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New Contributor
frugal
Posts: 53
Registered: ‎06-10-2007
0

Chase just CLOSED both of my cards

[ Edited ]

I was with WAMU and I really like them. They were bought out by CHASE.  I had two cards that I have paid for on time and paid about $100 more than the minumum. One card has a $3500 credit limit (Balance, $1800) and the other one 3K CL (balance 1K). One was has been active for 28 months and the other one for 15months. I hardly used them, because I was paying them off.  I tried to use one CC the other day it wouldn't go through..Hmmm. So, I tried to use the other one.  I thought it was clitch on the stores end, since I made a recent payment.  I tried it today and it DECLINE.:smileymad:.  I got on the phone with Customer Service and they had closed both of my accounts as of July 14. 

Now get this, I just recently made a payment on both cards 10 days prior to the due dates.  When I went on line, there were NO messages to indicate this. Customer Service rep said that they sent the letter out on July 14 and I should be getting it within 7-10 days.  I was furious. They said that I would have to keep continuing to pay for the minumum bal until the DEBT is collected.  I asked them why did they close both of my accounts, when I've always paid on time, NEVER delinquent and paid more than the minimum?  They said, that they got something from Experian, and based on the findings with Experian, they made the decision. When I get the info from Experian, it will explain why the decision was made.  I feel CHASE made the decision...it's like they are trying to put the blame on EX, not them.  It's pretty amazing that they report to all 3 Bureaus and they are going to choose what I have in Experian.  I felt betrayed because I worked VERY hard to maintain those CC.

 

It's pretty amazing they close my accounts when I'm paying more and my Credit Score is higher about when I qualified via WAMU.

That's not a problem for me to pay the DEBT, which I will and I should; however, the problem is the way they did and them stating  it is based off EXPERIAN. ( Dern FAKO score).

I just pulled my a EXPERIAN (695-FAIR in EX opinion) report and I didn't see anything out of the norm. There were some things that EQ (680), TU (671) didn't have but the data was back in 05, 04.

 

Questions.

1) Has anyone experience dealing with CHASE? 

2) Will this make my CC go down if I continue to pay them off ASAP? How will it affect my Credit?

3) I definitely, need another CC, but I'm going to wait to completely pay them off and apply for another card....is this advised?

 4) What are you alls Opinions as to why they closed my accounts?

5) Do you think they are making an excuse because I didn't use them and paying more than the min each month?

6) Because they are going to close both accounts and report it to the CB, how will it impact my Credit Score?

 

Thanks, :smileysad:

Message Edited by frugal on 07-21-2009 04:02 PM
Message Edited by frugal on 07-21-2009 04:04 PM
Message Edited by frugal on 07-21-2009 04:06 PM
Valued Contributor
Scamp
Posts: 2,791
Registered: ‎03-18-2007
0

Re: Chase just CLOSED both of my cards

You have plenty of company:

 

Chase Closed My Account

 

Chase Closed My Former WaMu Account...

 

Question for those with cancelled WaMu/Chase...

_____________________________________________________________________________
It's never too late to become the person you might have been. ~George Eliot

02/12/09 EX: 701 / 02/08/10 EQ: 719 / 02/08/10 TU: 723

Backdoor Numbers, Credit Scoring 101, Understanding Your FICO Score PDF
Valued Contributor
Imhotrodcrazy
Posts: 1,554
Registered: ‎03-11-2009
0

Re: Chase just CLOSED both of my cards

I beat Chase to the punch.  Due to their rudeness of late, I moved my checking and savings to another institution.
FICOS
TU 805 12/12/14
EX 806 10/26/14
EQ 829 12/13/14
NASA 30K / / Amex 20k / / Chase Freedom 10.6k / / / / / SD'd US Bank Cash+ 20k, LOC 15k
Goal - At my age, just staying alive
Established Contributor
Watchmann
Posts: 989
Registered: ‎05-14-2008
0

