Automatic CLD with Chase?

[rlx01]

There's way too much judgement in this thread.

OP's downfall was in paying the minimum. Just pay like $10-$20 more a month next time.

Call to see if they'll reinstate. Otherwise you've learned a lesson and made 10%.

[Anonymous]

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@mikelo22 wrote:

Just a recomendation for the future: When you are running a balance on a card, you should still pay more than the minimum payment. Just paying the minimum can raise red flags and cause CCC's to do crazy things like this. 

I currently have balances on my Citi DC, Amex BCE, and Discover. I'm taking advantage of the 0% intro. But I'm still paying $50+/month on each, which is well over the minimum payment.

I'm not the least bit surprised that Chase took AA. The 95% util coupled with minimum payments tripped a wire in their system.

I agree.  I have 4 cc's with a decent balance on them right now.  But paying 1k & up to 2.5k a month on them.  Also  talking 16k.  It's all 0% but I don't want to make anyone cc nervous.  And I can pay it all off if I wish.  Just experimenting right now.  But minimum on the 95% UT, can cause Chase to freak out.  I think any of them would.  I have done 99% on one card but paid much more every month.    I read some advice on here about at least paying twice the minimum when you do that.  

[Anonymous]

Being a creative beat the system person myself I understand what you did.

You got a $9500 0% interest for a year card and figured you would use the banks money at no cost to you to fund an investment, pay the minimum payment for 11 months then cash out your investment on month 12, pay the bank back after profiting on the banks dime.

Before the 2007-2008 banking crash no biggie. Banks do that with their funds all the time and Chase is notoriusly crooked in that respect, but now after the econony almost went into depression, they watch cardholder behavior with a fine tooth comb.

Technically it is your card and as long as you pay the minimum each month on time you should be able to never suffer AA, but bank lobbyists work politicians to allow bankers legal leeway to heavily police consumer accounts.

You should have gotten if possible another $10,000 0% for a year card and put $4500 on each one paying $150-$175 per month on each until month 12 and you would have been ok.

[Anonymous]

Sorry that this happened to you.

All banks pretty much expect you to make more than the minimum payment every month, especially on high utilization cards. They also expect you to swipe every card at least once every 3 months. It's generally best practice to swipe everything once a month and pay at least 2x the "minimum" to avoid Adverse Action. 

[kdm31091]

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@rlx01 wrote:
There's way too much judgement in this thread.

OP's downfall was in paying the minimum. Just pay like $10-$20 more a month next time.

Call to see if they'll reinstate. Otherwise you've learned a lesson and made 10%.

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People love to throw around the word "judgement".

There is no judgement. OP said (as facts): they're maxed out and paying the minimum. They have money in stocks. If one doesn't want an opinion about something, then they shouldn't make a thread, or mention certain details that they "do not want to discuss".

Some people here are of the opinion that if OP really wants their limit reinstated they need to pull money from stocks and pay the balance, though as Irish mentioned, Chase may well CLD the CSP too.

Really, it is what it is. OP has made himself look bad and risky to Chase. The only likely fix is time, patience and responsible management of cards. Nothing is going to be fixed overnight.

[takeshi74]

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@-Cal- wrote:

95% percent utilization and paying minimum balance are most likely what caused your CLD. 

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Already stated multiple times but this.  More so the high utilization and maxed card than the payment amount.  Payment only really matters in terms of how it impacts utilization.  Minimum payments probably won't drop the utilization quickly enough and sitting around with a maxed card is a major red flag.  As always, short term high utilization generally isn't an issue but prolonged high utilization can lead to AA.

Utilization matters even if there is a 0% offer.  If taking advantage of a 0% offer then consider how long it would take you to get the balance back down under 50% and then under 30%.  If it's more than a few months (even a few may be too many depending on the creidtor) then you're probably running a risk of AA.

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@mohammadmoghimi wrote:

Funnily enough, I recently received an auto CLI from another bank (bofa).

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Creditors vary in their underwriting and risk assessment.  Don't assume them to all be exactly the same in these regards.

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@Anonymous wrote:

They also expect you to swipe every card at least once every 3 months. 

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Creditors also vary on policies regarding closure due to inactivity.  Some do not.  Others do so at varying points.  Don't rely on generalizations like this and confirm the exact policies with each of your creditors.  Every 3 months is probably safe for most but may not be necessary.

[Anonymous]

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@rlx01 wrote:
There's way too much judgement in this thread.

OP's downfall was in paying the minimum. Just pay like $10-$20 more a month next time.

Call to see if they'll reinstate. Otherwise you've learned a lesson and made 10%.

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The judgments are valuable if they help OP understand why this happened, and/or help someone lurking in the thread learn from OP's mistake without having to experience the consequences themselves. That's one of the best benefits of forums like this one.

[gdale6]

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