Martinez2010
Member
About 9 months ago, I sold my home after owning it for two years due to a work relocation. Since the move was uncertain in terms of duration, we decided to rent in the new city instead of buying again right away. At the time, my credit score was sitting comfortably above 720.
I had four credit cards with work-related balances totaling around $10,000, plus a few store cards I kept at a $0 balance just to help manage my overall credit utilization. Everything was in good standing, I’ve had years of consistent, on-time payments and no issues whatsoever.
Then, about 45 days after the home sale closed, my credit score suddenly dropped hard. It fell from over 720 down to around 650. Shortly after that, I received notice that one of my credit cards (a Synchrony Newegg card with a $5,000 limit and a $0 balance) had been closed. The only explanation in the letter? They could “no longer secure the debt with a home” even though it was an unsecured credit card. A month later, another Synchrony-issued store card had its credit limit slashed, bringing it down to just above my current balance. That alone shot my credit utilization way up, which caused another score drop. To make matters worse, I just found out my Wells Fargo Micro Center card (also $2,000 limit, $0 balance) was closed again, without warning.
I haven’t missed a single payment on anything. I’ve had no late fees, no defaults, no negative marks just sold a home I was paying $2,000/month on without ever being late. My vehicle is paid off, my credit cards have solid histories, and I’ve never carried excessive debt. And yet, here I am with a score that's dropped nearly 100 points, multiple closed or reduced-limit cards, and a serious ding to my credit utilization ratio.
What gives?
Is this just how the credit system works? Punish people for no longer having “secured” obligations, even with spotless payment history?
At this point, is my only real move to pay off the remaining balances as fast as possible and hope none of my other accounts get closed too? I was planning to buy another home next year, but now it looks like I’ll get hit with much higher interest rates all because I sold my house and kept every other account in perfect standing.
This whole thing has me completely disillusioned. Anyone else experienced something similar? And is there any way to push back or recover faster?
Appreciate any insight.
I had four credit cards with work-related balances totaling around $10,000, plus a few store cards I kept at a $0 balance just to help manage my overall credit utilization. Everything was in good standing, I’ve had years of consistent, on-time payments and no issues whatsoever.
Then, about 45 days after the home sale closed, my credit score suddenly dropped hard. It fell from over 720 down to around 650. Shortly after that, I received notice that one of my credit cards (a Synchrony Newegg card with a $5,000 limit and a $0 balance) had been closed. The only explanation in the letter? They could “no longer secure the debt with a home” even though it was an unsecured credit card. A month later, another Synchrony-issued store card had its credit limit slashed, bringing it down to just above my current balance. That alone shot my credit utilization way up, which caused another score drop. To make matters worse, I just found out my Wells Fargo Micro Center card (also $2,000 limit, $0 balance) was closed again, without warning.
I haven’t missed a single payment on anything. I’ve had no late fees, no defaults, no negative marks just sold a home I was paying $2,000/month on without ever being late. My vehicle is paid off, my credit cards have solid histories, and I’ve never carried excessive debt. And yet, here I am with a score that's dropped nearly 100 points, multiple closed or reduced-limit cards, and a serious ding to my credit utilization ratio.
What gives?
Is this just how the credit system works? Punish people for no longer having “secured” obligations, even with spotless payment history?
At this point, is my only real move to pay off the remaining balances as fast as possible and hope none of my other accounts get closed too? I was planning to buy another home next year, but now it looks like I’ll get hit with much higher interest rates all because I sold my house and kept every other account in perfect standing.
This whole thing has me completely disillusioned. Anyone else experienced something similar? And is there any way to push back or recover faster?
Appreciate any insight.