Re: Chase just CLOSED both of my cards

Paying on time and paying more than the minimum doesn't guarantee that a CC wants to keep you.  Chase inherited a lot of baggage in the merger and not all accounts will pass muster.  Many will and are being shed along the way.  It was Chase's decision with the help of the credit bureaus information.  That's just the way it is in todays market.  Credit lines are being cancelled, liquidated and cut in line with each issuers business plan.  There isn't much you can do about it.  Keep paying down your debt and wait for better times.  Things will never go back to the willy nilly credit issuance of years past, but once things settle down smaller credit lines will be available to more people.  Just make sure you are in good shape, debt wise, when that day comes.
Established Contributor
JoeBJay20
Posts: 795
Registered: ‎04-13-2009
0

Re: Chase just CLOSED both of my cards

1. Scamp answered, but Chase is in the process of closing or CLD 3 million former WaMu accounts. 

 

2. Ignore their advice about paying the minimum, you want to pay those balances off as quickly as possible.  Your score will be affected because your utilization has increased.  You've lost $6500 of available credit but your balances are unchanged.  This is why you want to pay it off as fast as possible.

 

3. I agree, you should get your utilization under control before seeking new credit.

 

4. As I said, Chase is closing 3 million former WaMu accounts.  Unfortunately your account was one of the many chosen, they may give you reasons such as high utilization or not used enough, but the truth is that they were just intent on closing your account along with millions of others.

 

5. Same as 4, they were going to close your account regardless, and are going to find reasons to justify it.

 

6. The closing of the accounts in themselves has no effect on your credit score, you will keep the positive history and age of accounts.  Where it hurts is in terms of utilization, as explained before, your available credit is decreased but your balances are the same.  

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Chase just CLOSED both of my cards


Watchmann wrote:
Paying on time and paying more than the minimum doesn't guarantee that a CC wants to keep you.  Chase inherited a lot of baggage in the merger and not all accounts will pass muster.  Many will and are being shed along the way.  It was Chase's decision with the help of the credit bureaus information.  That's just the way it is in todays market.  Credit lines are being cancelled, liquidated and cut in line with each issuers business plan.  There isn't much you can do about it.  Keep paying down your debt and wait for better times.  Things will never go back to the willy nilly credit issuance of years past, but once things settle down smaller credit lines will be available to more people.  Just make sure you are in good shape, debt wise, when that day comes.

There have been contractions before and somehow the CCC's always manage to find a way to grow themselves.

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Chase just CLOSED both of my cards

OP -

 

What is your UTIL on the Chase accounts and on your accounts as a whole?

Established Contributor
Watchmann
Posts: 989
Registered: ‎05-14-2008
0

Re: Chase just CLOSED both of my cards


creditwherecreditisdue wrote:

Watchmann wrote:
Paying on time and paying more than the minimum doesn't guarantee that a CC wants to keep you.  Chase inherited a lot of baggage in the merger and not all accounts will pass muster.  Many will and are being shed along the way.  It was Chase's decision with the help of the credit bureaus information.  That's just the way it is in todays market.  Credit lines are being cancelled, liquidated and cut in line with each issuers business plan.  There isn't much you can do about it.  Keep paying down your debt and wait for better times.  Things will never go back to the willy nilly credit issuance of years past, but once things settle down smaller credit lines will be available to more people.  Just make sure you are in good shape, debt wise, when that day comes.

There have been contractions before and somehow the CCC's always manage to find a way to grow themselves.


 

We shall have to wait and see what the future brings.  Default rates are hitting 10% and may get worse.  This is an all time high and the CCC's won't easily forget that in the future when people come a 'knockin looking for new credit.  Stellar credit files will get good rates and lines, others not so good.  Massive amounts of credit lines are being destroyed now, and probably won't be coming back, ever.  Just my opinion.
Established Contributor
pattycake
Posts: 760
Registered: ‎04-30-2007
0

Re: Chase just CLOSED both of my cards

Watchmann, I think you've hit the nail right on the head.  
pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Chase just CLOSED both of my cards

I am sure the old 80/20 rule will apply. In this case the bottom 20% will take 80% of the hammering. It is pretty easy for folks to forget that a 720 FICO score is the 50th percentile (if they ever realized it to begin with). I think folks with impaired credit are going to find the sledding pretty tough for the next few years.

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