topic Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie in Credit Cards

Beware- Requesting to consolidate Chase accounts may result in review of credit profie

tld409 — Tue, 03 Mar 2015 16:48:57 GMT

Hi Everyone,

As planned, I closed my Slate card and moved available line over to Freedom. Unfortunately, Chase decided to reduce my CSP from 5k to 2k in the process after reviewing my file. Their rationale is that since the Freedom and Slate card were less than 1 year old and my overall credit availability and current usage increased over a few months (since November 2014). Although my credit utilization is under 20%, they made this decision. After speaking with the rep. it appears that it would have been best to wait until 1 year after opening the Slate to close it. He didn't state this as fact but; based on the information he provided, it wasn't too hard to figure this out. I'm sure Chase will increase it back up to 5k or more later this year as they see my utalization decrease. I did review my budget plans for the year with the rep. as well. Just wanted to provide info# for those who may have been planning to request a consolidation within 1 year of opening accounts with chase.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

Skye12329 — Tue, 03 Mar 2015 17:32:48 GMT

So I'm assuming you closed the slate before promo Apr ended? You could have financed something.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

tld409 — Tue, 03 Mar 2015 17:41:44 GMT

@Skye12329 wrote:
So I'm assuming you closed the slate before promo Apr ended? You could have financed something.

Yes, I only opened the Slate for a balance tx. Unfortunately, the limit was too low to use it as I had intended. My plan was to close it right after I paid off the balance tx. since my Freedom card has a 0% until November 2015.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

Skye12329 — Tue, 03 Mar 2015 17:45:22 GMT

That bites. Well I think other lenders would also frown upon opening a card and closing it before 1 year. Not sure why?

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

Anonymous — Tue, 03 Mar 2015 17:54:11 GMT

They generally think you're reward hunting, which costs them money, so they look down on it.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

Anonymous — Tue, 03 Mar 2015 18:09:07 GMT

Largely depends on profile and internal scoring with them.

Another user reported a similar experience where they only allowed them to move half their CL over before closing a card.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

CreditCuriosity — Tue, 03 Mar 2015 18:15:07 GMT

Chase doesn't like Churning of cards so quickly just to move a CL over... It is pretty obvious this is becoming a trend to get CLI's. Some it might not happen to, but I gurantee you are looked at more closely if you close a card out before the AF hits and MOVE the CL over with the closure as well. Can't have the both of best worlds alot of the times. It appears they might be seeing this trend and chaning their policies quite possibly too.

Just my 2 cents.

Sorry to hear OP.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

baller4life — Tue, 03 Mar 2015 18:18:24 GMT

I closed my Slate same day of approval and moved limit to Freedom. No problems. Reported to credit as a closed account. Shredded card when it came in mail. Limit was too low for bt($2200).

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

CreditCuriosity — Tue, 03 Mar 2015 18:23:07 GMT

I recently moved 2500 of my Freedom over to my CSP to make my CSP 10k and freedom 1.5k (plenty for quarterly stuff) as I use the CSP alot more and I actually did get transferred to a portfolio risk analyst, but the transition went smoothly.. Not sure if this is the normal, but the difference is I didn't close the Freedom as I still have a use for it. I called The Analyst # and was transferred to the above dept. The computer was ok with it without a HP, she checked prior. Curious if this is other people experience as well?

As stated wonder if they are changing their policies, I did this about 1 or 2 weeks back and seemed strange.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

tld409 — Tue, 03 Mar 2015 18:24:02 GMT

@CreditCuriousity wrote:
Chase doesn't like Churning of cards so quickly just to move a CL over... It is pretty obvious this is becoming a trend to get CLI's. Some it might not happen to, but I gurantee you are looked at more closely if you close a card out before the AF hits and MOVE the CL over with the closure as well. Can't have the both of best worlds alot of the times. It appears they might be seeing this trend and chaning their policies quite possibly too.
Just my 2 cents.

Sorry to hear OP.

I agree.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

tld409 — Tue, 03 Mar 2015 18:28:44 GMT

@baller4life wrote:
I closed my Slate same day of approval and moved limit to Freedom. No problems. Reported to credit as a closed account. Shredded card when it came in mail. Limit was too low for bt($2200).

