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Valued Member
jmkess
Posts: 40
Registered: ‎07-30-2009

Re: Some other credit card questions

Honestly, when I asked about potential of cancellation, they kinda blew me off like I was a little crazy.  They seemed more concerned with identity theft than cancellation or closure.  They said "as of now, your accounts are all current and in good standing with us".

 

I guess that's a good thing!

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Some other credit card questions


jmkess wrote:

Honestly, when I asked about potential of cancellation, they kinda blew me off like I was a little crazy.  They seemed more concerned with identity theft than cancellation or closure.  They said "as of now, your accounts are all current and in good standing with us".

 

I guess that's a good thing!


Quite possibly not noted then.

Established Contributor
jackg
Posts: 553
Registered: ‎04-26-2007

Re: Some other credit card questions

lmkess,

 

 1.  In order to be an Authorized User on someone's credit card (in this case, my husband), will that card company pull my Credit Report in order to issue me the card, or will they just issue it, no questions asked?

No, they won't pull your report.

 

2.  If I am made an AU on my husbands card, which currently has a $25000 CL, with perfect history.  If Chase or Amex pulls my credit report after I am an AU on this card (with that much more available credit which will in turn hopefully raise my FICO score), is that something that would change their determination in closing or not closing an account?

Possible, no way to predict their opinion.

 

 3.  I am still curious about accounts being closed for no activity.  Presently, I'm just working on paying down my balances on my 2 Chase cards...not putting ANY charges on them.  For example, I have not charged anything on one of my Chase cards since last November...I'm just paying down the balance.  Could they theoretically close the account for no activity since I am only presently paying off the balance on that card?  Does it make sense to put a small charge on that card and PIF that charge before the statement cuts so I am only left with the balance that I am paying down, but they see "activity"?

In my opinion, payments are activity. I say this because I have 1 CC that I made a big charge to in July '08 and have'nt charged since then, just making payments.

 

4.  I will completely PIF one card by the end of this year with plans to PIF the other card by April 2010.  Obviously my utilization on these cards is going down dramatically (for me anyway...nearly 10K in CC debt will be cleared away at that time).  Do the companies take this into account when making the determination to keep an account open or closed?

Tough to answer but we all know that their purpose in life is to collect interest from us, and to do that you have to have an account. Just my opinion.

 

5.  What defines a "late payment" as far as a card is concerned?  Is this a late fee that you made on an account but wasn't reported to the credit bureau or a late that WAS reported to the bureau.  For example, I paid my Amex blue card late in June (I misread the due date and paid 2 days after the due date).  It was never reported to the bureau (although, not surprisingly, my rate went up).  Is this the type of late that these cards are looking at?

To be 30 days late, the first point where a CCC can report you, means that your payment was received 30 days after the due date and it will be reported to all 3 CRA's.

 

6.  This is my final and probably most ridiculous question.  I called Chase and Amex the other day and expressed concern about the potential closure of my accounts...do you think there is a "list" that someone gets put on if you even inquire about that possibility?

The internal documentation of your account at the CCC is just guesswork. As an example at AMEX if you ever include them in a BK you will be blacklisted and probably have about a 1% chance of ever opening another account with them. In your case I can't imagine that your discussion could result in any type of adverse action.

 

 

 

 

 

 

 

4/10/14
EX=727
EQ=717
TU=718
Valued Member
jmkess
Posts: 40
Registered: ‎07-30-2009

Re: Some other credit card questions

In fact, they actually commented that they could see that one of the balances on my card was going down very dramatically.  They sounded positive about that.
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Some other credit card questions


jmkess wrote:

They take into account what you have done. They do not take into account that which you intend to do. Issuers are particularly concerned about how you deal with their card, but can also be looking at your credit report as a whole, which means they may be looking at all of your other accounts as well. It all can matter.


A follow-up question to that...so would it be better to alternate $1K payments on each of those cards and bring the overall util down on BOTH of them to 50%, or continue to do the snowball approach on the cards, and have one card reporting 0% util and another card reporting 80% util?


