan. I called the credit card company to ask that they reverse the account cancellation and they said they'd try, and that it would take 2 weeks. Is this common practice when people get personal loans? Who would want to close a credit card? Is it to ensure that I don't rack up more credit debt and miss payments with the bank? The whole point was to help my credit score by lowering my balances, but now I've got closed credit cards and lower limits on my record, so I'm actually worse off.
Edit: Just to clarify a few things, I took out the personal loan to pay off the credit cards because the rate of the loan was half that of the cc, and also to lower my card balances so that my credit score can increase. I'm not struggling to make the minimum payments, and I'm not in a crisis in any way. I was just curious about the fact that the bank asked the credit card company to close the cards. I am aware that it was dumb of me to not read the payoff letter more thoroughly before signing. The language said "I authorize you to apply this payment to pay off and close the line of credit/loan", which I took to mean that the actual amount would be "closed out" like you close out a position when trading stock, not that the actual account would be closed. Again, I UNDERSTAND THAT THIS WAS A MISTAKE. Honestly, though, I'm going to try and get a better credit card now that those cards are closed, so I'm actually better off. Thank you for the comments.
Submitted November 04, 2018 at 05:47PM by SupaNintendoChalmerz https://ift.tt/2quNYm0
