Help - Chase is cancelling my card for inactivity

[Anonymous]

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@lhcole77 wrote:

Easy there partner. I've read the thread. And I speak from personal experience that closed accounts  can in fact fall off reports before 10 years. It has happened to me on several occasions. 

Age of open accounts means something to people on here. If it didn't then there would not have been such mourning and Lamentations in the streets when AMEX did away away with back dating.

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It only means something to the people here because it means something (not a big something, like 30% util or lates) to FICO.  

To the OP, it is important to your FICO, but you get diminishing returns.  In 10 years, when it no longer factors into your score, every other acct (even ones you don't have yet) is 10 years older than they are today, and your AAoA is also 10 years older (less any new accts).  And trust me, I get the emotional attachment.  Just make sure you realise that it's purely emotional.

As for charging it up, you really don't see anything major affecting scores until individual util goes over 50%, and even then, it's not horrible.  And util has no memory, so even if you charge 90%, even if the card is closed and CL is zeroed out, once it is paid off (or goes below a benchmark util %), the score recovers with the next update.

[Anonymous]

BrutalBodyShots, I have 2 months left to use the card.  Do you mean to PIF or keep < 9% when the statement closes by paying before the cycle close date instead of the payment due date?  I can do that, I just don't normally do it.

So banks issue a credit limit, but then only want to see up to 9% used when the statement closes? Or 20%, or 30%, or whatever.  I've had many months when I have had reasons to charge over $12.5k (50%) on a $25k limit card without thinking that I need to spread across different cards to preserve individual utilization, especially when I PIF before the due date.

After seeing seeing everyone's lists of cards and limits, I think I need to open more cards.

[Superpet39]

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@Anonymous wrote:

BrutalBodyShots, I have 2 months left to use the card. 

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How about give ALL your other cards a break for the next 45 days and ONLY USE THE SLATE, then if/when you call back the EO number (assuming you already called the number when it was given to you on here yesterday) and they decide that wasn't sufficient enough to overturn their decision- you can say " lesson learned" and just move on (move on meaning apply for a different chase product, THEN before the account closest move the CL from your slate to your new chase product-thus giving you an even higher CL than what your initial CL was with the new card)

[Anonymous]

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@Anonymous wrote:

BrutalBodyShots, I have 2 months left to use the card.  Do you mean to PIF or keep < 9% when the statement closes by paying before the cycle close date instead of the payment due date?  I can do that, I just don't normally do it.

So banks issue a credit limit, but then only want to see up to 9% used when the statement closes? Or 20%, or 30%, or whatever.  I've had many months when I have had reasons to charge over $12.5k (50%) on a $25k limit card without thinking that I need to spread across different cards to preserve individual utilization, especially when I PIF before the due date.

After seeing seeing everyone's lists of cards and limits, I think I need to open more cards.

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There are a number of factors.  9% overall gives you the best score (or at least anything lower has very little effect...diminishing returns and all that).  The banks don't really care (or at least don't always, some banks care mroe than others) how much you use, but util affects credit score....but any drop in credit score is ONLY until the next update of any account with high util.  The lower score is the real issue (and then only if you looking for new credit RIGHT THEN or a creditor looks at your report RIGHT THEN and decides to take AA), and those effects are only very short-term.

[Anonymous]

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@Anonymous wrote:

There are a number of factors.  9% overall gives you the best score (or at least anything lower has very little effect...diminishing returns and all that).  The banks don't really care (or at least don't always, some banks care mroe than others) how much you use, but util affects credit score....but any drop in credit score is ONLY until the next update of any account with high util.  The lower score is the real issue (and then only if you looking for new credit RIGHT THEN or a creditor looks at your report RIGHT THEN and decides to take AA), and those effects are only very short-term.

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What is AA?

I haven't called EO yet because I wanted to have some significant activity to show them I am using the card.  I don't know what they see on my account, but when I received the 0% APR offer that reminded me to use the card (whether I use the offer or not), I spent/wasted my time setting up the activity alerts, etc., on the card and was just waiting for the invoices I planned to pay on the card to arrive.  I did this a few weeks before the date of their cancellation letter.

Chase already offered to transfer the CL to another card if I want.  I don't need the additional CL and I don't know why they think I want to apply for a new Slate card when they are only annoying me by telling me I can't just keep the one I already have.  If I have to reset the account start date to 2016, I may as well shop other banks' credit cards.  I can just use my other Chase cards when the reward is better than another card. 

[myjourney]

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@NRB525 wrote:

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@Anonymous wrote:

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@Turbobuick wrote:

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@myjourney wrote:

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@Dalmus wrote:
For the record, if you have a balance on a card that is closed, you simply pay it off according to the terms in effect when you made the purchase.

In this case, you have 0% APR on purchases for a year... anything you buy before the card is closed will be at 0%. You can continue to pay down that balance monthly to take advantage of the offer after the card is closed until the balance is paid off.

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True yes you can keep the same terms on a closed card 

However its always best to pay it off ASAP if you can because a closed card showing a balance will cause a significant drop in scores 

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While the card can't be used for new purchases, it isn't technically a closed account until the debt is paid. There isn't any negative feedback.

