topic Re: Chase Cards - How Far Can You Go Before Shutdown? in Credit Cards

Chase Cards - How Far Can You Go Before Shutdown?

Anonymous — Sun, 02 Feb 2020 04:31:23 GMT

Currently have six Chase cards since 2016: Sapphire Reserve, Freedom, Freedom Unlimited, Amazon, Ink Cash, and Ink Unlimited with a total CL of about $45k. I've lowered most of the CLs to stay under half my income and am 4/24 with another slot opening in May. I heard about Chase shutdowns a few years ago when people opened too many cards too soon and I get the feeling that I'm about to reach my limit with Chase even being under 5/24. Just looking to see what everyone elses experience with Chase has been when it comes to card numbers and credit limits.

Re: Chase Cards - How Far Can You Go Before Shutdown?

FinStar — Sun, 02 Feb 2020 04:42:39 GMT

Hi and welcome to the forums @Anonymous.

Shutdowns still happen, but it's mostly due to some misteps in the process or individuals not being aware of the risks involved. IME, as long as you don't stick out like a sore thumb or draw attention, you'll be fine.

I currently have 11 CCs with them (personal and biz). So, they will approve as many that you can qualify for depending on your overall profile, income, existing relationship, etc. A variety of mine pre-date Chase through a variety of mergers.

But, given the 5/24 restrictions, which slowed down the roll for many folks, the only way that I've been able to obtain any new CCs is through pre-qualification offers.

Re: Chase Cards - How Far Can You Go Before Shutdown?

wasCB14 — Sun, 02 Feb 2020 04:51:26 GMT

5 cards since 2013: 2013 (first card, toy limit), 2015x3, 2018. The 4th and 5th cards brought me up to 50% of income (which grew between 2015 and 2018).

Re: Chase Cards - How Far Can You Go Before Shutdown?

Anonymous — Sun, 02 Feb 2020 06:45:04 GMT

Nice, 11 cards is pretty impressive. Planning to open up a SW card soon for the 75k SUB and then waiting a few months before using that final 5/24 slot.

Re: Chase Cards - How Far Can You Go Before Shutdown?

CreditInspired — Sun, 02 Feb 2020 13:21:29 GMT

@Anonymous wrote:
Currently have six Chase cards since 2016: Sapphire Reserve, Freedom, Freedom Unlimited, Amazon, Ink Cash, and Ink Unlimited with a total CL of about $45k. I've lowered most of the CLs to stay under half my income and am 4/24 with another slot opening in May. I heard about Chase shutdowns a few years ago when people opened too many cards too soon and I get the feeling that I'm about to reach my limit with Chase even being under 5/24. Just looking to see what everyone elses experience with Chase has been when it comes to card numbers and credit limits.

Hello and welcome

Just an off-topic question. Is your entire CC portfolio with Chase? If yes, IMHO, I think you should think about diversifying some. Just my 2cents.

Re: Chase Cards - How Far Can You Go Before Shutdown?

MyFault — Sun, 02 Feb 2020 16:00:16 GMT

I have 3 cards with Chase, which put me just about 50% of income. I'm now 6/24, so i'm dead to Chase until June 2021 .
I'm hoping to get all three ink cards after then.
My credit profile is below, and i didn't have any issues getting 6 new cards, 3 of those were Chase, within 7 months. I even got an auto CLI on my CSP after 3 months. I'm currently waiting to see if i get lucky with an auto CLI on my CFU around March/April.

YMMV with Chase. It will depend on your profile, age of accounts, credit score, spending, and more. Be responsible, pay your cards on time, and in full, and don't run up your utilization, and you should be fine. Credit and applying for cards is a marathon, not a sprint.

Re: Chase Cards - How Far Can You Go Before Shutdown?

sjt — Sun, 02 Feb 2020 20:28:58 GMT

In addition to too many new accounts, unusual activity, etc. They also review for raising debt, lates, or other negatives CR entries.

Re: Chase Cards - How Far Can You Go Before Shutdown?

Anonymous — Mon, 03 Feb 2020 01:42:14 GMT

@FinStar wrote:
I currently have 11 CCs with them (personal and biz). So, they will approve as many that you can qualify for depending on your overall profile, income, existing relationship, etc. A variety of mine pre-date Chase through a variety of mergers.

That's almost my totality of open accounts accross several lenders! lol

Although I guess having that many with one lender would be easy to manage.

Re: Chase Cards - How Far Can You Go Before Shutdown?

Anonymous — Sat, 08 Feb 2020 21:54:48 GMT

I also have a few Amex cards, a couple from USAA, and a handful of 'other' cards that are at the bottom of the sock drawer. Just got into Chase this past year.

Re: Chase Cards - How Far Can You Go Before Shutdown?

sunkissed — Sat, 08 Feb 2020 22:35:20 GMT

I was wondering the same thing. Chase applications have slowed significantly since the 5/24 policy. I know there are folks in the community that have more than a few Chase cards. I remember the posts from those who were shutdown for applying for one too many. If I had to guess, I'd assume that the people who add Chase cards slowly fare better than the ones who try to ramp up too quickly.

I currently have 5 personal and 1 business.

Sapphire Reserve, upgraded from CSP Aug 2016 (CSP opened Sep 2013)

Marriot Bonvoy, opened Nov 2013

Freedom Unlimited, changed from Freedom Sep 2019 (Freedom opened Jun 2014)

Amazon, opened Feb 2017

SW Priority, opened Jan 2019

SW Performance Business, opened Aug 2019

Re: Chase Cards - How Far Can You Go Before Shutdown?

Taurus22 — Sun, 09 Feb 2020 02:19:16 GMT

My question........what is this reference to (50% of your income) How does that affect your CC's? This is a new topic for me......

