09-04-2012 05:27 PM
Sorry, I just figured it was new since you said the Chase Ink Cash was just opened. I really do not know what they could be seeing, unless information on your reports is inaccurate.
Usually, charging a lot to a new credit card is kind of risky. Not every lender will become alarmed, but some will, especially on business cards. Charge cards are no different than credit cards; in the sense that you can still go delinquent on them
09-04-2012 05:43 PM
Yeah but the crzy thing is no payment was due on any card.........
Slate owed 3k.... statements cutes on the 2nd of every month ( I PIF on the 31st) in the last 10 months I have had the card i pay off the card off on the 31st or 1st every time....
Ink cash owed 11,999.17 ( statement cuts on the 10th ) so technically payment would be due Oct. 4, I paid off today cus weekend sales were good....
ink bold owed 15,050.12 ( first statment did not even cut yet) if it did payment would be due on the sept. 28th, i paid it off cus again weekend was good as money was there....
I dont have any idea what they were thinking.....Why did they approve me for these amounts if they thought I could not handle them....
09-04-2012 05:53 PM
Sorry about that event you had with Chase, that was really unfortunate and really ridiculous on their part.
I had an experience with VISA early in my credit experience as well. A while back I had a VISA with a 2K credit limit. I made a 1800 dollar purchase. On the 1st month I paid only 200 dollars, so the balance plus the interest for the next month came out to like 1677. Then I PIF, and also found out the next month they closed my account. They said I became really risky having such a high debt to credit limit. I contested at first saying what is the credit limit good for and how I never paid late or went over the limit, but at the end of day I took it as a learning experience and it strengthen my resolve and strategy in this credit game.
Now I ALWAYS PIF before my statement even closes. I carry a 0 balance at all times and it has worked incredibly well. I get credit limit increases all the time and my credit score is rising slowly but steadily. No matter what I charge on credit/charge card I make sure it's PIF I don't touch it for anything, 1 week out from the closing date of each month.
09-04-2012 05:56 PM
I need help guys, i think I will have a heart attack !!!!!
Everything was going fine, smooth and great...
nov 2011 chase slate 3K.... PIF and so far charged over 30,000 on it alone. Just paid off on Friday aug 31 full 3,000.
april 2012 chase ink 5k(cli to 12k in july 2012) limit.... PIF every month and charged over 35k on it and paid it off in full today (11999.17)
july 2012 chase bold approved 15k limit.......... charged upto 15050.28 and the first statment did not even cut yet due date is sept 28th.. Paid in full today (15050.28)
So basically : Aug 31st Friday paid 3k on personal and today Sept 4th tuesday paid 27,049.45. Paid all my accounts off in full as I do every month towards the begining of the month... Actually there was about 20,000 sitting in the bank all of aug and I never used it. Use the sales from the weekend ( I own a small business and am employed ) to pay it off in full today. Income over 120K I am 23 years old.
So, to you, this looks fine. But to them, this is high-risk. It looks like you hit your CL on Slate, went over your CL w/Bold and were within $1 of your Ink CL. Seriously, I would never do that. If you know you're going to be needing to use the credit, then you need to plan beforehand. Call and let them know and possibly get CLI, if needed. Or apply (well in advance of needing the money) for another CC w/a different bank. (You really need to spread out your credit.)
Even if you got a personal CC to cover the expenses, and then loaned the money from yourself to the company, or put it into capital on the balance sheet (depending on if you're a corp, sole proprietor, etc.) I'm an accountant, so I know how to do this stuff w/clients. Sure, it's better to have it all under the business. But you're not leaving yourself any leeway here. If your balances are so close to your CL, you need to figure something else out.
If you can pay 2x a month, I suppose that would work. That way, you'd only be 50% of your CL at any one time.
Also, something else to remember is that sometimes CCs will hold funds for payments. Even Navy Fed w/hold payments under certain circumstances, including payments over $5k. You're paying huge amounts here. And even though you're banking w/Chase, it's still a lot of money you're moving around.
I think the only reason they might be concerned about inq is because of the balances you had. Seeking new credit on top of maxing out CCs = disaster to them. And keep in mind that as of 8/28 (when they said that they reviewed your acct/CR), you had not paid any of these balances.
Now that you've paid, if you're able to talk with your personal banker, you might be able to get them reinstated. I'm not quite sure how Chase works in that way. But in any case, I would look at moving your banking relationship if I were you.
09-04-2012 06:31 PM
In July when i called them for a CLI on my Ink cash I told them raise it to 25k... They countered at 12k...
I then decided hey lets get a bold it will work better for me, since i PIF every month anyway... I told that rep give me 30-35k charging capacity... I told why i charge and what i do, he said you know what I will give you 15k call us in oct and we will raise it to 35 no problem....
I told everyone listen busines is thriving we are successful, yes is this terrible econocomy.... LOL ( i serioously charge over 30k a month) this month i decided to charge it all on my business cards rather than my personal...
09-04-2012 06:32 PM
You are using credit cards for the wrong purpose!!!!
Credit cards should NEVER be used to finance inventory. Chase probably found out what you were doing and cancelled the cards for that reason. You need a business line of credit.
Why, you ask?
Think about it from the banks perspective. Credit cards are unsecured lines of credit. If your business should default there really isn't anyway for them to recoup the lost money. With a business line of credit they will have first rights to all your inventory, receivables and first born child. (In writing!) You formed an LLC (Limited Liability Corporation) to LIMIT YOUR LIABILITIES in case the company folded. Are the cards in your name? If that's the case just how would the bank attach the inventory that is now sitting inside your LLC? A very messy area of law.
Secondly....When you borrow money from your line of credit you start paying interest from day one. Just how much interest were you paying Chase for using $50K of their money? If you averaged your monthly balance it would probably be around 25K on any given day. (Start at $0 on first day of the month $50K on last day.) So you were asking the bank to lend you $25K for zero interest and at some points in the month it would be a $50K balance. Would you lend $50K to someone every month without them paying you a penny? (If you answered yes to that question, I'll be your first customer!)
Businesses do not finance growth with credit cards. Even Apple computer had to sell stock at some point to raise capital for expansion.
If you tell your story to any banker they will be laughing behind your back if not to your face.
You are not a consumer that that is spending their own money and not really turning a profit on what they purchase. You are a business that is using the banks money to turn a profit. They want their cut.
09-04-2012 07:08 PM
Im sorry to say I am not as stupid as I look.....
Banks make money on credit cards in 2 ways:
From those that make min payments and pay interest
From those that PIF and they get the processing fees ?? - trust me for my business alone this month we paid over 1700 in merchant fees ( thats alot)
so is it my fault for paying off my credit and using it to help my business, I care more about my credit that anyone can imagine I check my credit report every single day. I PIF all my cards.... I am admit they are giving me an unsecured credit of 30K but there are so many things that cover that, the almost 30k that was in the bank before the payments were made, my income of 120k, my sales and business resources, we have almost a million dollars of inventory on stock. I put all my money in chase....
09-04-2012 07:15 PM
Why not just open a business line of credit?
09-04-2012 07:20 PM
They wont do that ??? This company is new and has not been open for 2 years yet. For products like that they need 2 years busines tax returns...
09-04-2012 07:30 PM
They won't give you a business line of credit because you are high risk.
You keep talking about your company's sales but sales and profits are two different things.
I'm going to quit beating you down now because you are between a rock and a hard place and have come to this forum for a solution. I'll try and give you a hand with that if I can. Just don't ever mention to me again how you are 23 years old and make 123K a year. Deal?