topic Chase Freedom over the limit in Credit Cards

Chase Freedom over the limit

Anonymous — Sun, 27 Sep 2015 05:17:41 GMT

I was making a large purchase of 26k, which I had a plan to pay off in full over the next 12 months, but over the next 3-6 months I would not be able to make more than a minimum payment. So I preferred to get a new 0% 12-15 month intro offer card, which seemed to be the best solution for me.

I applied for Chase Freedom, with a 646 TU, currently 30% utilzation. I was approved for $3200 online. I then applied for a Chase Southwest rewards card, and was approved for $8500.

I called in to Chase, and merged my available $8500 on the southwest card onto my Freedom card, all within the same day of applying. So now I had a $11,700 limit Freedom card.

I have heard about Chase Freedom's "credit access line" and allowing customers to potentially go over their limit. So, I tried the following which worked:

I had the vendor run 8k, 8k 2 transactions, both of which were approved. A third 8k transaction declined. I then had them run a 4k, 4k set of transactions, both of which were approved. This made a total of 24k. The third 4k transaction declined. We then ran another 1k, 1k set which completed 26k. These were approved. So, 26k was run in total on the card.

I called Chase and verified that all of this was still within the 0% Intro offer for 15 months, and the 1% cash back rewards. They confirmed. I also confirmed that the account would be subject to Chase's standard 1% minimum payment. About 2 weeks alter, I received a letter in the mail that the Freedom account was closed, due to RAPID CREDIT USAGE. I called in, and again confirmed that the 0% intro offer was in place, the 1% cash back was in fact credited. So I didn't worry about it.

I checked creditkarma within the next couple weeks, which reported that I had a 11,700 credit line, utilized at 11,700. All of this took place over the past month.

So my question is, now that this is said and done, are there any negative aspects to what I did? The bottom line is, what I initially set out to do was accomplished.

Re: Chase Freedom over the limit

B335is — Sun, 27 Sep 2015 06:43:01 GMT

You'll see your score take a significant hit. It sounds like you have a plan, but other lenders may take AA if that reports too long.

Re: Chase Freedom over the limit

Anonymous — Sun, 27 Sep 2015 06:46:34 GMT

Agree with the above. Its good that you have a plan but this part below might present a problem. Making only minimum payments for months may set off alarms but hopefully not.

over the next 3-6 months I would not be able to make more than a minimum payment.

Re: Chase Freedom over the limit

toi34 — Sun, 27 Sep 2015 07:00:38 GMT

@Anonymous wrote:
I was making a large purchase of 26k, which I had a plan to pay off in full over the next 12 months, but over the next 3-6 months I would not be able to make more than a minimum payment. So I preferred to get a new 0% 12-15 month intro offer card, which seemed to be the best solution for me.

I applied for Chase Freedom, with a 646 TU, currently 30% utilzation. I was approved for $3200 online. I then applied for a Chase Southwest rewards card, and was approved for $8500.

I called in to Chase, and merged my available $8500 on the southwest card onto my Freedom card, all within the same day of applying. So now I had a $11,700 limit Freedom card.

I have heard about Chase Freedom's "credit access line" and allowing customers to potentially go over their limit. So, I tried the following which worked:

I had the vendor run 8k, 8k 2 transactions, both of which were approved. A third 8k transaction declined. I then had them run a 4k, 4k set of transactions, both of which were approved. This made a total of 24k. The third 4k transaction declined. We then ran another 1k, 1k set which completed 26k. These were approved. So, 26k was run in total on the card.

I called Chase and verified that all of this was still within the 0% Intro offer for 15 months, and the 1% cash back rewards. They confirmed. I also confirmed that the account would be subject to Chase's standard 1% minimum payment. About 2 weeks alter, I received a letter in the mail that the Freedom account was closed, due to RAPID CREDIT USAGE. I called in, and again confirmed that the 0% intro offer was in place, the 1% cash back was in fact credited. So I didn't worry about it.

I checked creditkarma within the next couple weeks, which reported that I had a 11,700 credit line, utilized at 11,700. All of this took place over the past month.

So my question is, now that this is said and done, are there any negative aspects to what I did? The bottom line is, what I initially set out to do was accomplished.

Damn.....LMAO!!!!! ...working the system! I LUV Myfico forums!!!!

Re: Chase Freedom over the limit

PDXoriginal — Sun, 27 Sep 2015 07:05:41 GMT

You completely mis-understood how NPSL of Visa Signature works. Any balance over your limit was supposed to be PAID IN FULL after statement cut, you're not supposed to carry a balance over your limit for a long duration. I wouldn't be surprised if Chase takes more adverse action against you.

