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Chase closed my acct. SURPRISE!

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Established Contributor

Chase closed my acct. SURPRISE!

 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!

 

9/18/08 TU=707 EQ=706 EX=702
9 REPLIES
Senior Contributor

Re: Chase closed my acct. SURPRISE!

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.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Established Contributor

Re: Chase closed my acct. SURPRISE!

So it shouldn't effect my score adversely?

9/18/08 TU=707 EQ=706 EX=702
Valued Contributor

Re: Chase closed my acct. SURPRISE!

 


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.

 

Citi Hilton Reserve 22.3K | Citi Thank You 8.2K | CSP 15.5K | Chase Freedom 10K | Chase BA 15K | Chase United 8.5K | Chase Marriott 5K | Discover IT 9K | Club Carlson 13K | Amex SPG 20K | BofA Cash Rewards 11K | BofA Cash Rewards 50K
Valued Contributor

Re: Chase closed my acct. SURPRISE!

 


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?

Citi Hilton Reserve 22.3K | Citi Thank You 8.2K | CSP 15.5K | Chase Freedom 10K | Chase BA 15K | Chase United 8.5K | Chase Marriott 5K | Discover IT 9K | Club Carlson 13K | Amex SPG 20K | BofA Cash Rewards 11K | BofA Cash Rewards 50K
Established Contributor

Re: Chase closed my acct. SURPRISE!

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.

9/18/08 TU=707 EQ=706 EX=702
Established Contributor

Re: Chase closed my acct. SURPRISE!

 


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 :-(

 

Valued Contributor

Re: Chase closed my acct. SURPRISE!

 


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.

Citi Hilton Reserve 22.3K | Citi Thank You 8.2K | CSP 15.5K | Chase Freedom 10K | Chase BA 15K | Chase United 8.5K | Chase Marriott 5K | Discover IT 9K | Club Carlson 13K | Amex SPG 20K | BofA Cash Rewards 11K | BofA Cash Rewards 50K
Moderator Emerita

Re: Chase closed my acct. SURPRISE!


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.

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Established Contributor

Re: Chase closed my acct. SURPRISE!

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!

9/18/08 TU=707 EQ=706 EX=702