09-04-2012 04:28 PM
Oddly, in the world of credit self employed people are considered high risk. Regular employees and even retired people are considered safer. Also, you may be a victim of banking analytics. If Chase has had an increase in losses with people with similar patterns to you they could well take AA. It's mostly computer algorithm driven but you may be able to get an override. Best bet is talk to your banker in person.
Check out FICO's banking analytics blog at www.fico.com
09-04-2012 04:45 PM
09-04-2012 04:54 PM
yeah but i am employed through my brothers company.... Long store ( Ok my dad went into business 14 years ago) I am employee of my brothers company.... I get w2 and paystub and everything... 6 months ago my brother and i decided to expand we got a good location and we opened an LLC and he an I are the owners.... so technically im on a payroll and receive a pay check just like evey other tom dick and harry...
09-04-2012 04:55 PM
Could the closing of the accounts be because you just made a payment of $11999.17 on a card with a CL of $12,000 (coming to within $1 of the CL) and a payment of $15050.28 on a card with a CL of $15,000 (which is $50 over your CL)? I don't know if it is possible for you to only let the charges get up to $4000-$5000 then make a payment equal to those charges and just make multiple payments so that the balances don't get up so high. If this is a possibility, maybe talk to your banker tomorrow and tell him/her that that is the way you can handle those cards in the future if they can be re-opened. Even though you have $10,000 in your account, your total CL with them between 3 cards is $28,000, so I can see why them may be nervous. Factor in the fact that it is a new business and the fact that you are young and there are two more reasons for them to be nervous.
It's tough owning your own business, especially when it comes to banking and credit cards. I opened up my own business just over a year ago. I was able to open up business banking accounts with BofA, but I had personal accounts with them for years. I also had set up my merchant account with them, but I underestimated my sales and they closed my account because I was at double what I estimated and they were afraid of chargebacks with me being a new business. I now have my merchant account elsewhere but I was sweating it for the almost two weeks it took me to switch to the new company.
09-04-2012 04:59 PM
Sorry to hear
I agree with the others about talking to the banker you know in the branch in person, hopefully they can help!!
09-04-2012 05:09 PM
I think you just charged too much, too soon. Add that with the recent inquiries and that you have a business; a recipe for disaster. New busines are risky because a lot of them fail. Even though you paid it all off, they probably still see that as risky.
The inquiries being for business really may not matter, they are still inquiries.
I really get why you are upset though. I love Chase as well and have three cards with them. The Chase Ink card is great and they do not mind giving increases. If everything is okay, you should have them reinstated. I believe the risk department is different than credit analysts. So the credit analysts saw the inquiries when they approved the card, but the risk department did not.
Take a deep breath though, everyhing looks like it will be fine.
09-04-2012 05:10 PM
Very few are an employee and self employed at a different biz. Perhaps the funds you go through don't come close enough to the W2. Banking analytics are very oriented towards statistically large groups and have problems with those of us that are anomolies. Just yesterday I was talking to a friend that won the CA lottery (Over 20M) back in the 90's. She has done a really good job of not blowing her money and has diversified into real estate, stocks and bonds. For tax reasons she has loans on about 40% of her properties but has to go though a specialty mortgage broker that is used to working with people without W2s. I cashed out of my biz and retired 10 years ago and, since I'm not quite 65, it's always interesting trying to get credit. Especially because my CRs don't have any employment history nor any LOCs until just over 3 years ago. In my case I got a couple high limit secured CCs and that proved a great kickstart.
09-04-2012 05:16 PM
I never knew charging too much would be a problem.. especially on a charge card....
I could have easily keep making multipe payments every month, i just never thought there is a need to. They can see themselves that there was over 25k in the bank the whole month and I just paid it off as the due dates were approaching....
I own a seasonal business that is open 12 months a year.. Our season is starting and I am chargining alot due to the fact we are buying alot of inventory..... I deal with so many high end and reputable companies.... For gods sake we sell Micheal Khors jackets..... my current inventory on hand is worth more than a million dollars... all my vendors give me net 90 net 120 terms and then I pay them in multple payments every month with my credit cards.....
this is why I charge so much.....
We charge between 30-45 right now depending on the month... I had a cash for 12k and a bold for 15k... thats 27k... I need to make up the difference between my other cards....
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