NEW AND FINAL UPDATE** Chase closed out all of my cards with them..LOL!!

[kdm31091]

Them doing something that's within their right isn't really BS, at least not in the sense of "it has no basis". To me, BS means something that has no basis or makes no sense. Someone opening a ton of accounts and being extended a ton of credit does increase the risk factor regardless of income.

Nobody, even if you make $120k+, needs 5 new accounts with $20k lines in under 6 months. That's going to scare any lender. It's a lot of money, for anybody. Again, this is nothing specific about the OP because I didn't see how many accounts they have or opened, just a general statement

What I will agree is total BS is that if they were going to shut you down anyway, they should have just declined your more recent apps. Same thing  I said with popamode's Citi incident.

[Anonymous]

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@Ysettle4 wrote:

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@kdm31091 wrote:

Unfortunately, that's not really BS. As horrible as it is, it is completely within every issuers right to shut down accounts with or without notice, for whatever reason they want.

Does that mean I agree with it? No. But it's also something that's fully disclosed in almost all T&Cs. If you open a ton of accounts with any lender, you have to be prepared  that they may see it as a red flag and can close your accounts. I'm not trying to lecture anyone, and I'm not defending Chase's reaction here either, but it doesn't make it BS just because they closed your accounts. Unfortunately, we could all wake up tomorrow and all of our accounts could be closed -- the creditors always retain the right to do this, and there's really nothing we can do other than try and convince them to reopen the accounts.

Best advice I think for anyone to glean from this and the string of other recent closures is to chill with apps and churning for bonuses. They're clearly catching onto it, whether your intent is bad or not, they obviously don't like it and reacting to quite a few people. This forum is only a small percentage of the population, yes, but that also means it's likely there's people who are NOT on here who it's happening to. I think we all need to again realize that credit is not a game or something to be milked.

I am not, OP, saying that you milked, churned, or anything -- just making a general point. Good luck

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The BS is mainly at the fact of extending me that much credit to only take it away - not so much their ability to close out at will - this is with any lender so nothing new there. It's clear that the one dept that extended the credit has different criteria for the dept that does the periodic reviews

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The fact that it's such a out of nowhere knee jerk reaction IS indeed BS.

[Anonymous]

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@kdm31091 wrote:

Nobody, even if you make $120k+, needs 5 new accounts with $20k lines in under 6 months. That's going to scare any lender. It's a lot of money, for anybody. Again, this is nothing specific about the OP because I didn't see how many accounts they have or opened, just a general statement

What I will agree is total BS is that if they were going to shut you down anyway, they should have just declined your more recent apps. Same thing  I said with popamode's Citi incident.

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Generalization.

[longtimelurker]

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@Anonymous wrote:

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@kdm31091 wrote:

Unfortunately, that's not really BS. As horrible as it is, it is completely within every issuers right to shut down accounts with or without notice, for whatever reason they want.

Does that mean I agree with it? No. But it's also something that's fully disclosed in almost all T&Cs. If you open a ton of accounts with any lender, you have to be prepared  that they may see it as a red flag and can close your accounts. I'm not trying to lecture anyone, and I'm not defending Chase's reaction here either, but it doesn't make it BS just because they closed your accounts. Unfortunately, we could all wake up tomorrow and all of our accounts could be closed -- the creditors always retain the right to do this, and there's really nothing we can do other than try and convince them to reopen the accounts.

Best advice I think for anyone to glean from this and the string of other recent closures is to chill with apps and churning for bonuses. They're clearly catching onto it, whether your intent is bad or not, they obviously don't like it and reacting to quite a few people. This forum is only a small percentage of the population, yes, but that also means it's likely there's people who are NOT on here who it's happening to. I think we all need to again realize that credit is not a game or something to be milked.

I am not, OP, saying that you milked, churned, or anything -- just making a general point. Good luck

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It is BS though.

There is no way it can be called anything but.

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It probably isn't BS at all, unless you think Chase and other banks are wasting all their money on predictive models (which is what FICO tries to be as well).    Experience shows that certain patterns increase the probability of default (or other issues) above levels they deem acceptable, so when they spot such a trigger, they take action.   For any particular individual, the behavior might well be innocent and not indicitive of anything, but the economics presumably shows that false positives, where they lose a customer, is much less costly than false negatives, where they don't spot a problem in time.

As to why they don't inform you:  they would need to freeze the accounts (to stop any bad behavior that they see) and that really wouldn't be very different.

[kdm31091]

It's not a generalization. Even someone who makes a ton of money cannot possibly need over $100k in credit in a short amount of time, other than to MS, churn for a bonus, get some kind of reward, etc etc. I realize it's not a popular thing to say, but it's still true. You cannot get greedy and expect nothing to happen to you. That's all I was saying. And I am not even saying the OP was greedy or anything.

