HELP! Bestbuy Card Cancelled without Authorization!

[Blaid]

SO my girlfriend and I got a bestbuy card, and the only way we could was to have her aunt co-sign for us (we are both young 20 and 19). So we tell her what we want it for, and she approves, and our credit limuit of 2200 is given to us. Admitidly, we went a little crazy, but our goal was to rack up enough stuff, taht we could start building our credit by paying it off. So we get our first statment for $60 ish due. We pay $150

next statement for ~$60, we pay 2 payments of $100 a piece (1 from my card and one from hers)

Next day we try to use it...it has been cancelled. We never recieved a call from HSBC, neither did our cosigner. And they arent giving us any details at all. They wont tell us anything...and its really pissing us off.

So now we have a 1900 balance due on a cancelled credit card (hurts our credit BADDDDD doesnt it?) and no explination why it was cancled.

Do we have any legal recourse? HSBC wont tell us anything...and we are thinking fraud.

 

[Brainonska511]

Of course it is going to be canceled, you're using almost your entire credit limit. Read the terms of the credit card. They probably retain the right to cancel your account at anytime they please.

Edit: How can you not get a CC in your own name? Usually at that age, CC companies and stores give them out like candy.
I got a Citibank Dividend Student card when I turned 18 with a $2000 limit on it and no co-signer/credit histroy.

 

[Blaid]

they retain the right to f*** up our credit score? just because they want to? That seems like a BBB issue...and a huge legal matter...doesnt that seem a little f***ed up to you.

 

[Brainonska511]

Originally posted by: Blaid
they retain the right to f*** up our credit score? just because they want to? That seems like a BBB issue...and a huge legal matter...doesnt that seem a little f***ed up to you.

I'm not sure how it would screw with your score, but spending a high percentage of your credit already f***s with your score enough on its own. Someone else will need to comment on how a company cancelling the card would affect your score.

 

[Fingolfin269]

You decided to build up your credit by buying random crap at Best Buy?

 

[Baked]

Sounds like you have no idea how a CC works.

 

[Whoozyerdaddy]

Originally posted by: Blaid
they retain the right to f*** up our credit score? just because they want to? That seems like a BBB issue...and a huge legal matter...doesnt that seem a little f***ed up to you.

Read your agreement. They have the right to cancel the card whenever they want. HSBC specializes in high-risk credit. When they see certain spending habits I'm sure it raises a red flag for them.

Dude gets a card... buys one really expensive thing... No problem. Dude gets a card... buys lots of little things... Flag.

What they did won't mess up your credit score any more than you maxing out your card. If you want to build credit get a credit card. If you can't get a credit card get a secured card.

 

[Blaid]

hers what we thought.....if we purchase alot of stuff and then make monthly payments a little over the minimum each month for about 6 months, then pay it all off...we build our credit history...no?

would someone like to explain it to me..i would love to learn..and i appologize for the language in previous posts

 

[Kaido]

Originally posted by: Whoozyerdaddy

Originally posted by: Blaid
they retain the right to f*** up our credit score? just because they want to? That seems like a BBB issue...and a huge legal matter...doesnt that seem a little f***ed up to you.

Read your agreement. They have the right to cancel the card whenever they want. HSBC specializes in high-risk credit. When they see certain spending habits I'm sure it raises a red flag for them.

Dude gets a card... buys one really expensive thing... No problem. Dude gets a card... buys lots of little things... Flag.

What they did won't mess up your credit score any more than you maxing out your card. If you want to build credit get a credit card. If you can't get a credit card get a secured card.

Yeah, Citicard has a flag system like that. If you buy one or two things you're fine, but if you buy 6 or 7 things you get flagged. I was at the mall shopping with my wife about a month ago and we picked up a few things, then hit the food court. Like 15 seconds after I paid at Arby's, I got a call from Citicard asking me if my credit card had been stolen and had me verify all my purchases that night, including the Arby's transaction.

 

[Squisher]

Originally posted by: Blaid
............. HSBC wont tell us anything..............

Huh? Why wouldn't they tell you?

What would be the point of keeping it secret?

 

[Whoozyerdaddy]

Originally posted by: Blaid
hers what we thought.....if we purchase alot of stuff and then make monthly payments a little over the minimum each month for about 6 months, then pay it all off...we build our credit history...no?

would someone like to explain it to me..i would love to learn..and i appologize for the language in previous posts

You don't have to load up the credit card. You really don't even have to use it. You only have to use it enough to keep them from cancelling the acct. (Some cards will auto cancel if there is no action on the card for a certain amount of time) Just keeping the account active will do wonders for your score.

