Wells Fargo Visa College cards closed - NIGHTMARE

Discuss the Visa & MasterCard payment networks as well as cards that operate through them.
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Champagne
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Wells Fargo Visa College cards closed - NIGHTMARE

Postby Champagne » Fri Apr 10, 2015 12:39 pm

To keep it very short and bitter...this is what happened.

I had a checking account with Wells Fargo and credit card and a college credit card. Between 1000-2500 limit each.

I payed them off in full every single month and never failed to pay them on time, for about 2 years.

So the other day I needed Bitcoin for buying something online without revealing credit card information, little did I know Bitcoin is legal but not many banks are Bitcoin friendly. a few days I get blocks on my Visa credit cards, both. Step into a branch and ask banker what's wrong, no idea. She points at the Bitcoin transaction and says that's most likely why since I've been a loyal customer for about 3 years in WF. Long story short...my checkings and credit cards are closed permanently and I can no longer bank with WF. WOW.

My question is...right before closure I payed off my credit cards and left them both at 0.00$ (smart?) they claimed it was internal bank decision and it would ONLY be reported to other instructions if I owed any outstanding balances. But isn't closing of any credit cards horrible for your credit?

I have a car loan I am paying off on time, in full, every month. But it's only been literally a month since it began (got car last month) but I have no credit cards...and they come in handy! I tried to go to TD bank and open up for credit card but they said they need "more information" and I'll get a decision in 7 days....which is probably a NO, right?

Do I wait a few months? Am I rushing anything? Is my credit score going to be affected?
:mad:


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PlyrStar93
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Postby PlyrStar93 » Fri Apr 10, 2015 4:24 pm

If you have other open credit line open, then there is nothing to worry about except for your available credit getting reduced and affecting utilization. Utilization is one part that affects your score.

Now you don't have any credit card open, but still no one can tell if any other bank will approve or deny you under this situation.

Your credit report still has the 2-year history on both accounts, so with another one your AAoA will stay the same. There is also good payment history showing on report. Just wait for their decision.

PS: Wells Fargo might suspect you are doing money laundering, so they close all your credit cards as well as checking. Similarly, Chase is sensitive to large amount of funds, especially depositing a lot of cash at the ATM is a very good way to get all Chase accounts closed.
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whit
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Postby whit » Fri Apr 10, 2015 9:01 pm

Them closing the card at 0 balance is better than having balance on it--but them closing it versus you doing so, is taken into consideration as mentioned

You will, get a reason why, if TD does not approve (the 7 days decision isn't always an automatic no) as to why its declined and you get to get a copy of the credit report they pulled so u see what they see

I don't know the in and outs of Wells Fargo but I can tell you they don't generally close accounts for no reason; and they don't do it lightly because I have a few friends who worked for them and some that still currently do. Their sales goals is really high because the company culture is very aggressive with products and growth (yay shareholders) but they also aren't as straight tight with their policies and procedures so a lot of gray area if you get my drift

What volume were you working with in bitcoin anyways? I've seen moderate amount pass (a few hundred at most) ok

CC Deville
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Postby CC Deville » Sat Apr 11, 2015 2:28 pm

Heh. Wells Fargo is a disease. I can understand; however, that they may not want to do business with a customer that is involved in Bitcoin. Bitcoin is not regulated and can be used for nefarious purposes. They were most likely covering their behinds by ending their relationship with you as you have now become a risk.

You indicate that you are in "The Sunshine State" so..Florida? In Florida you have all the major banks; BofA, Chase, Citi etc etc. Why did you decide to go to TD Bank? They are not really well known for their credit cards. You would be better off looking into BofA, Chase, Citi and even Capital One for a good, solid credit card that will take you into your adult life.

So just chill for now, wait for TD's decision. If they declined you, get prequalified on Capital One's website and see if they will offer you a card with good terms.

