Chase just closed an account I have a balance on

[ChesterPDexter]

I just read this in another thread:  " 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."

Is the above quote true?  I owe about $1,800 to a Chase VISA with a $2,000 CL, but I just received a letter stating that because the card was up for renewal, they reviewed my credit report and noticed that I owe balances on a lot of bankcards, and the total amount owed is close to the total limits, so they will not renew my card.

My main concerns are 1. I assumed that a big balance without any credit limit whatsoever to match it would adversely affect my overall credit utilization percentage, (if the above quote is true, I will feel a lot better) and 2. I assume that it also looks bad to be marked "account closed by credit grantor" rather than "by consumer."

If I sound restrained here, believe me, I was nearly mentally ill earlier today.  I pay diligently and promptly on many accounts and while I don't care about keeping this particular card, I'm concerned about the two points above.  It seems like a kick in the gut when I have an absolutely perfect record with all cards listed in my CR including this one.  The saying "Chase is the devil" that appears on some other message boards did not come from nowhere.

[MarineVietVet]

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@ChesterPDexter wrote:

I just read this in another thread:  " 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." This is correct. You can read that in this thread: Closing Credit Cards

Is the above quote true?  I owe about $1,800 to a Chase VISA with a $2,000 CL, but I just received a letter stating that because the card was up for renewal, they reviewed my credit report and noticed that I owe balances on a lot of bankcards, and the total amount owed is close to the total limits, so they will not renew my card.

My main concerns are 1. I assumed that a big balance without any credit limit whatsoever to match it would adversely affect my overall credit utilization percentage, (if the above quote is true, I will feel a lot better) and 2. I assume that it also looks bad to be marked "account closed by credit grantor" rather than "by consumer." It doesn't matter at all whether the account is closed by the consuner or the creditor.

If I sound restrained here, believe me, I was nearly mentally ill earlier today.  I pay diligently and promptly on many accounts and while I don't care about keeping this particular card, I'm concerned about the two points above.  It seems like a kick in the gut when I have an absolutely perfect record with all cards listed in my CR including this one.  The saying "Chase is the devil" that appears on some other message boards did not come from nowhere.

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[ChesterPDexter]

Thank you, Marine Vietvet.  You've made me feel a lot better.

[Jstic]

Chase jerked me around with interest rates and lowering my credit limit to within $200 of my utilization at the time. I paid off the card and haven't used it since. Don't take this stuff personally. There are many, many of us who have paid on time for many years and have been treated like sh** by these CC banks. The bottom line is that it is a business and they are trying to minimize risk and make money. Not a great business model in my mind as customers who have a long history of paying on time are the kind that I would want to keep, not alienate. In their opinion, people like us may not be a good risk, in my opinion, using their credit card with lower credit line and higher interest rate is DEFINITELY not a good risk. Chase loses, I win by using other cards with a  lower rate and higher line of credit.

[ChesterPDexter]

Thanks, Jstic.  I knew they were terrible to many good customers (I've heard dozens and dozens of stories, many from people with no credit problems or issues whatsoever who suddenly had rates hiked from 9% to 29% and similar senseless actions) but I wasn't really prepared for it to happen to me.  I thought I was so sophisticated about the workings of the banking and credit industries that I wouldn't react as I did when I opened that letter.

I guess I'd better toughen up a little and keep moving forward.  A better day will be ahead for me.  I'm earning it, slowly but surely.

[Uborrow-Upay]

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@Jstic wrote:

Chase jerked me around with interest rates and lowering my credit limit to within $200 of my utilization at the time. I paid off the card and haven't used it since. Don't take this stuff personally. There are many, many of us who have paid on time for many years and have been treated like sh** by these CC banks. The bottom line is that it is a business and they are trying to minimize risk and make money. Not a great business model in my mind as customers who have a long history of paying on time are the kind that I would want to keep, not alienate. In their opinion, people like us may not be a good risk, in my opinion, using their credit card with lower credit line and higher interest rate is DEFINITELY not a good risk. Chase loses, I win by using other cards with a  lower rate and higher line of credit.

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+1

Well said, Jstic!

@P.S. @ChesterPDexter - %$#@&$?!  Chase!

If no one borrows their money, they don't make a nickel.  I hate Chase, and I still have 3 accounts with them. 

My dog likes the burgers I buy for him once in a while with a Chase card, and I get paper statements in the mail for that one account, just to mess with 'em.  

**bleep** Chase!  You don't need them...they need you! 

Feel better now?     You're not alone here.  

[ChesterPDexter]

Thanks, UBUP.  Yes, I feel better now.  I needed some time to get some perspective.  I have two cards with them and I really don't need two (don't need either of them, really, but owe on both.)

As I mentioned in another thread, my husband just paid off ALL of his cards and I'm thrilled for him.  In the last few days he's been able to

1. Get HSBC fake-Discover to first give him a $20 credit because he was so unhappy about the annual fee (in lieu of refunding his annual fee) and a few days later when he had second thoughts and decided he'd like to cancel the card after all due to their dishonesty, he got them to actually refund his annual fee... that's right, they gave him $20 and $39 so he made a profit of $20, (he's going to wait till the check he requested from them has been cashed and cleared and then cancel the card anyway) and

2. He also complained so bitterly to GEMB about the Paypal MC final payment he mailed to them (long story as to why he could not pay online) that today they credited the payment as received on Sunday June 12, three days after we mailed it, and adjusted the $32 interest they had assessed on the June 14th statement.  We were ready to accept defeat, thinking it was useless to fight GEMB, and just send in the final $32 interest to truly zero the account out, but they adjusted it and subtracted that interest. 

He's on a roll, obviously, so I'm getting vicarious pleasure and I'll just keep plugging away at my credit.  It's great to see him in the driver's seat when negotiating with these companies now that are absolutely begging him and groveling to try to keep him.  Oh yes, I forgot to add that this morning he called to cancel his HSBC American Dreamcard (it has no annual fee) and

4. After about 4 or 5 rounds of them groveling and him saying no, they asked if he would just take $40 to keep his account open.  That's right, a statement credit of $40, for doing nothing other than agreeing to keep the account open a while longer.

Have you ever heard of such a thing? ! ? ! ? 

[Uborrow-Upay]

I absolutely love it, ChesterPDexter! 

Moral to the story:  Don't take crap from anyone (but don't give it, either...and you'll always be justified for whatever you do).

IMO only.

BTW, no animals were harmed in the making of this post...

[wollepopolle]

I am not so sure about Chase losing when the consumer goes elsewhere. In my experience, the big bank wins most of the time. We're dependent on their willlingness to extend credit to us. Sure, all banks needs us as their customers. But unless we are all united and act in solidarity, we don't have the power to turn around a decision like this.

I'd honestly see Chase's decision as a wake-up call. If indeed you have most of your bank cards maxed out, then ACT NOW! Don't let it become any worse. Chase wasn't exactly nice by closing your accounts. They care about themselves. They see your insolvency coming. However, you should make it a point to pay down your balances. Once you've done this, then you'll be in much better shape!

I've read these reports about other banks closing customer accounts for that reason. Any big anonymous bank might do the same to a customer with maxed out credit. Maybe your local credit union won't but Chase will, and so will a lot of other banks.

[Uborrow-Upay]

wollepopolle,  your insight is amazing!

Your reply beats mine by a mile and a half. 

Mine was emotional... yours analytical.

You're right!  And thank you!!

(But, I still hate Chase!)