I did the same thing as well but then called back the very next day and had them re-open the account since it was already a hard pull and would report on my credit reports. However, I only had the CSP at that time not the Freedom. So the credit was moved to CSP then returned back to the Slate.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

Anonymous — Tue, 03 Mar 2015 18:36:37 GMT

How soon did you get CLD after you moved limits?

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

Anonymous — Tue, 03 Mar 2015 18:43:18 GMT

Sorry OP. I closed my SW Plus card and moved the limit over to my SW Premier card and it took about 5 days to do it via SM. I was able to move the full 3K making the Premier 8K. I'm guessing its a YMMV thing. I did see where they softed me during this process. This is the message I received:

Dear georgiapeach:

Thank you for your request to combine or adjust the credit
lines on your accounts ending in **** and ****. To process
your request, we reviewed the information you provided,
your credit history and your account information.

After our review, we adjusted the credit lines on your
accounts to complete the credit line changes you
requested.

How this decision affects your existing accounts
Here?s a summary of the adjustments:

Account Ending In/Account Status Previous Credit Line/New
Credit Line
****/Line Decrease and Closure $3000.00/$0.00
****/Line Increase
$5000.00/$8000.00

Please note if the credit line was decreased on your
business card with employee accounts, the lines lower than
or equal to the new credit line will not change. Any
accounts with credit lines higher than the new line will
be lowered.

Here are a few reminders about closed accounts
?You?ll continue to receive monthly billing statements as
long as a balance remains on the account.
?You must make at least the minimum monthly payment until
the balance is paid in full or you may pay the entire
balance any time.
?Your account remains subject to its current terms and
conditions.
?For your protection, please destroy any cards and checks
that access the account.
?If you have authorized users or employee cards linked to
this account, please let the cardholders know the account
is closed and the cards should be destroyed.
?If this account is linked to a checking account for
Overdraft Protection, this feature is no longer available.
?If you?ve arranged for companies to bill your account
automatically, such as insurance or Internet services,
please contact them to make other arrangements.

If you have any questions, please call 1-800-219-0015.
We?re available Monday through Friday, 8 a.m. to 10 p.m.
Eastern Time.

Sincerely,

Customer Support Specialist

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

tld409 — Tue, 03 Mar 2015 19:03:23 GMT

@Anonymous wrote:
How soon did you get CLD after you moved limits?

It happened as a result of the review of my credit profile (soft pull) which was done over the phone when I called to request the consolidation of my Slate and Freedom. Slate was closed and limit moved over to Freedom but CSP was decreased from 5k to 2k. I really only use CSP for restaurants but now that PRG is going to have 2 points for restaurants, I really doubt I will keep the CSP. I will wait to make a final decision about this when the annual fee is due. I also have a Sam's MC which gives 3 points/dollar (cash back) for restaurants. Definitely leaning to closing CSP....

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

bradlin — Tue, 03 Mar 2015 23:13:14 GMT

@Anonymous wrote:
They generally think you're reward hunting, which costs them money, so they look down on it.

This is where I get confused as heck about this. They make money from swipe fees but the rewards kind of kills that for them. They make money from you carrying a balance and looking at the rates they offer (prime +7.99-15.99 etc) they must make a killing off this. But then they frown upon your utilization which is ultra profitable to them. I mean you get a nice fat interest bill equal to a fat cell phone bill or a cable bill or even a car lease if you keep the balance beyond the grace period.

Then I hear some cards like CSP are designed for people who always pay in full. Then who are those people? Are they not rewards seekers? These are the prime customers who are also the not profitable customers. So where do they make their money? When a member of this "prime" decides to carry a balance every now and then?

I feel like their business revolves around giving someone a high enough credit line that it entices them to overspend or maybe offer a buffer for emergencies to people who are likely to pay it off in a few months. But then at the same time they hold back peeople from doing what is profitable for them by reducing people's lines.

You can't win with the banks. If you PIF every month you'll get dropped into some "unprofitable" tranch at the bank even though you are a "prime" customer carrying their most rewarding card with your nice credit rating, DTI ratio, and monthly spend. If you utilize your card and kick them hundreds a years in interest you are now "sub prime" with them but put into the "profitable tranch" but they'll freak out and SP you every 15 days and find any reason to reduce your CL.

