NextCard has signed a deal to transfer its portfolio servicing operations, including its technology and proprietary systems, to the FDIC for the next three months to enable the FDIC to market NextBank's $2 billion credit card portfolio. NextCard also said this morning it has cut 90% of its workforce and has requested to be delisted from the NASDAQ Market System. Ron.
What does this mean? Good news, bad news? Sounds like an active step to sell our Nextcard accounts to another company, right? Or does it mean that my account is gone after 3 months?
I closed my account weeks ago, lol, because I couldn't deal with the uncertainty. I was especially concerned about a few unhelpful possibilities: 1) The transition may not be seamless (along the lines of what many of us experienced with X.com), resulting in perfectly healthy accounts being mislabeled, handled, and reported as collections accounts. 2) I was also worried that the new buyer would simply report the account as a "new account" which would negatively impact credit scores until it aged (once again) for a year. 3) Because NextCard's portfolio is such poor quality that it literally sunk their ship, I realized that many prime lenders would not want to taint their own portfolios by buying what remains of NextCard. The idea that my account might be transferred to an even more subprime lender and its subsequent impact on my credit files simply didn't appeal to me either. Although it's possible that some prime lender would buy my NextCard account, convert it to platinum, raise the LOC, and report it as an old account, I just didn't want to take that chance, so I did the simple thing: I cancelled. The tradeline now appears as "Paid, Closed" and that actually added a couple of FICO points. Doc
Just curious... was I the only one who chickened out? Did anybody else close their NextCard account? Doc
no, my account is still active. Got a $1.2k balance. Hope to pay this off by the end of April. Don't think Nextcard is going to find a buyer. Best regards, Mirage
I thought about closing it, but they lowered my apr from 23.9 to 9.9, so I'm hangin in there. I'm actively using it and paying it mostly off but letting them earn a little interest. I want to look like a prime customer to a new company. I'm hoping that someone might buy the prime rate, perfect pay history cards. This is just wishful thinking, we'll see soon enough
Mine's still open...0 balance since November, but it's my second oldest trade line, and a nice addition to my overall credit line. Gonna hope for the best!
Paid hubby's off and closed it in February. It was worthless before and probably won't be much better later.
Leo, Pat- I'm right there with you- I charged a few thousand on it (home renovations going on). Too bad there aren't any "real" rewards left to claim (looks like all the gift certs were taken already!) -mj
My borther wanted to close the account and I wanted to keep it open since it is one of the oldest tradeline (opened since 9/98). Ron.
Has anyone tried disputing late pays or anything on their Nextcard accounts? Since they're in such chaos right now, maybe they won't have it "together" enough to respond to disputes with the CRAs.
I WAS GOING TO ASK FOR 9.99% FOR MY WIFE AGAIN!!! ...AND MAYBE JUST JACK UP THE CREDIT LIMIT TO AN EVEN $20,000???? NO CREDIT REPORTS, OR DON'T BOTHER... If they are @ 10% staffing...thay MAY do the LEAST complicated stuff...
George- don't count on it. They outsource just about everything (even before the layoffs) to FirstData- new accounts, authorizations, credit line management, payment processing, customer service. FirstData has scores of thousands of people in call centers all over the country. -mj
