cancel
Showing results for 
Search instead for 
Did you mean: 

account closure

tag
taxi818
Super Contributor

Re: account closure


@Anonymous wrote:

Sorry to hear.  I do think there's more to it.  You all know I have quite a few cc's.  I charged my RH card up to the max.  I mean the whole 9k for some lighting.  Then had about 30-40% on some others right after Xmas.  No red flags at all.  Just paid all the others off & left RH.  Pay RH every month but in no hurry since it's 0% apr.  It is down to 50% now.  No one got spooked by this. (knock on wood).  Smiley Wink  I did show that I can pay the others just fine & this one too.  But no one should be penalized for using their cc's.  I guess if you had 90% utilization for about 6 months, cc's might get a bit freaked out.  


thats fine using just percentages. but that is not reality. if my percentage of 50 percent is say 40k. not 5k we are talking whole different ball game .. for the banks. its best not to put personal experience into op's situation. only the op and the banks know the actual amounts. it is not common for a bank to close an account unless there is some justification at least in their minds. or the computer system. so everything else in this thread is just pure speculation at best. thats why many asked op what are the actual dollar amounts.

Message 61 of 106
Cory
Established Contributor

Re: account closure

Wow!

Chase is really a stickler about closing accounts. Chase closed two accounts of mine in 2013, so I know the feeling. I wonder if and when they will ever slow down!

Message 62 of 106
Anonymous
Not applicable

Re: account closure

This is proof that one should not rely strictly on their credit cards and forego having cash.

 

These too big to fail banks have lots of issues external to their cardholders that could cause them to over monitor their accounts.

 

Let's face it, what is the point of having a $10,000 limit card (for examples sake) if you can't use it the way you want to as long as the minimum payments are being made.After all they are earning substantial interest.

 

Owing 50% on a credit card is nothing. Or 75% for that matter. That is why we need agencies like the CFPB and they need more teeth than they have to protect us from adverse bank behavior which can destroy average citiizens lives.

 

When I was an au on a Citibank card with a $30,000 limit that my mom opened for my exclusive use in the past, they used to call her constantly when I was traveling  and would charge $1000 or so in a short period of time. Of course she didn't know what I was charging,  and the rep would tell her to take me off the card. 

 

Citibank and Chase have been engaged in highly unethical behavior and that can be why they are paranoid of an uncontrolled increase in cardholders that they may deem risky at some point.

 

When Jamie Dimon Ceo of Chase was confronted about risky investments the bank was making, his response was to fine the bank,  he didn't care. These banks were bailed out to avoid a major financial collapse,  and they are conducting business in the same way they were pre collapse.

 

So the AA actions you experience may be taken to provide the bank cover for their own risky behavior. 

 

If these banks bottom out again we could lose our credit ratings and accounts. We can't rely strictly on credit.  The bank owns our accounts, we don't. 

 

What is the point of having a wallet full of cards that only see 1% usage. Credit exists so that consumers can buy things they lack cash for and pay over time. The bank profits from the interest charged on the transactions. When a bank issues a credit limit and a minimum payment,  and the customer stays within both guidelines and gets a cld or account closure, that is a lender overstepping it's bounds.

 

 

 

 

 

Message 63 of 106
Anonymous
Not applicable

Re: account closure


@Anonymous wrote:

This is proof that one should not rely strictly on their credit cards and forego having cash.

 

These too big to fail banks have lots of issues external to their cardholders that could cause them to over monitor their accounts.

 

Let's face it, what is the point of having a $10,000 limit card (for examples sake) if you can't use it the way you want to as long as the minimum payments are being made.After all they are earning substantial interest.

 

Owing 50% on a credit card is nothing. Or 75% for that matter. That is why we need agencies like the CFPB and they need more teeth than they have to protect us from adverse bank behavior which can destroy average citiizens lives.

 

When I was an au on a Citibank card with a $30,000 limit that my mom opened for my exclusive use in the past, they used to call her constantly when I was traveling  and would charge $1000 or so in a short period of time. Of course she didn't know what I was charging,  and the rep would tell her to take me off the card. 

 

Citibank and Chase have been engaged in highly unethical behavior and that can be why they are paranoid of an uncontrolled increase in cardholders that they may deem risky at some point.

 

When Jamie Dimon Ceo of Chase was confronted about risky investments the bank was making, his response was to fine the bank,  he didn't care. These banks were bailed out to avoid a major financial collapse,  and they are conducting business in the same way they were pre collapse.

 

So the AA actions you experience may be taken to provide the bank cover for their own risky behavior. 

 

If these banks bottom out again we could lose our credit ratings and accounts. We can't rely strictly on credit.  The bank owns our accounts, we don't. 

 

What is the point of having a wallet full of cards that only see 1% usage. Credit exists so that consumers can buy things they lack cash for and pay over time. The bank profits from the interest charged on the transactions. When a bank issues a credit limit and a minimum payment,  and the customer stays within both guidelines and gets a cld or account closure, that is a lender overstepping it's bounds.

 

 

 

 

 


There is a happy medium between 1% and 99%

 

Showing that you are not a risky borrower is one of the biggest hurdles. Yes, they could leave you high and dry when you need them the most, but accordingly this is when you are the most risky borrower.

