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Established Member
BaseballFan
Posts: 31
Registered: ‎09-27-2010

Chase is at it AGAIN!!!

Have a Chase card that was opened in May 2005.  Limit was $6500.  In the past few years they have been naughty and reduced my credit line.  First time was in June 2009 when they decreased to $3400 because I had the audacity to use a convenience check that they offered me, they reinstated to $5500, then in Fall 2009 dropped it back to $4400.  Made large payment in March, 2010 and limit was reduced to $3700.  At the time, I didn't argue.  Limit held steady at $3700 for all of 2010, I carried a balance close to limit some of that time, never made large payments trying to avoid losing the credit line again.  I made an effort to pay down a bunch of balances this spring, waited until after those had posted before I made a big payment on Chase.  Paid $1000 in March, no fallout; paid another $500 in April to get the balance to under 50% of the limit.  Signed on today to review new statement and BAM limit is reduced to $2400!!!  My credit has greatly improved from where it has stood at various points over the last 5 years, I have NEVER been late or over limit on this account.  I am baffled and greatly annoyed.  I like the int rate on this card, and am beyond frustrated at their balance chasing.

 

Any advice?  I already fired off an email to customer service asking why the limit reduction.

Mega Contributor
Creditaddict
Posts: 18,993
Registered: ‎10-23-2007

Re: Chase is at it AGAIN!!!

My suggestion is to find a new credit card!

 

Chase has cut my cards a few times over the years.  The biggest was back in 07 I believe, I paid off my 15k balance and then asked for a cli which quickly brought a CLD to 1k!

Fico Scores: EQ 657 Cabelas, TU 653 Barclay, EX 699 Wells (07-27-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Fidelity Amex $25k (AU)
Lowest Limit: Express $300
Over 30 Cards in between :smileytongue:
Moderator Emerita
LilMirth
Posts: 3,091
Registered: ‎08-09-2008

Re: Chase is at it AGAIN!!!


BaseballFan wrote:

Have a Chase card that was opened in May 2005.  Limit was $6500.  In the past few years they have been naughty and reduced my credit line.  First time was in June 2009 when they decreased to $3400 because I had the audacity to use a convenience check that they offered me, they reinstated to $5500, then in Fall 2009 dropped it back to $4400.  Made large payment in March, 2010 and limit was reduced to $3700.  At the time, I didn't argue.  Limit held steady at $3700 for all of 2010, I carried a balance close to limit some of that time, never made large payments trying to avoid losing the credit line again.  I made an effort to pay down a bunch of balances this spring, waited until after those had posted before I made a big payment on Chase.  Paid $1000 in March, no fallout; paid another $500 in April to get the balance to under 50% of the limit.  Signed on today to review new statement and BAM limit is reduced to $2400!!!  My credit has greatly improved from where it has stood at various points over the last 5 years, I have NEVER been late or over limit on this account.  I am baffled and greatly annoyed.  I like the int rate on this card, and am beyond frustrated at their balance chasing.

 

Any advice?  I already fired off an email to customer service asking why the limit reduction.


I'm really sorry to hear about the CLD and balance chasing. :smileysad:  It's, unfortunately, a recurring theme that we see when balances are carried for an extended period of time, on maxed out cards, with minimum payments being made. As soon as you start making a dent in the debt, they go after the credit line to make sure that you can't charge it up again.

 

The thing is that you created a bit of a catch-22. Your carrying a balance close to the limit, while making small payments more than likely singled you out as a risk. I think it's a bit of myth that you can effectively protect your credit line by keeping the card maxed out, and making the minimum (or close to it) payment. The bank can close your card with the balance. They can chase you right down to zero, etc... And, if you're on their radar, and making a concerted effort to do exactly what's got them nervous, you're not going to get off of their radar.

 

If you can PIF, I'd do that, and let the credit line chips fall where they may. You're better off demonstrating that you don't need their line of credit-- it's ironic how that makes them clamor for your business. Once you've PIF'd, use the card, and continue to PIF. Then, ask for the CLI. Show them that you're not on the brink, financially (and I'm not saying that you are, I'm just using the "minimum payments" view that your lender may have), and watch them come back around to your side.

