topic account closure in Credit Cards

account closure

Anonymous — Sat, 16 May 2015 11:59:04 GMT

Turns out chase closed my freedom card due to my overall utilization and utilization with them. I'm taking advantage of low rates and still paying a few things off so its understandable. Never late but utilization with them is around 40% and overall total around 50%. The good part is that they sent a letter stating I can keep the low rate until its paid off as long as I make the payment each month. Also, my online account shows it closed but they kept the available credit intact so hopefully they will report it with that available for utilization purposes. I'm not sure how it works with a closed account though.

Not my first choice to have it closed but they were very fair about it and I wont be burning them in the process so once things change I can get another card with them later on.

Re: account closure

Anonymous — Sat, 16 May 2015 12:06:05 GMT

Hmm....

I'd call them and fight it.

Re: account closure

Anonymous — Sat, 16 May 2015 12:28:03 GMT

Thats terrible. You are the 2nd person whose Freedom has closed in the last 24 hours on this forum. I hope this does not become a trend for Chase. I'd call and try to get it re-opened as some have reported some success doing it.

Re: account closure

pizza1 — Sat, 16 May 2015 13:55:42 GMT

Im sorry OP...That stinks. This is why I keep basically 0-1% reporting, especially for me. I don't want any creditor to say oh, you have 30% util on this or that card, we need to shut you down. Chase is BAD about that, and they are more skittish than Barclays. Id fight that big time. Sorry again for the closure, that really stinks

Re: account closure

taxi818 — Sat, 16 May 2015 14:05:14 GMT

@Anonymous wrote:
Thats terrible. You are the 2nd person whose Freedom has closed in the last 24 hours on this forum. I hope this does not become a trend for Chase. I'd call and try to get it re-opened as some have reported some success doing it.
So true yes. 2nd person. But in both cases. High utilization. This is why having high limits across board is crucial. In case you need to use it. That's why it's called credit. Sorry op it happen to you. I wonder how much you combined limits. Since you at 50%. I do hope they don balance chase you on the limit.

Re: account closure

Anonymous — Sat, 16 May 2015 14:06:48 GMT

I mean if you are making big purchases 50% uti is nothing.

Do they panic if a balance is carried over several months? or are they just gun shy?

I dont do business with Chase so I have no first hand knowledge.

Re: account closure

taxi818 — Sat, 16 May 2015 14:36:51 GMT

@Anonymous wrote:
I mean if you are making big purchases 50% uti is nothing.
Do they panic if a balance is carried over several months? or are they just gun shy?
I dont do business with Chase so I have no first hand knowledge.

That's not issue. A big purchase. Op is 40% on freedom. But 50% across all his/her cards. That is what makes the difference. So example. I have 100k in limits. But use 50k of that. Risk becomes higher. Not for a single big purchase.

Re: account closure

NRB525 — Sat, 16 May 2015 14:37:55 GMT

@Anonymous wrote:
Turns out chase closed my freedom card due to my overall utilization and utilization with them. I'm taking advantage of low rates and still paying a few things off so its understandable. Never late but utilization with them is around 40% and overall total around 50%. The good part is that they sent a letter stating I can keep the low rate until its paid off as long as I make the payment each month. Also, my online account shows it closed but they kept the available credit intact so hopefully they will report it with that available for utilization purposes. I'm not sure how it works with a closed account though.

Not my first choice to have it closed but they were very fair about it and I wont be burning them in the process so once things change I can get another card with them later on.

Sorry to hear about the account closure. I had several accounts closed after the credit crisis, by Chase and Citi, due to overall high balances, along with balance chasing CLD. My Freedom card was CLD to the current $1,500 a few years ago, but not closed completely.

Can you list out your accounts, their balances, CL, and what your payment rate is on those balances? Percentages are interesting, but at the end of the day the banks care about the absolute dollars they are owed.

Re: account closure

Anonymous — Sat, 16 May 2015 14:39:55 GMT

The 1% answer is not always the solution for everyone.

It is impractical and a waste of credit.

Re: account closure

pizza1 — Sat, 16 May 2015 14:43:32 GMT

@Anonymous wrote:
The 1% answer is not always the solution for everyone.

It is impractical and a waste of credit.

maybe so Nix..works for me though, at least for the next few years until my BK becomes more aged.

Re: account closure

Anonymous — Sat, 16 May 2015 14:45:53 GMT

@Anonymous wrote:
The 1% answer is not always the solution for everyone.

It is impractical and a waste of credit.

Maybe, but that's far apart from 50%, especially if it's for an extended period of time.

Re: account closure

Anonymous — Sat, 16 May 2015 17:01:25 GMT

I always pay my balances as soon as they post. It doesn't work for everyone but it works for me. Also helps me keep track of how much money I really do have.

Re: account closure

CreditCuriosity — Sat, 16 May 2015 17:39:26 GMT

@Anonymous wrote:
I always pay my balances as soon as they post. It doesn't work for everyone but it works for me. Also helps me keep track of how much money I really do have.

^+1 That way I don't spend money I don't have.. Just works out better for me personally.

Best of luck OP on getting your account re-opened

Re: account closure

Anonymous — Sat, 16 May 2015 17:52:34 GMT

Personally if I was gonna turn around and pay for things immediately I'd at least attempt to negotiate a cash discount every time

Re: account closure

Anonymous — Sat, 16 May 2015 17:57:23 GMT

@Anonymous wrote:
Personally if I was gonna turn around and pay for things immediately I'd at least attempt to negotiate a cash discount every time

Huh? I don't understand how paying a credit card balance off immediately is the same as paying cash.

Re: account closure

Anonymous — Sat, 16 May 2015 18:02:31 GMT

You give up the grace period.

Might as well negotiate a bigger discount.

Re: account closure

Anonymous — Sat, 16 May 2015 18:05:19 GMT

@Anonymous wrote:
You give up the grace period.

Might as well negotiate a bigger discount.

Retailer isn't going to care. Still a charge to them. Not the same as cash.

Re: account closure

Anonymous — Sat, 16 May 2015 18:08:10 GMT

Some will. This is where I can make my bones.

Until then I will enjoy my 21-30 days of interest free bank float.

Re: account closure

CreditCuriosity — Sat, 16 May 2015 18:14:40 GMT

Agree retailer won't care as they still got to eat the swipe fee..

Anyways, whatever work for you or me or others than utilize it how you need credit as that is what it is there for.. Not saying I will never float a balance after it posts, just prefer not to since I messed up my credit awhile ago balances make me cringe and just got in a habit or hitting PAY when I see it posts unless it is under <20ish dollars that it doesn't bug me as much unless the statement is about to close then it has to be gone other than 1 card obviously

Side question: Way of subject here, but have Nixon and Irish here so figure you guys probably both no this.. Does a Personal loan from say a CU is that counted as an installment loan? Meaning Utilization won't be a factor? Gotta decide whether to use Care Credit or personal loan coming up on something or a bit of both, but think a personal loan (hopefully an installment loan) won't set off alarm bells as loud as say a CC @ 80% of utilization?

Re: account closure

Anonymous — Sat, 16 May 2015 18:17:24 GMT

Long as it ain't a revolving line of credit you should be good.