 

I don't remember what your debt distribution is like so it is hard for me to advise you.
Valued Member
jmkess
Posts: 40
Registered: ‎07-30-2009

Re: Some other credit card questions

This is my debt distribution - I know that my util is very high!

 

Chase 1 - $3870.26 / $5100CL - Min is now $121, but I am paying $1010

Chase 2 - $4404.37/  $5000CL - Min is now $106, but I pay $110

 

For some reason, I'm more concerned about Chase cancelling my account than Amex.

 

If all goes according to plan, my util will be at just below 20% on the Chase 1 Card after my November 2009 payment with the intent of PIF on the December 2009 statement (I am going to TRY and pay off Chase 1 altogether before the December statement cuts on November 28, 2009, but it's not a guarantee.  More likely, I will PIF Chase 1 on December 21, 2009).

 

Once Chase 1 is paid off, I am planning on making payments of $1120/month to get the Chase 2 card finished in 4 months by April 2010.

 

Beginning with this month (September 2009 payment) I will be paying $1010/month to Chase 1.  I am curious if I alternate payments, if I am better served to lower the util on BOTH cards?

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Some other credit card questions


jmkess wrote:

This is my debt distribution - I know that my util is very high!

 

Chase 1 - $3870.26 / $5100CL - Min is now $121, but I am paying $1010

Chase 2 - $4404.37/  $5000CL - Min is now $106, but I pay $110

 

For some reason, I'm more concerned about Chase cancelling my account than Amex.

 

If all goes according to plan, my util will be at just below 20% on the Chase 1 Card after my November 2009 payment with the intent of PIF on the December 2009 statement (I am going to TRY and pay off Chase 1 altogether before the December statement cuts on November 28, 2009, but it's not a guaranteeMore likely, I will PIF Chase 1 on December 21, 2009).

 

Once Chase 1 is paid off, I am planning on making payments of $1120/month to get the Chase 2 card finished in 4 months by April 2010.

 

Beginning with this month (September 2009 payment) I will be paying $1010/month to Chase 1I am curious if I alternate payments, if I am better served to lower the util on BOTH cards?


 

There is no correct answer to this question. Either approach could be wrong. I assume you are trying to make the payments in such a way as to favor the account with the higher APR. This logic is as valid as any other. If this was my situation, and assuming Chase #2 has the lower APR, I would pay $250/month toward this account. I would do this for the following reason: Card issuers look at your payments in terms the percentage of the balance paid averaged over a period of time. I have read inside information presented elsewhere by a credit rep that an average payment rate of 6% is considered very good - and 6% of $4400 = $264. Making consistent $250 payments will get and keep you on this target. I believe this insider was a Citi rep, but I think the concept can be applied everywhere. Minimum payments are never a good idea.
Valued Member
jmkess
Posts: 40
Registered: ‎07-30-2009

Re: Some other credit card questions

[ Edited ]

That is an approach that I have never thought of before.

I just did the math, and if I do the $250 payment on Chase 2, I will PIF Chase 1 in 5 months instead of 4...really not such a significant difference.  It is using the same amount of money, but driving down the overall util on both cards together.

 

That's a really good idea - I think that might be my plan for Chase 1 and Chase 2.

Although...I was rather looking forward to making Chase 1 disappear by the close of 2009...which gives me added incentive to try and find more $ to throw at these cards!

 

Also, in looking at my calculator, I will STILL be able to keep on schedule of PIF Chase 2 by April 2010.  This is a great idea in reallocation of paying down my cards.

 

I wasn't intending to pay off the highest APR 1st...my parents are an AU on Chase 1...and even though I removed them, allegedly (I say allegedly because I have yet to see their credit report), my dad says that Chase 1 still reports on their credit report.  So I want to get it down to help my FICO, but also theirs. 

When I learned of the "snowball" approach of paying off the lowest debt first, Chase 1 had already become my card with the lowest debt...so it works out both ways in that my lowest balance card also has the highest APR.

Message Edited by jmkess on 09-01-2009 08:15 AM
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Some other credit card questions

I think you are on the right tract now. What I am suggesting lowers the chances that Chase will not like you for making payments that are "too small". However, when dealing with Chase there are no guarantees!

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