-------------------------------------------


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"However gradual may be the growth of confidence, that of credit requires still more time to arrive at maturity” ~ Benjamin Disraeli

Valued Contributor
vish1
Posts: 1,129
Registered: ‎01-20-2011

Re: Chase is at it AGAIN!!!

I am almost sure that this card is dead. This is pretty common for banks to do balance chasing and I don't recall many success stories about reversing this. Don't keep any high hopes of reviving this card. Unfortunately, I believe you need to look for alternatives.

 

I have no clue about your overall credit situation, but if you can, you should get another card. If you can't you should start making strides into the path that will enable you to get another card soon.

 

If you can share more about your credit situation, I am sure we can chime in and give you more advice.

Amex PRG | BoA Cash rewards 35K | BoA Cash rewards 7K | Citi AAdvantage 15 K | Chase Sapphire Preferred 11 K | Chase Freedom 10k | Chase United 5 K | Chase Southwest 5K | Chase Airtran 6.4K | Discover IT 8K | Barclays US Airways 7.8 K | DCU 3 K | US Bank Flex Perks 8K | Toys r US 6 K | JC Penney 4.6 K | Macy's 1200 | Kohl's 600
Ex Fico: 762 (PSECU)
EQ Fico: 764 (DCU)
TX Fico: 773 (Discover)
Mega Contributor
Creditaddict
Posts: 18,993
Registered: ‎10-23-2007

Re: Chase is at it AGAIN!!!

 


LilMirth wrote:

BaseballFan wrote:

Have a Chase card that was opened in May 2005.  Limit was $6500.  In the past few years they have been naughty and reduced my credit line.  First time was in June 2009 when they decreased to $3400 because I had the audacity to use a convenience check that they offered me, they reinstated to $5500, then in Fall 2009 dropped it back to $4400.  Made large payment in March, 2010 and limit was reduced to $3700.  At the time, I didn't argue.  Limit held steady at $3700 for all of 2010, I carried a balance close to limit some of that time, never made large payments trying to avoid losing the credit line again.  I made an effort to pay down a bunch of balances this spring, waited until after those had posted before I made a big payment on Chase.  Paid $1000 in March, no fallout; paid another $500 in April to get the balance to under 50% of the limit.  Signed on today to review new statement and BAM limit is reduced to $2400!!!  My credit has greatly improved from where it has stood at various points over the last 5 years, I have NEVER been late or over limit on this account.  I am baffled and greatly annoyed.  I like the int rate on this card, and am beyond frustrated at their balance chasing.

 

Any advice?  I already fired off an email to customer service asking why the limit reduction.


I'm really sorry to hear about the CLD and balance chasing. :smileysad:  It's, unfortunately, a recurring theme that we see when balances are carried for an extended period of time, on maxed out cards, with minimum payments being made. As soon as you start making a dent in the debt, they go after the credit line to make sure that you can't charge it up again.

 

The thing is that you created a bit of a catch-22. Your carrying a balance close to the limit, while making small payments more than likely singled you out as a risk. I think it's a bit of myth that you can effectively protect your credit line by keeping the card maxed out, and making the minimum (or close to it) payment. The bank can close your card with the balance. They can chase you right down to zero, etc... And, if you're on their radar, and making a concerted effort to do exactly what's got them nervous, you're not going to get off of their radar.

 

If you can PIF, I'd do that, and let the credit line chips fall where they may. You're better off demonstrating that you don't need their line of credit-- it's ironic how that makes them clamor for your business. Once you've PIF'd, use the card, and continue to PIF. Then, ask for the CLI. Show them that you're not on the brink, financially (and I'm not saying that you are, I'm just using the "minimum payments" view that your lender may have), and watch them come back around to your side.


Couldn't agree more... once you are in the banks sites to keep an eye on your account and your credit... not much is going to change it.  Once you finish paying off Chase and your other cards, then go back to Chase and say hey do you think you can give me my CL back now that it's paid off. (Hard pull of course with Chase).

 

Fico Scores: EQ 657 Cabelas, TU 653 Barclay, EX 699 Wells (07-27-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Fidelity Amex $25k (AU)
Lowest Limit: Express $300
Over 30 Cards in between :smileytongue:
Valued Contributor
visorboy1974
Posts: 1,129
Registered: ‎05-17-2010

Re: Chase is at it AGAIN!!!