 

[spidey07]

wow, how long did it take to screw up your credit?

Pull out your agreement and read every single line of it. There is something you did to cause them to cancel it.

Or here's a novel idea, call the card company and find out what is up.

 

[Blaid]

Originally posted by: Squisher

Originally posted by: Blaid
............. HSBC wont tell us anything..............

Huh? Why wouldn't they tell you?

What would be the point of keeping it secret?

I dont know....we called and asked for a manager and after about 30 minutes of crying and talking, the manager reinstated the card...

so problem solved...but..my enw question is, how do i build up credit properly?

 

[Baked]

Originally posted by: Blaid
hers what we thought.....if we purchase alot of stuff and then make monthly payments a little over the minimum each month for about 6 months, then pay it all off...we build our credit history...no?

would someone like to explain it to me..i would love to learn..and i appologize for the language in previous posts

No. You buy stuff like you regularly would w/ the CC and pay the bill in full when it comes. Don't miss a single payment, don't ever be late, and never max out your CC.

 

[altonb1]

Originally posted by: Blaid

Originally posted by: Squisher

Originally posted by: Blaid
............. HSBC wont tell us anything..............

Huh? Why wouldn't they tell you?

What would be the point of keeping it secret?

I dont know....we called and asked for a manager and after about 30 minutes of crying and talking, the manager reinstated the card...

so problem solved...but..my enw question is, how do i build up credit properly?

Man Card Cancelled without Authorization!

 

[Viper GTS]

Having credit cards for the sake of building credit is good.

Buying lots of random crap under the guise of "credit building" is bad.

Pay off the card ASAP, don't drag it out. If you have a $60 payment due that tells me you basically maxed out the card (since 2-3% of a balance is a normal minimum). High utilization is terrible for your credit, get that down as fast as possible. Return some of the random crap you bought, you probably don't really need it.

In the future, keep your utilization as low as possible. High utilization with nowhere to balance transfer to is an invitation to ratejack. I'm sitting at about ~12% utilization right now and even that is too high.

Viper GTS

 

[Kyle]

Originally posted by: Blaid

Originally posted by: Squisher

Originally posted by: Blaid
............. HSBC wont tell us anything..............

Huh? Why wouldn't they tell you?

What would be the point of keeping it secret?

I dont know....we called and asked for a manager and after about 30 minutes of crying and talking, the manager reinstated the card...

so problem solved...but..my enw question is, how do i build up credit properly?

just open a card or two...buy a few things a month and pay it off in FULL each month. The longer you have cards open and the more OPEN credit available, the better the score. Just dont miss any payments, and for god's sake dont rack up a huge balance trying to "build" your score. Building debt /= building credit.

 

[mugs]

Duuuuuuude you should have come here first before you decided to "help" your credit score by maxing out your only credit score.

 

[mugs]

Originally posted by: Blaid
I dont know....we called and asked for a manager and after about 30 minutes of crying and talking, the manager reinstated the card...

so problem solved...but..my enw question is, how do i build up credit properly?

Pay off your card. In full. Every month.

 

[kranky]

Pay off your card right away. Do nothing for six months. Then apply for a Visa or Mastercard (preferably a student version). DO NOT apply for it with your girlfriend.

See, the problem is having a Best Buy card means the only way to build your credit is to spend money at Best Buy. And that means you're going to buy stuff you don't even need.

You made a bad move getting a card with your gf. If you break up tomorrow, and she spends $1000 buying stuff and doesn't pay, you will have to pay the bill or else your credit will be trashed as well as hers. I would get your name off the account as soon as you get a Visa or MC in your own name.

 

[shortspanishguy]

go to fatwallet.com and look at the finance section.

 

[sswingle]

Ahh, to be young and stupid again...

 

[jagec]

Originally posted by: Blaid
hers what we thought.....if we purchase alot of stuff and then make monthly payments a little over the minimum each month for about 6 months, then pay it all off...we build our credit history...no?

would someone like to explain it to me..i would love to learn..and i appologize for the language in previous posts

That's a great way to go into debt, not a great way to build your credit history.

Don't carry a balance. Ever. Sure, in some small ways it helps your credit history, but you're only 20, you don't need a high FICO until you're buying a house or something. Just pay your cards off in full, every month.

 

[kranky]

Originally posted by: shortspanishguy
go to fatwallet.com and look at the finance section.

But don't post, just search. Posting new threads is frowned upon, from what I can tell. They will flame you for not searching and point you to a thread from 2001 where someone asked a very similar question.

 

[AgaBoogaBoo]

Should have paid it off in full at the end of a month