Champagne
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Postby Champagne » Sat Apr 11, 2015 5:10 pm

whit wrote:Them closing the card at 0 balance is better than having balance on it--but them closing it versus you doing so, is taken into consideration as mentioned

You will, get a reason why, if TD does not approve (the 7 days decision isn't always an automatic no) as to why its declined and you get to get a copy of the credit report they pulled so u see what they see

I don't know the in and outs of Wells Fargo but I can tell you they don't generally close accounts for no reason; and they don't do it lightly because I have a few friends who worked for them and some that still currently do. Their sales goals is really high because the company culture is very aggressive with products and growth (yay shareholders) but they also aren't as straight tight with their policies and procedures so a lot of gray area if you get my drift

What volume were you working with in bitcoin anyways? I've seen moderate amount pass (a few hundred at most) ok


It was roughly 2 deposits of 900$ each from Circle.com

Champagne
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Postby Champagne » Sat Apr 11, 2015 5:12 pm

CC Deville wrote:Heh. Wells Fargo is a disease. I can understand; however, that they may not want to do business with a customer that is involved in Bitcoin. Bitcoin is not regulated and can be used for nefarious purposes. They were most likely covering their behinds by ending their relationship with you as you have now become a risk.

You indicate that you are in "The Sunshine State" so..Florida? In Florida you have all the major banks; BofA, Chase, Citi etc etc. Why did you decide to go to TD Bank? They are not really well known for their credit cards. You would be better off looking into BofA, Chase, Citi and even Capital One for a good, solid credit card that will take you into your adult life.

So just chill for now, wait for TD's decision. If they declined you, get prequalified on Capital One's website and see if they will offer you a card with good terms.


Thanks! I chose TD Bank because it was next to the Wells Fargo haha.

I will try Capital One after 7 days and I get a response from TD.

Also TD said they "needed" more information....the banker did everything through the computer very quickly, all she asked for was my ID, no SSN. Then proceeded to say to wait for a response in the mail.

To finish off...to prepaid cards like Rush Card, Netspend, Serve, etc...run your credit/lower it? They require SSN and whatnot.

Champagne
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Postby Champagne » Sat Apr 11, 2015 5:13 pm

whit wrote:Them closing the card at 0 balance is better than having balance on it--but them closing it versus you doing so, is taken into consideration as mentioned

You will, get a reason why, if TD does not approve (the 7 days decision isn't always an automatic no) as to why its declined and you get to get a copy of the credit report they pulled so u see what they see

I don't know the in and outs of Wells Fargo but I can tell you they don't generally close accounts for no reason; and they don't do it lightly because I have a few friends who worked for them and some that still currently do. Their sales goals is really high because the company culture is very aggressive with products and growth (yay shareholders) but they also aren't as straight tight with their policies and procedures so a lot of gray area if you get my drift

What volume were you working with in bitcoin anyways? I've seen moderate amount pass (a few hundred at most) ok


So my credit will take a hit for this closure? :(

CC Deville
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Postby CC Deville » Sat Apr 11, 2015 10:13 pm

Champagne wrote:Thanks! I chose TD Bank because it was next to the Wells Fargo haha.

I will try Capital One after 7 days and I get a response from TD.

Also TD said they "needed" more information....the banker did everything through the computer very quickly, all she asked for was my ID, no SSN. Then proceeded to say to wait for a response in the mail.

To finish off...to prepaid cards like Rush Card, Netspend, Serve, etc...run your credit/lower it? They require SSN and whatnot.


Fair enough. It is nice that TD is opened 7 days a week. Hopefully they will approve your card.

Since your balance on the Wells Fargo is $0 it should not impact your credit by much. You will still eventually want to replace it with another card (i.e. your pending TD app or a future app with Capital One or whatever bank you choose-just be smart about it and don't apply for cards just to apply and will sit unused) so that you have credit history.

Those pre-paid cards issued by Metabank (and others- like The Bankers Bank) usually only do a soft inquiry (an inquiry that only you can see on your credit report vs. a hard inquiry that will temporarily impact your score and that other financial institutions can see) mostly to comply with the PATRIOT ACT of 2001 to prove your identity.

Many banks and credit unions also offer pre-paid cards usually with lower fees. My suggestion is to stay away from pre-paid; if you have good credit you can qualify for a credit card and as long as you have not been scandalous you should be able to get a Visa Debit/Debit MasterCard tied to checking with no fees from a bank or credit union. Pre-paid is largely for people that are straight up shady and can't qualify for a traditional bank account let alone a credit card. That sounds judgmental I know but a traditional bank account, if handled correctly, can pretty much be fee-free so why anybody that can qualify for a bank account would choose pre-paid is beyond me. Obviously Amex Serve, Amex Bluebird and the Amex prepaid from Target (many refer to it as Redbird) are better alternatives as it is cheaper.

Are you interested in prepaid so that you can use those to buy Bitcoin? Still be careful even with prepaid; those banks are also subject to regulation and could take the same action as Wells Fargo did.



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