 


Creditaddict wrote:

My suggestion is to find a new credit card!

 

Chase has cut my cards a few times over the years.  The biggest was back in 07 I believe, I paid off my 15k balance and then asked for a cli which quickly brought a CLD to 1k!


I would tend to agree with this.  Or, if you're willing to deal with Chase's seemingly schizophrenic handling of your account, deal with it, try to PIF as much as you can and hope that they bump you back up. 

 

Established Member
BaseballFan
Posts: 31
Registered: ‎09-27-2010

Re: Chase is at it AGAIN!!!

Well, the reason I let that balance kind of sit for a while was I was paying down all other accounts before paying theirs because this is exactly what I was afraid of.  It was my largest credit line.  Interestingly, the reasons they cite have NOTHING to do with balances or available credit (history of late payments and history of adverse accounts).   Bear in mind I have never been even a DAY late on this account, but I did have one new 30 day late post in February when I paid off a Wells Fargo account and they didn't post it correctly.  I'm putting the heat on WF to delete that erroneous report, but they haven't yet.  Other than that, I'm clean on anything since the last time they reduced my CL so it just seems so wrong of them to do this now.  My worst year was late 2007 early 2008 when I had siginificant income loss and a rash of late payments (not to Chase though). 

 

I sent another response asking them to reconsider, I'm sure they'll say no, but I am going to move up the ladder on this one, can't hurt to try.

 

I have no clue on my FICO score, been waiting to pull until I got this account util below 50% (so much for that thank you very much) as I had paid all other cards completely off with the exception of 1 that has $1k reporting on a $1800 CL that I'm using a 0% interest financing option on.  I do have 2 30 day lates in the past 12 months...one on a utility bill (GRRRR mistake) and one that is the erroneous report on WF from just back in February.

 

On second thought, I think I may follow your advice and just pay it off and let the chips fall where they may.  They've made enough money off of me trying to stay in their good graces.  I'm sick to death of this FICO game.  Hit some hard times, and you suffer for life, even when you try to do the right thing.

Moderator Emerita
LilMirth
Posts: 3,091
Registered: ‎08-09-2008

Re: Chase is at it AGAIN!!!


BaseballFan wrote:

 

On second thought, I think I may follow your advice and just pay it off and let the chips fall where they may.  They've made enough money off of me trying to stay in their good graces.  I'm sick to death of this FICO game.  Hit some hard times, and you suffer for life, even when you try to do the right thing.


Exactly! Don't throw away your $$$ to Chase, carrying a balance for even a moment longer than necessary. Pay it off as quickly as you can. Then, it won't matter one iota what your credit line is. You can also decide to be rid of them if you so choose.

 

But, just to point out one thing-- You don't suffer, for life, following credit missteps/derogs. You might very well suffer for 7 years, to some degree, but with positive history diluting the bad, time will mend what ails your credit score.

-------------------------------------------


Friendly, Supportive & Respectful


Understanding Your FICO Score  |  Credit Scoring 101  |  Common Abbreviations  |  FTC: FCRA Links  |  FTC: FDCPA Links  |  Opt-Out  |  State Resources


"However gradual may be the growth of confidence, that of credit requires still more time to arrive at maturity” ~ Benjamin Disraeli

Established Contributor
veracious
Posts: 684
Registered: ‎04-21-2010

Re: Chase is at it AGAIN!!!

I also agree with the others about getting rid of Chase.

 

If your scores allow, look for a balance transfer card, and start anew.

_________________________________________________
"You may never know what results come of your actions,
but if you do nothing, there will be no result" ~ Mahatma Gandhi
Regular Contributor
jj10939
Posts: 112
Registered: ‎03-09-2009

Re: Chase is at it AGAIN!!!

If you are looking for an alternative card, I would seriously consider Discover.  They do not take AA on your account for carying a balance close to your credit line.  Trust me on that..I carried a balance at my limit for almost two years!  Since paid off btw :smileywink:

 

I had Chase, but decided it was one to close.  Of all my cards, I found they were the worst when it came to phone customer service.  Among the best cards in my opinion would be Discover, Citi, and believe it or not Capital One (although you must call backdoor number for everything and ignore the number on the back of your card.)

 

Good luck with Chase though!


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