topic Re: Chase AA in Credit Cards

Chase AA

JSS3 — Sat, 06 Jan 2018 16:42:10 GMT

Chase closed all 5 of my brother's credit cards accounts. He's waiting on the letter, but I'm pretty positive it's for "Excessive credit seeking". He applied for two Chase credit cards recently. The first card(Disney) in late December which went from a 30 day message to 2 weeks. The second(Hyatt)in early Jan. It went from 30 days to 7-10.

His chase accounts were as follows:

Slate -1,500 (2yrs 11 Months)
Freedom- 4,000 (2yrs 4 Months)
Freedom Unlimited 1,000 (1yr 11 Months)
Amazon-1,500 (11 Months)
AARP- 4,000 (5 months)

He just paid off the one balance of $7. All are now closed with a zero balance.

He does have a chase checking account. That account DOES NOT say, "This account is closed" when you click on it.

His overall utilization accross 25 cards is 10% (Roughly 16,000 credit debt)

Can he call and apologize and get his accounts back? Will his checking be closed too?

Re: Chase AA

Anonymous — Sat, 06 Jan 2018 15:05:13 GMT

Yep, this happens to folks, especially when apping for certain premium cobranded cards I believe (Ritz Carlton especially). You didn't list what cards he has, so I would suggest updating that list with card names/brands.

Other threads over the years, but there are many more if you search "chase closed all" here:

Chance of getting them reopened is close to zero. It's possible they may lose his checking account later but that's a different department -- but I do believe they do rely on and share the same Chase risk score internally.

Re: Chase AA

Gmood1 — Sat, 06 Jan 2018 15:25:18 GMT

I know the AA scared folks like to jump on the credit seeking bandwagon around here. But, there are many other things that can make Chase close accounts. Visa is having a war with the crypto currency thing lately.
That will get your accounts shut down in a hot second!
A fraud alert will make them freeze the accounts not close them.

Your brother didn't have a huge exposure with them.
I'd tell him to move in to greener pastures. Chase isn't the only show in town..thank goodness. lol

Re: Chase AA

Anonymous — Sat, 06 Jan 2018 15:27:31 GMT

@Gmood1 wrote:
I know the AA scared folks like to jump on the credit seeking bandwagon around here. But, there are many other things that can make Chase close accounts. Visa is having a war with the crypto currency thing lately.
That will get your accounts shut down in a hot second!
A fraud alert will make them freeze the accounts not close them.

Yep -- I never buy crypto using a credit card, and I have a bank account that I solely use for crypto and that bank doesn't care whatsoever. Been using them since 2012, sometimes for 5 digit purchases or sales, and they never blink an eye. Chase, on the other hand, is a bank I wouldn't cross with my crypto at all. Just in case.

Re: Chase AA

Anonymous — Sat, 06 Jan 2018 15:31:13 GMT

You list that he has $16k in credit card debt? Not sure if you mean total credit lines. If it's debt, then the 10% UTI implies $160k in total credit lines across 25 cards. He must have a couple large cards then, since the Chase lines listed below aren't very big. What is his income? With the CL's they've given him, you can tell that they weren't really confident, which when combined with frequent inquiries might have spooked them. Was he recently carrying larger balances with Chase? Was he applying for credit outside of Chase as well?

Re: Chase AA

UpperNwGuy — Sat, 06 Jan 2018 15:39:41 GMT

As always, there has to be a reason. There is probably more to this story.

Re: Chase AA

JSS3 — Sat, 06 Jan 2018 15:40:32 GMT

@Anonymous wrote:
You list that he has $16k in credit card debt? Not sure if you mean total credit lines. If it's debt, then the 10% UTI implies $160k in total credit lines across 25 cards. He must have a couple large cards then, since the Chase lines listed below aren't very big. What is his income? With the CL's they've given him, you can tell that they weren't really confident, which when combined with frequent inquiries might have spooked them. Was he recently carrying larger balances with Chase? Was he applying for credit outside of Chase as well?

16,000 in credit card debt. None of the debt was on the 5 Chase accounts. He only owed 1 Chase account 7 dollars which he paid off before this happened. He really only uses the Chase Freedom with small purchases on the others to keep them active.

56,000 income

NO recent large balances with Chase.

His recent accounts OUTSIDE of chase were DSW Visa(8months) Barclays Uber(1month) and Paypal 2% Mastercard(0 month).

Re: Chase AA

JSS3 — Sat, 06 Jan 2018 15:44:30 GMT

@UpperNwGuy wrote:
As always, there has to be a reason. There is probably more to this story.

I will update the thread when he receives the letter. We work close together and I have access to his accounts. I got his started with credit. I was the one who told him to apply for new Chase cards to move the limits. I feel somewhat repsonsible. Luckily(or unfortunately depending on how you look at it) the only card that he liked was the Freedom. The Slate(with it's very low limit and no rewards) was only beneficial because of the free FICO. Amazon only gave 3% because he was not a Prime member.

Re: Chase AA

Gmood1 — Sat, 06 Jan 2018 15:44:45 GMT

The $16,000 could have spooked them. Especially if his reports shows him paying minimum payments regularly.

Re: Chase AA

JSS3 — Sat, 06 Jan 2018 15:48:39 GMT

@Gmood1 wrote:
The $16,000 could have spooked them. Especially if his reports shows him paying minimum payments regularly.

