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Established Contributor
Posts: 554
Registered: ‎06-02-2012
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Re: Capital One and Chase Freedom cancelled my credit cards. HELP!

[ Edited ]

im going to jump in now that the water is warm. Ill take some of the heat off of you, I had a head start on credit also,  When I was 13-15 years old my dad added me on his amex and bank of the west credit cards and co-signed for  my first jeep. When I was 18 i had 3-4 years of history, my first credit card in 03 was a 6k discover card, With me always working and using the hell out of the card It was upped to 25k and got my own amex back dated to 1984, it was great I was untouchable. But I screwed myself, some site called boostmyscore and get720 or some crap like that got intouch with me (dont remember exact way it happened) but they would pay me 500 bucks to add authorized users to my account, the cards came to me, I distroyed them and went on about my way. Every 2 months they would call and Id add 2 more people to both cards (making an extra 2k every 2 months) it was going good till I was in tulsa ok welding and my amex wouldnt work at the gas pump, i figured it was just they didnt accept amex, used discover and it worked. Got to the hotel and used discover and it was declined. Used my bank card and went inside and called...

 

Mr. Popham we have closed your accounts for you farming them out to people that are unrealated (for a profit) and having no intentions of them using the card. you have been closed and full payment is due asap! now! (discover) then (amex) special response team: same story but they said I would lose my card and backdating and if I wanted a card from them I was welcome to reapply when I had the guts... it took 9 years for them to give me another card.  Other individuals have had the same happen to them.

 

Well then I lost my job and then got deployed. When I got back my credit was hosed and it sure would have been nice to fall back on 20 years of history and go onabout my life. I got greedy and the game dosent like being played with. I learned, you learned some do, some dont. I was doing it for the money and it never affecting me till everything crashed. I would get a FNBO card and an amex if you dont have one and leave well enough alone. your scores are stable with as much history as you have. But, if you start losing cards with 10+years of history you can only play the (I wasnt using them card) for so long till some UW picks up on a problem. Expecilly with the CRAs reporting balances and keeping a years worth of balance history now.

 

Just IMO be careful and use this as a learning experience. me and my wife are the only ones on our cards. Maybe my dad one day or my brother but that will only be them. EVER

"As long as the music is playing, you've got to get up and dance," he said. "We're still dancing."---Prince CEO Citi Bank

"Money isn't the most important thing in life, but it's reasonably close to oxygen on the "gotta have it" scale". ~Zig Ziglar
Senior Contributor
Posts: 3,491
Registered: ‎07-25-2008
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Re: Capital One and Chase Freedom cancelled my credit cards. HELP!

^ Thanks for sharing!

 

People always want to believe there's no risk in doing things like that.

 


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Posts: 15,442
Registered: ‎04-09-2011
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Re: Capital One and Chase Freedom cancelled my credit cards. HELP!

That is something I would never do. I won't give anyone the opportunity to ruin my credit.




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Established Contributor
Posts: 554
Registered: ‎06-02-2012
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Re: Capital One and Chase Freedom cancelled my credit cards. HELP!


LS2982 wrote:

That is something I would never do. I won't give anyone the opportunity to ruin my credit.


 

I understand completly but the way this works is xyz company has people with great credit sign up and say I have card abc with 25000 limit and 10 years history, 100 dollar balance.... no lates, and DEF card that has 35000 limit with 0 balance and 5 years old.

 

They call you and give you mary janes info ssn, dob, you add her to your card and the issurer mails you the card. you distroy the card and after next months statement login online and close the au accounts. in 2 weeks you get a check for your service.... no risk except the ancillary risk of card clousure. It got so popular that everyone is cracking down on it. I just learned the hard lesson 9-10 years ahead of this gentalman

"As long as the music is playing, you've got to get up and dance," he said. "We're still dancing."---Prince CEO Citi Bank

"Money isn't the most important thing in life, but it's reasonably close to oxygen on the "gotta have it" scale". ~Zig Ziglar
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Posts: 3,406
Registered: ‎12-19-2012
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Re: Capital One and Chase Freedom cancelled my credit cards. HELP!

I think you got the answer you wanted, unfortunately. Your actions will definitely help others avoid the same pitfalls. I have never heard of anything being done like this before. I think your cards and limits are gone for good. Maybe read the fine print that these card companies have regarding adding authorized users. I am sure there is something in there regarding doing what you did.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Mega Contributor
Posts: 15,442
Registered: ‎04-09-2011
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Re: Capital One and Chase Freedom cancelled my credit cards. HELP!


swpopham wrote:

LS2982 wrote:

That is something I would never do. I won't give anyone the opportunity to ruin my credit.


 

I understand completly but the way this works is xyz company has people with great credit sign up and say I have card abc with 25000 limit and 10 years history, 100 dollar balance.... no lates, and DEF card that has 35000 limit with 0 balance and 5 years old.

 

They call you and give you mary janes info ssn, dob, you add her to your card and the issurer mails you the card. you distroy the card and after next months statement login online and close the au accounts. in 2 weeks you get a check for your service.... no risk except the ancillary risk of card clousure. It got so popular that everyone is cracking down on it. I just learned the hard lesson 9-10 years ahead of this gentalman


In all honesty I cant really sympatize for you on it. It may not have been illegal but you had to have known it was bad to do. Making money off of it makes it worse.

 

You were gaming the system and making a profit off of it. I dont understand how that couldn't be a crime.

 

But hey no offense I just don't agree with doing anything like that, years ago or present time.

 




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
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Senior Contributor
Posts: 3,197
Registered: ‎01-24-2010
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Re: Capital One and Chase Freedom cancelled my credit cards. HELP!

Maybe it is not technically criminal.   You allowed 10 people to claim they have a financial relationship where you trusted them to use your accounts.   But that was a lie so they falsely improved their scores and you profited from it.  I think it is clearly fraudulent activity.    You got caught but your penalty is not that bad, just closed accounts.     

Frequent Contributor
Posts: 386
Registered: ‎05-23-2012
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Re: Capital One and Chase Freedom cancelled my credit cards. HELP!

OP, if you're going to apply for another card or for a CLI, I would do it now before the account closure from Chase shows up on your credit report. Best of luck.
Senior Contributor
Posts: 4,694
Registered: ‎02-23-2011
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Re: Capital One and Chase Freedom cancelled my credit cards. HELP!

[ Edited ]

Personally, I wouldn't do it and don't think it's worth the risk. 

 

But, if you give it some time, I'm sure everything will pass.  I mean, if people can be forgiven for BKs, I don't see why you can't be forgiven for this. 

 

If they wanted to stop this, then just make it so AUs don't count for the credit scoring.  Problem solved, and no one would profit selling AUs.  However, for whatever reason, they want to keep the AU scoring system (for whatever motives that eludes me), then they should expect some abuse. 

 

Relying on the "honor" system is just...ah...unrealstic.

Established Contributor
Posts: 750
Registered: ‎10-04-2010
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Re: Capital One and Chase Freedom cancelled my credit cards. HELP!

Hey OP

I wouldn't really worry about your scores dropping. It sounds like you have other credit cards. Just keep your utilization low and you should be fine. The only reason I would worry about trying to get a new card is if you think your other lenders will close your accounts for the same reason. As long as you have not piggybacked on your other open accounts, your scores should not drop much if your utilization is low. Those closed accounts will continue to report positively for 10 years.
BK in 2008, after making very stupid financial decisions.

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