Hi, My HSBC credit card was closed yesterday due to inactivity in 4 mounth. On my credit report it says the account was closed due to customer request !! Should i dispute and change it to credit generator request or is it better for my credit to say customer request. Thanks
No the balance was zero for 3 mounths which means the last activity on the account goes back to 3 mounths ago but HSBC claims that a payment is not an activity!! The last time i used the card was 4 mounths ago which resulted in closing the account.
HSBC, like many other financial institutions these days, is simply trying to get unused and available credit lines off their books. It's not your fault, just the reality of the current economy we live in. If this card made up a substantial portion of your available credit, your credit score will feel it because your credit utilization ratio will increase. If you can replace the credit line with a new card, then that will help. The other option is to spend less on your credit cards for the next few months until you can replace the credit line. You want your credit utilization to be less than 30%, preferably 10%.
Thank you for your reply, your reply was an answer to a question I never found an answer for so thank you for that. My initial question was if I need to dispute "Closed by customer request" which currently shows up under my CR and change it to "Closed by credit generator request " or it simply does not make a difference ?
I wouldn't bother disputing it. It's better for your credit score to leave it showing "Closed by customer request" with a zero balance.
Closed by customer request is definitely better. Closed by credit grantor is often an adverse action because you didn't pay. They did you a favor reporting this way.
But banks discontinuing their credit card programs like some bank in Georgia did with Aspire Visa will definitely hurt card holders' credit scores if they report it that way - closed by credit grantor - even though those cutomers affected might have stellar payment records.