[Revelate]

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@Ysettle4 wrote:

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@kdm31091 wrote:

Unfortunately, that's not really BS. As horrible as it is, it is completely within every issuers right to shut down accounts with or without notice, for whatever reason they want.

Does that mean I agree with it? No. But it's also something that's fully disclosed in almost all T&Cs. If you open a ton of accounts with any lender, you have to be prepared  that they may see it as a red flag and can close your accounts. I'm not trying to lecture anyone, and I'm not defending Chase's reaction here either, but it doesn't make it BS just because they closed your accounts. Unfortunately, we could all wake up tomorrow and all of our accounts could be closed -- the creditors always retain the right to do this, and there's really nothing we can do other than try and convince them to reopen the accounts.

Best advice I think for anyone to glean from this and the string of other recent closures is to chill with apps and churning for bonuses. They're clearly catching onto it, whether your intent is bad or not, they obviously don't like it and reacting to quite a few people. This forum is only a small percentage of the population, yes, but that also means it's likely there's people who are NOT on here who it's happening to. I think we all need to again realize that credit is not a game or something to be milked.

I am not, OP, saying that you milked, churned, or anything -- just making a general point. Good luck

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The BS is mainly at the fact of extending me that much credit to only take it away - not so much their ability to close out at will - this is with any lender so nothing new there. It's clear that the one dept that extended the credit has different criteria for the dept that does the periodic reviews

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It has to be, lenders have to watch out for both internal and external sources of fraud.  It's happened at every single lender I've worked at, and every one that I'm aware of have checks and balances in place as a result.

This is irritating to be sure, but it's not the end of the world.  Chase's closing your accounts isn't going to set you back much if at all financially.

[Anonymous]

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@kdm31091 wrote:

It's not a generalization. Even someone who makes a ton of money cannot possibly need over $100k in credit in a short amount of time, other than to MS, churn for a bonus, get some kind of reward, etc etc. I realize it's not a popular thing to say, but it's still true. You cannot get greedy and expect nothing to happen to you. That's all I was saying. And I am not even saying the OP was greedy or anything.

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By this generalization. Which it is. No one should have credit limits over what their actual monthly spend is.

Now, THAT is an unpopular idea.

[red259]

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@Revelate wrote:

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@Ysettle4 wrote:

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@kdm31091 wrote:

Unfortunately, that's not really BS. As horrible as it is, it is completely within every issuers right to shut down accounts with or without notice, for whatever reason they want.

Does that mean I agree with it? No. But it's also something that's fully disclosed in almost all T&Cs. If you open a ton of accounts with any lender, you have to be prepared  that they may see it as a red flag and can close your accounts. I'm not trying to lecture anyone, and I'm not defending Chase's reaction here either, but it doesn't make it BS just because they closed your accounts. Unfortunately, we could all wake up tomorrow and all of our accounts could be closed -- the creditors always retain the right to do this, and there's really nothing we can do other than try and convince them to reopen the accounts.

Best advice I think for anyone to glean from this and the string of other recent closures is to chill with apps and churning for bonuses. They're clearly catching onto it, whether your intent is bad or not, they obviously don't like it and reacting to quite a few people. This forum is only a small percentage of the population, yes, but that also means it's likely there's people who are NOT on here who it's happening to. I think we all need to again realize that credit is not a game or something to be milked.

I am not, OP, saying that you milked, churned, or anything -- just making a general point. Good luck

---

The BS is mainly at the fact of extending me that much credit to only take it away - not so much their ability to close out at will - this is with any lender so nothing new there. It's clear that the one dept that extended the credit has different criteria for the dept that does the periodic reviews

---

It has to be, lenders have to watch out for both internal and external sources of fraud.  It's happened at every single lender I've worked at, and every one that I'm aware of have checks and balances in place as a result.

This is irritating to be sure, but it's not the end of the world.  Chase's closing your accounts isn't going to set you back much if at all financially.

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I have a lot off URs saved up and I don't know for sure how I want to use them yet. Likely will use them with Hyatt but also considering for flights. I'm paranoid that they will close my accounts and take away all the points after my most recent spree. I would hate to pull the URs out and put it into a program I am not happy with later

[kdm31091]

I didn't say "no one should have credit limits over their monthly spend"

My point was that proportinate to income, nobody needs 10 or 20 times their income in credit lines unless they want to be percieved as risky.  There's a fine line between enough to pad utilization comfortably, and just plain too much for your income, which a lender will see as risky. That was my point. Again, it's unpopular, but as more and more people are being shut down for too much credit, it may become more popular to decrease to proportionate levels of credit to one's income as opposed to the most they can possibly get.

[Anonymous]

I am so sorry about this happening get to you, OP... Chase seems to do this more often than other lenders and sometimes their motives seem puzzling.

I recently got two decent credit lines from Chase (neither of which I deserved with my FICOs scores, as you can see below) as well as a few other cards from other lenders... so now every time I log in and see my Chase accounts are still active, I breathe a silent sigh of relief.