OLLO Card Account Closure - Master Thread

[Anonymous]

I recently received a letter from Ollo advising me that my account had been closed. My account had never been late, and ALL my credit accounts are in good standing, and have been since I began rebuilding my credit 2 years ago. I had not, however, used the card or carried a balance for the last 6 months. My score is most certainly higher than it was when I opened the account.

I opened the account to increase my score, and it worked. As my score increased, I had access to better cards, with better rates, and higher credit limits, and have been using those. Now I will have a reduced total available credit and a new closed account on my credit report because they were not earning an interest on my account. Way to look out for your customers during a national crisis.

[OmarGB9]

They're just managing risk. Nothing personal. You just said yourself you hadn't used the card anyway in the last 6 months. That's a pretty long while, and in this pandemic it was enough time for them to make the decision to close it. If your scores have improved along with your overall profile, why is this so horrible? A closed account doesn't hurt you unless the closed CC had a considerable CL that was helping pad utilization, which, to be honest, I doubt an Ollo card would have. What was the CL?

[blindambition]

You don't have to carry a balance, but a card needs to show usage. A card dormant for 6 months is a long time to some lenders. A couple of swipes every couple of months should prevent that. Even if just a couple of $$.

[M_Smart007]

Sorry for your closure.

[Anonymous]

Just happened to me tonight...although I have yet to receive anything from with regards to it.Tried using the card tonight to make an online purchase,and the card was declined.Went and logged into my account on the Ollo website,and it said the account was closed.Account was in excellent standing.No missed payments,always paid more than the minimum,carried a balance of $200-$300 out of a $2500 limit(which was raised twice in the 2+years that I had it),and probably used the card 3-5 times a month.I am 4+ years post Chapter 7,and have been extra careful with my credit usage.They even sent me back in November,a 6 month 0% APR promo.My concern/question is:If a credit card company closes an account that was in good standing and not in default,does that hurt your credit score?

[FinStar]

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@Anonymous wrote:

Just happened to me tonight...although I have yet to receive anything from with regards to it.Tried using the card tonight to make an online purchase,and the card was declined.Went and logged into my account on the Ollo website,and it said the account was closed.Account was in excellent standing.No missed payments,always paid more than the minimum,carried a balance of $200-$300 out of a $2500 limit(which was raised twice in the 2+years that I had it),and probably used the card 3-5 times a month.I am 4+ years post Chapter 7,and have been extra careful with my credit usage.They even sent me back in November,a 6 month 0% APR promo.My concern/question is:If a credit card company closes an account that was in good standing and not in default,does that hurt your credit score?

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The closed account will still report to the CRAs for up to ~10 years and it will not impact your AAoA.  The only immediate effect you may see is if this closure somehow impacts your overall utilization due to the loss of the available credit.   But, other than that, the closed account is still factored into your AAoA until it drops off.

[Anonymous]

Finstar,

There was a $250 balance that I was planning on paying off next week on the card.Does the account being closed with a balance have any further impact,even though nothing was in default?

[FinStar]

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@Anonymous wrote:

Finstar,

There was a $250 balance that I was planning on paying off next week on the card.Does the account being closed with a balance have any further impact,even though nothing was in default?

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It can in some cases because it'll likely show as maxed since the available credit isn't there any longer.  I'm not familiar how Ollo reports if there's a balance on the closed account, but let's see if other members can chime in their experiences.

 I would definitely try to PIF as soon as practical to avoid such a potential scenario.

[creditfan]

it's same true to target MC, so I make sure to show some usage to the card every 6 months or so

[Anonymous]

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@FinStar wrote:

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@Anonymous wrote:

Finstar,

There was a $250 balance that I was planning on paying off next week on the card.Does the account being closed with a balance have any further impact,even though nothing was in default?

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It can in some cases because it'll likely show as maxed since the available credit isn't there any longer.  I'm not familiar how Ollo reports if there's a balance on the closed account, but let's see if other members can chime in their experiences.

 I would definitely try to PIF as soon as practical to avoid such a potential scenario.

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The problem is,I can't even access the account to get the balance.I know it was roughly $250.And I can't pay electronically because they shut down my online access.I tried calling them tonight and they were estimating a wait time of 30+ minutes.Totally ridiculous.I could see if I was late and maxxed out,but I was doing everything right.