topic Re: Chase closed my acct. SURPRISE! in Credit Cards

Chase closed my acct. SURPRISE!

so_confused — Sun, 13 Mar 2011 21:19:28 GMT

So I have no baddies my over all utli is a bit high around 50% but down from about 70% this time last year. Funny thing is Disco just gave me a CLI...so confused!

My question is ...what will happen if I just carry that balance paying minimum while accelerating the pay off of my other cards? Any real down side?

It looks like they are still reporting credit line of 3800 and balance of 1900+. I don't want to reward them for treating me badly...I have never paid late or even paid just

minimum. I have had high balances for the last year because of personal reasons. I have not added to my debt for over a year and have been paying it down. I have about

$28,000 in available credit. I'm not sure whats up with Chase, you would think if they were worried I was going to default they would have closed my account last year

when they cut my credit line from 5k to 3.8k which maxed out my card at the time.

Currently all my FICOS are above 700!

Thanks for any help!

Re: Chase closed my acct. SURPRISE!

Walt_K — Sun, 13 Mar 2011 21:24:08 GMT

I don't think anything happens if you just pay the minimum and focus your efforts on your other cards, except to the extent that if your Chase card has a higher APR, you are penalizing yourself in interest. If Chase is your highest interest card, I'd pay it off as fast as you can. If you don't want to reward them for canceling your card, don't do business with them again. But the more interest you pay them the more you are rewarding them. Now if you have other cards with higher APRs, concentrate on them.

Re: Chase closed my acct. SURPRISE!

so_confused — Sun, 13 Mar 2011 22:14:49 GMT

So it shouldn't effect my score adversely?

Re: Chase closed my acct. SURPRISE!

vish1 — Mon, 14 Mar 2011 03:31:22 GMT

so_confused wrote:
So it shouldn't effect my score adversely?

AFAIK, it will have absolutely no impact on your scores as they are reporting both limit and balance and both will be used in fico scoring.

Re: Chase closed my acct. SURPRISE!

vish1 — Mon, 14 Mar 2011 03:44:52 GMT

so_confused wrote:
So I have no baddies my over all utli is a bit high around 50% but down from about 70% this time last year. Funny thing is Disco just gave me a CLI...so confused!
My question is ...what will happen if I just carry that balance paying minimum while accelerating the pay off of my other cards? Any real down side?

It looks like they are still reporting credit line of 3800 and balance of 1900+. I don't want to reward them for treating me badly...I have never paid late or even paid just
minimum. I have had high balances for the last year because of personal reasons. I have not added to my debt for over a year and have been paying it down. I have about
$28,000 in available credit. I'm not sure whats up with Chase, you would think if they were worried I was going to default they would have closed my account last year
when they cut my credit line from 5k to 3.8k which maxed out my card at the time.

Currently all my FICOS are above 700!

Thanks for any help!

IMO, unless you are looking to apply for new credit very soon (1-2 months), you should never worry about the impact of util distribution on your cards. You should always pay the minimum on every card and whatever you can pay more than that must go to the highest interest rate debt.

Regarding why they did not close your card earlier, they were surely having an eye on your account and counted you high risk thats why they did a CLD.

I have to ask you did your debt reduce over the last 1 year or its just that your util % dropped coz of CLI?

Re: Chase closed my acct. SURPRISE!

so_confused — Mon, 14 Mar 2011 15:53:42 GMT

No...I have been reducing my debt as fast as possible...I was helping a family member during some hard times during 2010. In 2009 my util was around 16% and lower before that. I have no baddies... never been late with anything. I just feel like they have made an error in judgment. I will not do business with them ever... under no circumstances.

Re: Chase closed my acct. SURPRISE!

ifinet — Mon, 14 Mar 2011 16:47:40 GMT

vish1 wrote:

so_confused wrote:
So it shouldn't effect my score adversely?
AFAIK, it will have absolutely no impact on your scores as they are reporting both limit and balance and both will be used in fico scoring.

It doesnt really go like that. If its a closed account then the balance counts against you (as always), but CL on a closed account doesnt have any significance :-(

Re: Chase closed my acct. SURPRISE!

vish1 — Mon, 14 Mar 2011 16:55:22 GMT

so_confused wrote:
No...I have been reducing my debt as fast as possible...I was helping a family member during some hard times during 2010. In 2009 my util was around 16% and lower before that. I have no baddies... never been late with anything. I just feel like they have made an error in judgment. I will not do business with them ever... under no circumstances.

Sure, you don't need to give them your business (It's absolutely your choice as to who you take your business to). I am not trying to tell you that they are right or anything. I am just trying to figure out for your and everyone's (including myself) benefit what could the trigger be. Do you mind sharing what your total debt was 1 year bk and how much is it now and have you had other changes to your CR like new accounts, AU anything...

What has happened once can happen again, may be with a different lender. Wondering if calling their backdoor number will get some valuable insight for everyone's benefit.

Re: Chase closed my acct. SURPRISE!

LilMirth — Mon, 14 Mar 2011 17:36:15 GMT

ifinet wrote:

vish1 wrote:

so_confused wrote:
So it shouldn't effect my score adversely?
AFAIK, it will have absolutely no impact on your scores as they are reporting both limit and balance and both will be used in fico scoring.

It doesnt really go like that. If its a closed account then the balance counts against you (as always), but CL on a closed account doesnt have any significance :-(

Actually, a closed CC, with a balance & the credit line (above zero) reporting, continues to be a factor in the utilization calculations-- both credit line & balance. As soon as the balance is "$0" the card will cease to be a factor in utilization. If the card is closed, with a balance, but has "$0" for the credit line, then the balance on that closed card will not be factored into utilization.

Re: Chase closed my acct. SURPRISE!

so_confused — Mon, 14 Mar 2011 17:36:32 GMT

No changes, and as I said my debt has not increased in over a year, I have not added anything to my balances just been paying them down!

I can do without the Chase account...Its just a matter of principle for me. Of course I chose to buy American Made products when ever possible!

Call me old fashioned! To few of us actually exercise "choice" in our spending powers, we assume we have to go alone with the "CHASES" of

the world...WE DON'T!