Never a minimum payment. He also didn't owe anything on his Chase accounts for them to see him only pay the minimum.

I know all the ins and outs because I got him started in credit. I have been advising him along the way. He gives me access to his accounts to pay and monitor them. He's the type to work and let me handle everything else. I know when he gets paid so I log in and pay them, as well as monitor, along with paying my own.

Re: Chase AA

Gmood1 — Sat, 06 Jan 2018 15:53:14 GMT

They don't have to be on his Chase accounts. If his other lenders report to TU and EX. It's easy for them to pull up and look for patterns. Especially if those lenders report in detail. The current balance, minimum payment needed, actual payment and remaining balance.

Re: Chase AA

Credit-hoarder — Sun, 07 Jan 2018 02:30:56 GMT

His total exposure across 5 cards was only $12K ($500 more than mine across 3 cards) and more than likely those were going to be his limits and long as he had those cards b/c CLIs are very rare with Chase---so I say good riddance. If his total exposure was say $60K or more with those 5 cards that would be a different story IMO. That's 5 more slots he can fill in due time with better lenders who WILL possibly give him better CLs.

Re: Chase AA

bourgogne — Sun, 07 Jan 2018 02:59:30 GMT

$16K across 25 cards and income is $56K? if yes his chase accounts are history and he will not get them back. chase likes clean, they don't like games and exposure. imo.

Re: Chase AA

Anonymous — Sun, 07 Jan 2018 03:03:22 GMT

What do you mean by Chase likes clean and doesn't like games?

Re: Chase AA

bourgogne — Sun, 07 Jan 2018 03:11:02 GMT

@Anonymous wrote:
What do you mean by Chase likes clean and doesn't like games?

25 cards is a game, plain and simple. 16/56 debt to income. everything in credit is risk. you know all this, I think we all do. not judging but collecting cards or credit limits seem a bit boring to me vs getting some actual utility out of the situation. again just my .02.

Re: Chase AA

BurgeoningHope — Sun, 07 Jan 2018 03:20:40 GMT

They seem to like people like my mother and my sister. "Real" people. A couple of majors, a couple of store cards, occasionally something kind of dedicated, like the Amex/Visa/MC for a warehouse store, and maybe a gas card. They pay their balances when they get their bills, and seldom carry a balance. Chase is rumored to like their card/s to be near the front of the wallet. They like relationships.

Like good BBQ, low and slow.

To the OP: I have more new accounts than I think they'd really like, but that includes AUs - not sure how they count that. FWIW, I'm working with an income 3x your brother's, with total outstanding debt 1/10 of his, and number of cards 1/4 of his (again, depending on how you count AUs - could be fewer).

It may be worth making an appointment at a branch and talking to a human, face-to-face, and ask if they'd help you guys create an action plan for getting back in their good graces.

Re: Chase AA

SouthJamaica — Sun, 07 Jan 2018 03:33:48 GMT

@bourgogne wrote:
@Anonymous wrote:
What do you mean by Chase likes clean and doesn't like games?

25 cards is a game, plain and simple. 16/56 debt to income. everything in credit is risk. you know all this, I think we all do. not judging but collecting cards or credit limits seem a bit boring to me vs getting some actual utility out of the situation. again just my .02.

You say that the OP's brother was playing a game by having 25 credit cards, and that it's boring, and that he wasn't getting utility out of the cards... but you're not judging?

Re: Chase AA

Anonymous — Sun, 07 Jan 2018 04:04:42 GMT

@bourgogne wrote:
@Anonymous wrote:
What do you mean by Chase likes clean and doesn't like games?

25 cards is a game, plain and simple. 16/56 debt to income. everything in credit is risk. you know all this, I think we all do. not judging but collecting cards or credit limits seem a bit boring to me vs getting some actual utility out of the situation. again just my .02.

I would not say 25 cards is a game everyone is different.

As far as owing 16k with 56k income I imagine that is pretty good compared to the national average. Perhaps the OP has financed a large useful purchase.

I am sorry to hear about your brother OP, Chase does seem to be picky

Re: Chase AA

NRB525 — Sun, 07 Jan 2018 04:10:02 GMT

Sorry to hear this happened OP. Through mergers Chase ended up with several of my CC, with balances, from other banks. I think I had four in Chase at one time. They closed one, I closed one in 2014, and that left me with two. I carefully got Marriott and Hyatt in Dec 2014, Jan 2015 but I was leery and havent asked for anything since. The proximate cause of my AA was high balances.

Hopefully the Freedom can be salvaged, and longer term your brother is able to get something useful.

AA is not the end of the world, but it is nerve wracking until you go a few months past it.

Re: Chase AA

Anonymous — Sun, 07 Jan 2018 15:38:10 GMT

This is starting to make a little more sense to me. Remember, Chase can see the entire report. They're concern doesn't end with only their accounts. They can track credit limits, balances, monthly balance changes(payments vs new charges), inquiries, new accounts. They see everything you can see on myFICO, actually even more.

$16k debt

$160k TCL

$56k income

25 cards

Recently seeking more credit

I mean, could be a lot worse, but you can't claim they had no cause for concern.

Did he have any other debt? House? Car? Or other non-revolving accounts?

I'm sorry that this happened to him. Has to really suck after the holidays.