Could some please summarize how this works? I guess it really comes down to some high level proprietary risk analysis.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

bradlin — Tue, 03 Mar 2015 23:06:03 GMT

@CreditCuriousity wrote:
Chase doesn't like Churning of cards so quickly just to move a CL over... It is pretty obvious this is becoming a trend to get CLI's. Some it might not happen to, but I gurantee you are looked at more closely if you close a card out before the AF hits and MOVE the CL over with the closure as well. Can't have the both of best worlds alot of the times. It appears they might be seeing this trend and chaning their policies quite possibly too.
Just my 2 cents.

Sorry to hear OP.

But Slate doesn't have an AF. And it's not like he milked the BT deal which is the only deal that card has.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

bradlin — Tue, 03 Mar 2015 23:06:54 GMT

@baller4life wrote:
I closed my Slate same day of approval and moved limit to Freedom. No problems. Reported to credit as a closed account. Shredded card when it came in mail. Limit was too low for bt($2200).

Effectively HP CLI then?

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

CreditCuriosity — Tue, 03 Mar 2015 23:10:58 GMT

@bradlin wrote:
@Anonymous wrote:
They generally think you're reward hunting, which costs them money, so they look down on it.
This is where I get confused as heck about this. They make money from swipe fees but the rewards kind of kills that for them. They make money from you carrying a balance and looking at the rates they offer (prime +7.99-15.99 etc) they must make a killing off this. But then they frown upon your utilization which is ultra profitable to them. I mean you get a nice fat interest bill equal to a fat cell phone bill or a cable bill or even a car lease if you keep the balance beyond the grace period.

Then I hear some cards like CSP are designed for people who always pay in full. Then who are those people? Are they not rewards seekers? These are the prime customers who are also the not profitable customers. So where do they make their money? When a member of this "prime" decides to carry a balance every now and then?

I feel like their business revolves around giving someone a high enough credit line that it entices them to overspend or maybe offer a buffer for emergencies to people who are likely to pay it off in a few months. But then at the same time they hold back peeople from doing what is profitable for them by reducing people's lines.

You can't win with the banks. If you PIF every month you'll get dropped into some "unprofitable" tranch at the bank even though you are a "prime" customer carrying their most rewarding card with your nice credit rating and income. If you utilize your card and kick them hundreds a years in interest you are now "sub prime" with them but put into the "profitable tranch" but they'll freak out and SP you every 15 days and find any reason to reduce your CL.

Could some please summarize how this works? I guess it really comes down to some high level proprietary risk analysis.

Probably hope you keep the card for more then one year then dumping it before the AF hits (see Ritz carlton card and CSP here among others). People on here are a unique bunch of people that aren't the norm and are more educated thus most people cancel before the AF hits, but this can cause issues as well as you are considered a churner.. So they probably hope you carry a balance as well of say 10% of your CL and then they would make their money back of the signup bonus. Ya you really can't win if you are educated.. I plan on keeping my CSP for more then the first year though, so they will make 95$ of their signup bonus back from me, but no interest and some swipe fees so they might make 150 back of the initial bonus.. Ya you kinda can't win sometimes. What they deffinetly do look down upon is churning of the cards as obviously they lose money. Meaning keeping under a year transferring limits and canceling your cards before the AF hits then re-applying in a few years for another sign-up bonus although people will argue differently.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

CreditCuriosity — Tue, 03 Mar 2015 23:13:42 GMT

@bradlin wrote:
@baller4life wrote:
I closed my Slate same day of approval and moved limit to Freedom. No problems. Reported to credit as a closed account. Shredded card when it came in mail. Limit was too low for bt($2200).
Effectively HP CLI then?

Bingo.

Chase is catching onto this.. Appears more so this year from what Ihave read. Although I think she was hoping for a better limit and might of used it, but didnt get it thus rolled it into another CL.. Most people open up say a Signature card min 5k cl keep for first year roll CL into another card and close account. This lies the problem that Chase is dealing with imo.

Re: Beware- Requesting to consolidate Chase accounts may result in review of credit profie

baller4life — Tue, 03 Mar 2015 23:15:49 GMT

@bradlin wrote:
@baller4life wrote:
I closed my Slate same day of approval and moved limit to Freedom. No problems. Reported to credit as a closed account. Shredded card when it came in mail. Limit was too low for bt($2200).
Effectively HP CLI then?

Ummmm no. One TU hp for both Freedom and Slate. Sorry, should have been more clear. Apped Slate and Freedom same day from pre-qual site.