 

This is why lender diversity is important.

Message 64 of 106
Anonymous
Not applicable

Re: account closure

I agree with diversity.Not putting all your eggs in one basket. And getting a fat enough profile where an AA won't severely hurt ones utilization.
Message 65 of 106
baller4life
Super Contributor

Re: account closure


@Anonymous wrote:
I agree with diversity.Not putting all your eggs in one basket. And getting a fat enough profile where an AA won't severely hurt ones utilization.

+1000

Message 66 of 106
taxi818
Super Contributor

Re: account closure


@Anonymous wrote:

@Anonymous wrote:

This is proof that one should not rely strictly on their credit cards and forego having cash.

 

These too big to fail banks have lots of issues external to their cardholders that could cause them to over monitor their accounts.

 

Let's face it, what is the point of having a $10,000 limit card (for examples sake) if you can't use it the way you want to as long as the minimum payments are being made.After all they are earning substantial interest.

 

Owing 50% on a credit card is nothing. Or 75% for that matter. That is why we need agencies like the CFPB and they need more teeth than they have to protect us from adverse bank behavior which can destroy average citiizens lives.

 

When I was an au on a Citibank card with a $30,000 limit that my mom opened for my exclusive use in the past, they used to call her constantly when I was traveling  and would charge $1000 or so in a short period of time. Of course she didn't know what I was charging,  and the rep would tell her to take me off the card. 

 

Citibank and Chase have been engaged in highly unethical behavior and that can be why they are paranoid of an uncontrolled increase in cardholders that they may deem risky at some point.

 

When Jamie Dimon Ceo of Chase was confronted about risky investments the bank was making, his response was to fine the bank,  he didn't care. These banks were bailed out to avoid a major financial collapse,  and they are conducting business in the same way they were pre collapse.

 

So the AA actions you experience may be taken to provide the bank cover for their own risky behavior. 

 

If these banks bottom out again we could lose our credit ratings and accounts. We can't rely strictly on credit.  The bank owns our accounts, we don't. 

 

What is the point of having a wallet full of cards that only see 1% usage. Credit exists so that consumers can buy things they lack cash for and pay over time. The bank profits from the interest charged on the transactions. When a bank issues a credit limit and a minimum payment,  and the customer stays within both guidelines and gets a cld or account closure, that is a lender overstepping it's bounds.

 

 

 

 

 


There is a happy medium between 1% and 99%

 

Showing that you are not a risky borrower is one of the biggest hurdles. Yes, they could leave you high and dry when you need them the most, but accordingly this is when you are the most risky borrower.

 

This is why lender diversity is important.


+1 have too agree with nixon on this. No one said stay at 1% extreme. But no need to be at 80% either. If you are diverse. With many lenders. I will never need to be at 30 percent with over 100k in limits. That's the whole reason for number of cards. But if average joe has 2 cards only. Then Houston. We got a problem. 

Message 67 of 106
JSS3
Valued Contributor

Re: account closure

Yes...diversity is key, but some lenders have some really good cards; making the two mutually exclusive. As much as I diversify, it would suck to be blacklisted from certain lenders moreso than others. Diversity and all...

Message 68 of 106
CreditCuriosity
Moderator Emeritus

Re: account closure

I guess what is the point of having say a 10k credit line if you use say 5k of it and want to carry a balance for several months since you are at a 0% apr.. Other bank SP's you, alerts start being set off and next you end up with say a closed Chase card...  What is the point of a CL if you can't utiilize 0% apr for a few months without other lenders taking AA on you.. So essentially a 10k CL is really like a 1-2k CL if you want to avoid AA from other lenders as once you start getting above 30% other lenders start taking notice..  Talking about Chase mainly here, but BofA is known for this as well as many others..  Computers and analytics  have helped out alot of stuff, but have recently made banks way to sketchy.

Message 69 of 106
kdm31091
Super Contributor

Re: account closure

I kind of fall in the middle for this debate. While I understand the logic of "what's the point of a high limit if you can't use it", the reality is that although banks want you to carry a balance so they earn interest, that does not mean repeated high utilization is not risky for them.

 

Think about it. If you have say a $20k limit on a card, even if your income is $100k, it's certainly somewhat risky on the banks end if you are carrying a huge amount of that as a balance. Your cc bill is one of many expenses every month. If you are repeatedly charging high amounts and unable to pay them back, you're going to appear risky. The point of a credit limit is to carry a balance yes but high utilization is always going to be risky. It's not like you are using a bank account with your own actual money. This is a credit card. Money lent to you. While you are able to use up to your limit, of course, doing it repeatedly is going to signal that you aren't in control of your money. If you were, you wouldn't be racking up such huge amounts on a credit card but rather, you'd be paying it off quicker or you'd just be using debit/cash.

 

This isn't really directed towards OP, as they weren't necessarily overextending themselves, but it's a reality and like I said, nobody wants to discuss it around here but there are people who do have tendencies to overextend themselves with apping and cards (from what they have said on here).

Message 70 of 106
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.