Yes. I believe that before a bank would shut someone down, they would want to review the full credit report. As opposed to an existing lender who has a certain relationship with the customer, that may decide to extend more credit.
So you actually *do* believe a bank would want more info. before lowering or eliminating a credit line than it would before extending MORE UNSECURED CREDIT?
Wow.
In what way is it unsecured?
What do you mean, "In what way is it unsecured"? It seemed obvious we were taking about credit cards here. Banks don't "shut down" car loans before repossessing the vehicle; likewise, they don't "shut down" mortgages without maintaining their interest in the home. Were you referring to some other type of loan in your hypothetical, when you referred to someone defaulting on three loans with one bank?
(And regardless, you claimed the defaults never made it to the person's credit report, so why would the full report factor into the hypothetical shutdown? The bank wouldn't have any additional derogatory info. than it already had internally.)