Reply
Established Member
bewildered
Posts: 23
Registered: ‎04-12-2007
0

Chase closing account for no reason?

Hi All,  I'm dumbfounded right now.  Received a letter from Chase today indicating that they are closing an account because of one of the threee principal reasons:

 

Recent past due(s)

Total bankcard balance has grown too fast

Bankcard balance grew too fast compared to credit limit and time on file

 

What????  The particular account they are closing has been at a zero balance for over 3 years, not ever a delinquency in payment, never an overlimit balance, zippo.  They indicate I should check my credit report from Experian if I had questions about their decision.  Which I have done, nothing is showing outstanding, no derogatory history and balance is still zero.  Will this now make my score go down?  Should I just allow it to close and be done with it? Or do I call them on it based on the incorrect principal reasons they list? I can understand if they are closing it because of non use, but say it if that is the case.  The account was opened in 2005, if after 4 yrs do they automatically close?  Based on the reasons they outlined will this ding me on my score?

 

Has anyone else experienced this with Chase and/or on other cards? 

 

Thanks 

Next stop...800+ Club!!!
9/11/09: TU 734, EQ 745, EX ???
Regular Contributor
FocusOnFICO
Posts: 180
Registered: ‎05-01-2009
0

Re: Chase closing account for no reason?

Bewildered,

 

Welcome to the forum.  There are many who are, and have been, in your position.  Please search the forum for threads re: Chase--there will be plenty to answer all of your questions.  You will have a lot of posts to review, but I would recommend those that posted their results from recons, etc.


Starting Score: TU 766 EQ 788
Current Score: TU 788 EQ 811
Goal Score: TU 800 EQ 800


Take the FICO Fitness Challenge
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
0

Re: Chase closing account for no reason?


bewildered wrote:

...Recent past due(s)

Total bankcard balance has grown too fast

Bankcard balance grew too fast compared to credit limit and time on file



bewildered, what do the balances on your other cards look like? That bit about "total" bankcard balance made me wonder.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Member
bewildered
Posts: 23
Registered: ‎04-12-2007
0

Re: Chase closing account for no reason?

The closed Chase is zero balance, limit $1700.  The other Chase account is at zero balance, limit $5700.  Discover Card is at zero balance, limit 8500. HBSC is at zero, but just today put $123 on it, but will PIF by next statement, limit is $5000.  AMEX card current balance is $3333, no limit, I usually pay each month what they ask for.  Part of the charges go to the flexible spend category.  That's it for revolving CC. 

 

Thanks

Next stop...800+ Club!!!
9/11/09: TU 734, EQ 745, EX ???
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
0

Re: Chase closing account for no reason?

OK, then, that's just Chase being insane. It looks like you're in good shape.

This wasn't a WaMu card in a previous life, was it?
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Member
bewildered
Posts: 23
Registered: ‎04-12-2007
0

Re: Chase closing account for no reason?

no, definitely not a past WaMu account.  it is insane, it's all right there in my credit reports, nothing illogical about what is there, but Chase I swear is trying to make people second guess themselves and make them feel they are the ones insane.  I am just worried that my score as of today will be dinged by this closure. 

 

thanks. 

Next stop...800+ Club!!!
9/11/09: TU 734, EQ 745, EX ???
Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
0

Re: Chase closing account for no reason?

Since you have $0 balances on your credit cards (excluding the AmEx charge card), the closure shouldn't affect your scores. The designation of "closed by lender" is not part of scoring, and the way things are going, everyone will have at least one of these on their reports.

The closed account will continue to be factored into your age and scoring for 10 years, or until Equifax gets bored and deletes it, probably still 10 years on the others, though.

You might want to read fused's "Closing Credit Cards", linked in my siggy below. hth!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Frequent Contributor
nathan
Posts: 411
Registered: ‎04-18-2007
0

Re: Chase closing account for no reason?

Hmmm. It looks like it is not a bad idea to start looking for a replacement cc. Chase hasn't closed mine yet, but I will be prepared when they do. I wonder when chase will eventually stop this erratic behavior.  :smileymad:
Regular Contributor
boireann
Posts: 189
Registered: ‎03-10-2008
0

Re: Chase closing account for no reason?

Seem to be standard operating procedure for most of the banks now.  Don't use your card at least once in 3mo or 6mo?  Bang, you're cut off.  Doesn't matter how great of a customer you are.   Or how long you've been with them.  The banks knee-jerk reaction to economy right now and all their bad debt.   Either chase credit limits down or cut off unused open ones.

 

 

01/07 scores: Too scared to find out after looking at my free CRA reports
03/08 scores: TU: 660 EQ: 646 EX: 624
09/09 scores: TU: 735 EQ: 778 EX: ???
02/10 scores: TU: 779 EQ: 801 EX: 798 (home loan officer pull)
03/14 scores: TU 799 EQ: 809 EX: 817 (car loan credit union pull)
All that hard work paid off!!!! I'm now a happy home owner with an awesome interest rate!

CC Limits Garden Amex Clear $23000, USAA World Amex $15000, USAA Wold MasterCard $15000, BECU Visa $10,000, PenFed Visa $15000. Took a long time to get nice limits and low interest from that first app to BECU for $500 when I first started cleaning up my reports.
Established Member
bewildered
Posts: 23
Registered: ‎04-12-2007
0

Re: Chase closing account for no reason?

I will check it out. Thanks so much for your help!
Next stop...800+ Club!!!
9/11/09: TU 734, EQ 745, EX ???

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}