Re: Chase Freedom over the limit

Anonymous — Sun, 27 Sep 2015 07:09:51 GMT

PDX thank you for that summary. Im not familiar with going over the limit on cards, never thought to do so with any of my flexible spending accounts. But if thats how it works this wasnt a very good plan.

Re: Chase Freedom over the limit

Anonymous — Sun, 27 Sep 2015 07:11:08 GMT

this can turn out good

15k at 18%

Re: Chase Freedom over the limit

OmarGB9 — Sun, 27 Sep 2015 07:12:21 GMT

I'm not sure what exactly it is you accomplished OP, besides getting your account shut down and possibly putting yourself under a microscope with Chase as well as other lenders potentially.

Re: Chase Freedom over the limit

CreditMagic7 — Sun, 27 Sep 2015 07:12:28 GMT

OUCH!!

It's a matter of damage control now.

I would make efforts to take some corrective measures whatever you can as soon as you can ASAP if possible.

Re: Chase Freedom over the limit

Anonymous — Sun, 27 Sep 2015 07:17:25 GMT

Question. Since the account was shut down does that void the 0% APR? What I mean is will the OP end up having to pay the regular interest rate on the entire amount immediately?
Hope I asked that correctly, still learning around here!

Re: Chase Freedom over the limit

PDXoriginal — Sun, 27 Sep 2015 07:37:19 GMT

Essentially any balance over the limit becomes the minimum payment. As with most card agreements, if you do not make the minimum payment you default, could lose any promotional rate and be hit with a penalty APR.

Per the Chase Freedom Card Member Agreement...

Default: Your account will be in default if: 1) You do not pay at least the minimum payment when due;... If your account is in default, we may close it without notice and require you to pay your unpaid balance immediately. We can also begin collection activities

Payment: You agree to pay at least the minimum payment when due. You also agree to pay amounts in excess of your credit access line when billed to your monthly statements or sooner if we ask.

---

Regardless of what the chase rep might have told the OP, the OP is heading towards a world of financial hurt.

Re: Chase Freedom over the limit

noobody — Sun, 27 Sep 2015 07:43:39 GMT

Anything over 11.7K plus 1% of 11.7k which grand total of $14,417 will be due ~25 days after statement is cut. If you thought minimum due is $260, and that's all you can afford for several month you are in big trouble.

Re: Chase Freedom over the limit

Anonymous — Sun, 27 Sep 2015 12:14:21 GMT

Not good.

Re: Chase Freedom over the limit

Anonymous — Sun, 27 Sep 2015 12:36:14 GMT

Wow! Lenny! You killed your rabbit!

Re: Chase Freedom over the limit

lord_kinbote — Sun, 27 Sep 2015 12:40:00 GMT

@OP I can't believe no one has asked; so what did you buy for 26k on a credit card?!

Re: Chase Freedom over the limit

Anonymous — Sun, 27 Sep 2015 13:05:07 GMT

Penalty APR for Freedom is 29.99% Ask me how I know.

On second thought...don't.

Re: Chase Freedom over the limit

Anonymous — Sun, 27 Sep 2015 13:06:23 GMT

@Anonymous wrote:
Penalty APR for Freedom is 29.99% Ask me how I know.

On second thought...don't.

Too late. How?

Re: Chase Freedom over the limit

Anonymous — Sun, 27 Sep 2015 13:24:30 GMT

Short answer, because that's what I've got . Long not-all-that-satisfying answer is a mix of at/over the limit, min pays, and balance chasing several years ago. I just looked back at my old statements and I think my high limit was $14.7. It was chased down to $11, then $8, and finally $6600 where it sat for years and was still my (eventually) PIF daily driver for years at my highest limit (SimilR AA from Citi) . Felt good the other day taking the limit down to $1k to not see the $6600 reminder on there anymore, just as it was good to take a HP to get rid of the $4860 weird reminder limit with Citi.

If life me to think this was a desperate situation for the OP where an emergency wasn't anticipated. Not JUST an attemp to game the system for a 0%-shiny-new-widget.

Re: Chase Freedom over the limit

Anonymous — Sun, 27 Sep 2015 13:25:05 GMT

iPhone... I'd like to think...

Re: Chase Freedom over the limit

gdale6 — Sun, 27 Sep 2015 14:26:00 GMT

I have removed one post from this thread for being nonFSR and violating the TOS, I want to remind everyone that all posting must be done in a respectible manner, I thank you for your understanding on this.

http://ficoforums.myfico.com/t5/Credit-Cards/Forum-Etiquette/td-p/2905196

gdale6

myFico Moderator

OP: Welcome to the board