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Right, but often when an issuer closes an account, they set the C/L to 0.  Depending on how much overall credit you have, that can mess with your ratios.  And you'll still have one card with a C/L of 0 and a balance of, say, $7,500, which makes the ratio on that card = infinity, and that looks really bad.

Chris.

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Not in my experience. A score drop due to large balances, yes, but I still have two Citi accounts with balances that I am paying down, and I'm at 760-777 across the bureaus. And how much is a "significant score drop" please It's no different than carrying a low APR balance on an open account, but that's a different discussion.

Not in my experience. Chase closed a couple of accounts on me over the years, always left the same CL sitting there. Same with Citi. Now, if OP transfers the limit to another active card, then the closed card will reflect that lower limt. But not a zero CL.

OP, You can use the card for those charges before the expiration, they will go on the 0% APR offer, and then you can pay that off over how ever long it takes. The 0% will last until the 12 months is up, then the APR will go back to the current terms APR. New charges could not be added after expiration, but existing balances, yeah, those continue to get paid only according to terms, at minimum payment for x number of years if you are so inclined.

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See all green highlighted sections above 

Lets address this as was stated which I responded to....

The comment was on a closed account so lets go there please (yes significant)....

The account being open or closed with the lender here doesn't matter...as long as you pay as agreed 

But seems you're not aware that most lenders will yes set the available credit balance to $0

And what you also failed to address is 90.9% of the time when the lender who will still report monthly to the CB's because a balance is owed ...with that $0 available limit 

will also marked the account as closed by lender with a balance showing .....This is and always has been a Fico no no 

That will most definitely result in  a significant scoring ding which is in  essence looks just like a collection account with a unpaid balance (baddie) 

on a closed account....Really 

So no this is not or will this show like a $0 if its reported as a closed account by lender with a balance to the CB's.....please  

Try to give info based on the facts of OP not what always happened to you

That's not fair or relevant to 99.9% of the general populace and honestly credit changes each and everyday so what happened 3 years ago and seen in your case may have changed 2-3 times since ....or at the very least give more current info say 6 months to a year ...geez Lol

Unless these accounts that you always speak of from years ago and you're still paying them off

Then I would understand but you speak of carrying a lot of balance and using BT's regularly so are these all the results from years ago and if still open with balances how do they show on your CR's now a days?

OP if I were you I would move on and cut your losses 

1) you don't need the card (not used)

2) it will remain on your CR's for up to 10 years and by that time something else will be 10 years old 

In reading your post you already have other cards about that age 

3) don't go putting payments on a card that obviously no longer fits your lifestyle or financial needs 

Its truly not worth all the aggravation IMHO just to save history or the stress level you're at right now 

For what?

[thummel]

Honestly I can't believe this thread is going on the way it is. The OP didn't use a card for ten years and Chase wants to close it. Pretty nice of them to even give you a heads up in my opinion. Just use the card and pay it before the statement cuts. If they keep it open that's great. If they close if then lesson learned. Not sure why it's going into balances and scoring etc.. Pretty cut and dry.

[Anonymous]

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@Anonymous wrote:

BrutalBodyShots, I have 2 months left to use the card.  Do you mean to PIF or keep < 9% when the statement closes by paying before the cycle close date instead of the payment due date?  I can do that, I just don't normally do it.

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Make sure both are below 9%.  If you can PIF, do it.  No harm there.  The 0% or 9% usage reported IMO is far less important than simply showing them that you're committed again after an incredibly long time of not using the card of actually using it again... even if it's just "for show" and trying to get them to keep the card open.  Charge up $1k-$4k, whatever you are comfortable with just pay it down to $400 or less by the due date and reporting date.  Simple enough.  You've only got 2 months, so only 2 cycles of this behavior to see what happens.  If it doesn't work, they close the card which is what would happen anyway.  If they like your newfound use for the card, they'll keep it open... then just going forward you want to make sure you through one insignificant purchase on it every month or two to keep it alive and not chancing them attempting to cut the cord again.

[Anonymous]

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@Anonymous wrote:

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It is a Chase Slate card.  I didn't know I could change products on the same account.  (Years ago, Chase sent me the wrong product when I applied and told me they had to reissue a whole new account.)  I would have just changed it to something that works better for me.  The cards I use get rewards.

A couple of weeks ago I changed my Chase Slate that's been open since 2000 to a Chase Freedom Unlimited (the new card even says Member since 2000). I called up the normal customer service line on the back of the card and asked for the product change. It happened right away. I logged into my Chase account after I hung up the phone and noticed that my Slate account was now the CFU account. I believe my card was originally a WaMu Card, and before that some other bank that WaMu bought, I think it was Providian. So yes, it can definitly be done. This might also be ammunition in your plight to keep the account open, you can tell them that you'll use this card now because of the points. You might also want to explain to the EO that you just leard about the ability to product change. 

[taxi818]

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@thummel wrote:
Honestly I can't believe this thread is going on the way it is. The OP didn't use a card for ten years and Chase wants to close it. Pretty nice of them to even give you a heads up in my opinion. Just use the card and pay it before the statement cuts. If they keep it open that's great. If they close if then lesson learned. Not sure why it's going into balances and scoring etc.. Pretty cut and dry.

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+1