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Valued Contributor
Posts: 2,682
Registered: ‎07-29-2009
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Re: chase encouaging me to lower my balance,------ why?


ficorun wrote:

chase has ofered me $200 if i pay $600 month for next sixmonths wothout using card in this time period.

 

why?

they would be giving up 20% interest

 

or

 

do they benefit if my fico score goes up?//

[it would if i go forward with thid deal]

 

or  why else??

 

must besome motivation on their part!


I took it from the above statement from the OP that this offer would be interest free. Perhaps I was wrong. Maybe OP just means that Chase would be giving up long-term interest because of the fast pay off.

 

Either way, OP will likely be balance-chased down. I would pay off those cards in the order of highest interest rate first. If this is an interest-free offer, I would take it. If it's one of OP's highest interest rates, I would take the offer.

 

FICO is important, but I also think it's important to not let your FICO score cost you money.

Senior Contributor
Posts: 3,071
Registered: ‎05-17-2007
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Re: chase encouaging me to lower my balance,------ why?

Your FICO score is amazingly high considering potential +800's, with a CR so strong it could also be a warning, nothing lese. They are trying to reduce their risk.

 

The fact that they are asking you to stop using the card concerns me. I've been there more than once with other banks including Chase. First I'd do what financially benefits you the most = Pay off highest interest rate cards first. In my opinion they have already took an interest on this account. I'd guess if you take the $200 cr or not it probably won't change the outcome. I'd expect a possible CLD as debt goes lower. I'd focus on paying all your debt down, sice it's your over all debt that probably caught their attention. (Specifically numbers of accounts with debt even more so) I'd hold a small balance on this card ($50) when close to PIF to hopefully prevent them from closing it when you finally get around to PIF and then make sure all other cards report a ZERO BAL FIRST on your CR. Then PIF the Chase card after your cr updates with as many zero balances as possible. So this way when they make the decision whether to close or keep open your card they can see as much zero debt accounts as possible. In many cases this helped me keep my credit lines and cards open.

 

This is not abnormal for Chase to proactively contact customers about debt and doesn't mean they will take action either. The moment you see them chasing down debt with CLDs, then take things very seriously. Once you reduce debt and numbers of debt they will probably loose interest with good clean credit.

If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Senior Contributor
Posts: 3,071
Registered: ‎05-17-2007
0

Re: chase encouaging me to lower my balance,------ why?

[ Edited ]

ficorun wrote:

[total line for this card was dropped last year fromm 15000  to current 9900]

I am concerned that once my balance goes down they will lower  my credit line again

and then my fico will not improve,so why should i strain to paydown this one and not another?


Didn't see this one.

Cld may happen again ' while ' your overall debt is high.

They may recude cl as you reduce debt.

This is not to help you, it's to reduce Chase's risk.

 

Do what benefits you most. If your debt is paid on Chase and you have high debt with other cards they have more motivation to close the card. Decisions are generally based on a current picture.

 

I posted earlier:

Once you reduce debt and numbers of debt they will probably loose interest with good clean credit. 

Message Edited by ilovepizza on 03-01-2010 02:02 PM
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
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