UPDATE: POLICY CHANGE -CHASE: Lets put our heads together on recent denials.

[yfan]

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@Anonymous wrote:

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@yfan wrote:

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@Anonymous wrote:

Maybe... But why all of sudden too many new accounts in the last 2 years?  Why 2 years?  And then there are the inquiries when we thought Barclays was the one to be on the look out for...

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I think this has a simple answer: churning. Banks in general hate churners who get the bonuses, stop using the cards or cancel them, and apply in two years again. But how do you detect churners before they churn from your bank? You look at their application patterns. Chances are, serious churners are always on the lookout for the opporutnity to churn, and thus will have inquieries from other institutions.

I think that's what Chase is doing. They are using inquiries as a (very) imperfect approximation to estimate churning behavior. When you get one of their cards, Chase wants you to use it long term; in fact that is the goal of the generous sign-up bonuses: to get you in the habit of using the card, a habit that they hope persists after the bonus is earned.

While I am not a big Chase fan, I do think this behavior is here to stay - and - spread to other lenders as lenders search for better methods to weed out churning.

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Us bonus seekers should certainly hope not! What an awful thought.

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Whether or not it's an awful thought depends on who's doing the thinking. As you and I have sparred here many times, I personally am of the belief that cracking down on churning helps preserve day-to-day benefits and value of rewards, so I view this as a positive move. Nevertheless, the OP in this thread asked to put our heads together as to why the Chase denials were happening, not on whether it was good or bad.

[Anonymous]

I think these credit card bloggers are the real churners and ruining things for everyone unfortunately.  For example, one blogger applying 5 times for the same credit card and getting approved will cause any bank to quickly tighten screws.

And then the average consumer suffers which I am hoping is not the case here.

[Anonymous]

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@Anomalous wrote:

Following.

I'm gardening what I have with the hopes of getting in with Chase this year.

Thanks for creating this thread.

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Are you checking the prequalifier?  You might have a pre approval already!

[DeeBee78]

@Anonymous wrote:

So I am one of Chase's biggest fan.  I really like them because when I was starting out one of their banker's always made time to walk me through transactions, what I did wrong, what I should be doing etc..

Not alot of people usually go out of their way to want to help hence my fierce love for them.  At the same time, there are others who loathe them with a passion which I can understand.  

But recently, there has been a surge of denials with the same reason- too many inquiries, too many accounts for the last 2 years etc... What do you guys think is going on?  This is worrying and can be terrifying if you are wanting a Chase card.  Any thoughts, insights? Why do like like /loathe them?

For Chase credit analysts on here, disguise youselfs and tell us what is going on....

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Frankly, I'm surprised I was approved for a $3500 limit on my Freedom. I was expecting maybe $1K. Then when they denied me a checking account based on my Experian report, I was really confused. 

And don't get me started on the 30k Venture approvals for people with recent BK's - that's just ridiculous. 

[Anonymous]

I'm not so sure about your churning theory. One thing about bonus churners.....The risk that they won't pay their bills is typically much less than approving a borrower that has shown a history of defaults, which there was an increase of over Q4-14, Q1-15 for JPM.

Bonus churn losses are such an insignificant amount in the grand scale that it isn't enough of a problem to bring change to underwriting standards. Eligibility restrictions, yes. Underwriting, no.

[Anonymous]

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@Anonymous wrote:

I think these credit card bloggers are the real churners and ruining things for everyone unfortunately.  For example, one blogger applying 5 times for the same credit card and getting approved will cause any bank to quickly tighten screws.

And then the average consumer suffers which I am hoping is not the case here.

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Agree here.  I see many on here doing it.  I app'd for the cards I wanted to keep in my wallet.  No other reason.  It's like anything else.  Abuse it & it's gone.

[Anonymous]

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@DeeBee78 wrote:

@Anonymous wrote:

So I am one of Chase's biggest fan.  I really like them because when I was starting out one of their banker's always made time to walk me through transactions, what I did wrong, what I should be doing etc..

Not alot of people usually go out of their way to want to help hence my fierce love for them.  At the same time, there are others who loathe them with a passion which I can understand.  

But recently, there has been a surge of denials with the same reason- too many inquiries, too many accounts for the last 2 years etc... What do you guys think is going on?  This is worrying and can be terrifying if you are wanting a Chase card.  Any thoughts, insights? Why do like like /loathe them?

For Chase credit analysts on here, disguise youselfs and tell us what is going on....

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Frankly, I'm surprised I was approved for a $3500 limit on my Freedom. I was expecting maybe $1K. Then when they denied me a checking account based on my Experian report, I was really confused. 

And don't get me started on the 30k Venture approvals for people with recent BK's - that's just ridiculous. 

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@DeeBee78,

So they gave you a credit card and then denied you for checking..?  Thats ridiculous they deny you opening a checking account. Makes you wonder....

[Anomalous]

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@Anonymous wrote:

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@Anomalous wrote:

Following.

I'm gardening what I have with the hopes of getting in with Chase this year.

Thanks for creating this thread.

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Are you checking the prequalifier?  You might have a pre approval already!

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Nothing so far. I just unfroze my reports though and had to opt back in. Once I see it, I'm going to go for it  

[Anonymous]

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@Anomalous wrote:

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@Anonymous wrote:

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@Anomalous wrote:

Following.

I'm gardening what I have with the hopes of getting in with Chase this year.

Thanks for creating this thread.

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Are you checking the prequalifier?  You might have a pre approval already!

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Nothing so far. I just unfroze my reports though and had to opt back in. Once I see it, I'm going to go for it  

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Yes!  I would too!  

[Anonymous]

I bank with them, have what I believe is a good CC profile, have both business and personal checking accounts with them with practically enough to be a private client, and also just got denied...