Hacker News Reader

Comment by dghlsakjg | Hacker News Reader

My oldest credit file is a credit card that I don't use anymore but it is owned by WF.

If I close it, my credit score is negatively impacted by losing a decades old credit line. I don't particularly care about my credit score, and this sort of lock-in is pretty low friction, but changing banks can have costs.

I hate them, over the years that I banked with them, they have consistently been a bad bank. I think I have at least two complaints that went to the CFPB with them (both ended in my favor). I switched my banking activity to another institution years ago, but I do still have accounts open with them.

I'm a financially saavy rich white dude with a degree, and I still find it hard to sever the relationship. Imagine how lesser advantaged people feel. If you're choice is between WF and BOA because of geography or whatever, and you're used to financial institutions being shitty, why bother switching from one predatory institution to another?

View on HN

I was about to say, Wells Fargo was sold my mortgage literally the day after I signed it. I originated the mortgage with a local-ish bank and it still wound up in their hands.

The idea that closing your oldest credit line immediately puts you out on the street penniless is a redditism that's been parroted too much. That old account closed in good standing will continue to support your credit score, and if you have another credit card that's been open for a few years, the score hit will be 10-15 points. You shouldn't feel like you're trapped with Wells forever.

Penniless, no. Dings your credit score, absolutely.

Assuming it’s in good standing when closing, it generally will fall off your credit score in 10 years.

That gives you 10 years to build up a credit history with other accounts.

I closed an ancient Bank of America account several years ago because I didn’t want to do business with them anymore. It still contributes to my credit score. By the time it falls off, the other accounts will more than make up for it.

I get that, and like I said I genuinely don't care that much about my credit score.

I'm just trying to give a real world example of why someone might keep doing business with a known unethical entity.

It comes down to: I know that they suck, but there is a real non-zero cost to switching (my time and credit score), while continuing to do business with them is free.

Can you tell me about your experience with the CFPB. I just submitted a complaint against "Cardmember Services" who is the defacto disputing group on behalf of many banks. Cardmember Services does not seem to be acting in good faith which prompted my complaint.

I have nothing but good things to say.

In my experience, just getting the CFPB involved generally lit a fire under the ass of whichever company I had been dealing with. At the very least it will escalate your problem to a tier of support where a single person will be responsible for deeply understanding the issue, and ensuring that they get into compliance or respond ASAP.

Reply on news.ycombinator.com