Re: Chase Cards - How Far Can You Go Before Shutdown?

wasCB14 — Sun, 09 Feb 2020 02:30:56 GMT

@Taurus22 wrote:
My question........what is this reference to (50% of your income) How does that affect your CC's? This is a new topic for me......

I'm not sure how business cards are counted, or how common exceptions are, but...

Chase limits total credit to many customers at 50% of that customer's income. So let's say you have:

$100k income

$25k CFU

$20k Freedom

Getting approved for a CSR may be difficult, since it requires a $10k SL, and $25k+$20k+$10k would be $55k...which is more than 50% of $100k.

So before applying for CSR, requesting a CLD of $5k or $10k on one of the cards may be a good idea.

Re: Chase Cards - How Far Can You Go Before Shutdown?

Taurus22 — Sun, 09 Feb 2020 02:41:22 GMT

Ah ok, so this is a Chase-specific restriction. Geez, like their 5/24 wasn't enough....Maybe this is why my gut has always told me to avoid Chase?

Re: Chase Cards - How Far Can You Go Before Shutdown?

wasCB14 — Sun, 09 Feb 2020 02:49:58 GMT

@Taurus22 wrote:
Ah ok, so this is a Chase-specific restriction. Geez, like their 5/24 wasn't enough....Maybe this is why my gut has always told me to avoid Chase?

Which lenders have extended you significantly more than 50%?

I'm above 50% with Amex, but they have their "backdoor FR" on me via Schwab.

Re: Chase Cards - How Far Can You Go Before Shutdown?

Taurus22 — Sun, 09 Feb 2020 03:11:21 GMT

@wasCB14 wrote:
@Taurus22 wrote:
Ah ok, so this is a Chase-specific restriction. Geez, like their 5/24 wasn't enough....Maybe this is why my gut has always told me to avoid Chase?
Which lenders have extended you significantly more than 50%?

I'm above 50% with Amex, but they have their "backdoor FR" on me via Schwab.

None actually. I've spread my accounts over multiple lenders so far, and my closest is 17% of income. I was just curious about the topic really.....I had never really heard of this until now, so it's good info to have.

Re: Chase Cards - How Far Can You Go Before Shutdown?

wasCB14 — Sun, 09 Feb 2020 04:09:13 GMT

@Taurus22 wrote:
@wasCB14 wrote:
@Taurus22 wrote:
Ah ok, so this is a Chase-specific restriction. Geez, like their 5/24 wasn't enough....Maybe this is why my gut has always told me to avoid Chase?
Which lenders have extended you significantly more than 50%?

I'm above 50% with Amex, but they have their "backdoor FR" on me via Schwab.
None actually. I've spread my accounts over multiple lenders so far, and my closest is 17% of income. I was just curious about the topic really.....I had never really heard of this until now, so it's good info to have.

Freedom, with its quarterly cap, will tend to get limited spend and only needs a moderate CL (unless someone is using a 0% promo).

Big CLs on CFU and CSR can be nice. Amazon, too, for some.

A lot of people who reach this 50% constraint and find it to be a problem have numerous travel cobrand cards.

Re: Chase Cards - How Far Can You Go Before Shutdown?

Revelate — Sun, 09 Feb 2020 20:35:32 GMT

My apologies for being contrarian by why does anyone need more than 50% of their income from a single lender? Especially talking Chase, other than the Slate you don't want to be carrying balances there with the APR's they have.

Yes, GET OFF MY LAWN!

I do have more than 50% of my stated income with Chase and actually is more than I have made multiple years that I have had them but I am not the norm... namely I run my financial life through Chase including my first mortgage so they know where I stand better than any other lender.

Re: Chase Cards - How Far Can You Go Before Shutdown?

Aim_High — Sun, 09 Feb 2020 21:14:39 GMT

@Anonymous wrote:
Currently have six Chase cards since 2016... Just looking to see what everyone elses experience with Chase has been when it comes to card numbers and credit limits.

I have six Chase cards. Five were added in the past two years. IMO, doing CLD to "improve your odds of approval" is completely unnecessary. If you have multiple cards and your profile supports a new card, they will approve it but reallocate existing credit limits to accomodate the new card. (That's what they did for me when I reached their internal limit after several cards.) And then they allow you to shuffle it back around afterward if you want, which I did.

My profile at the time, though, was thick multi-decades file with high 800+ scores, long relationship with Chase, and high income. YMMV.

I agree that they will keep approving cards, epecially if you're ading the cobranded AF cards too. Sometimes I think their goal is for you to have one of all their cards. Lol

As for AA, I think it's probably very profile-dependent and is not just about how many Chase cards you're opening. It depends on your overall credit-seeking, debt load, income, payment history, credit scores, etc. There's a lot of factors, but as long as you're not making huge changes in your profile at one time or from the time you were accepted for your last card, you'll be fine. I applied as soon as 3-4 months between cards when I added those five cards and they didn't blink.

Re: Chase Cards - How Far Can You Go Before Shutdown?

Aim_High — Sun, 09 Feb 2020 22:01:16 GMT

@wasCB14 wrote:
@Taurus22 wrote:
My question........what is this reference to (50% of your income) How does that affect your CC's? This is a new topic for me......
Chase limits total credit to many customers at 50% of that customer's income.

I had a slightly different experience, even with a very high credit score, high six-figure income, and long history with Chase. I didn't get all the way up to 50% of income.

Still, they are my highest lender at over $138K total, but on my last card approval in my recent spree with them (five new cards over 18 months), they reallocated some credit lines because I had reached an internal limit. And by the way, I don't bank with them or they might have gone even higher with me. I was a little puzzled at where they stopped my limits. It just seemed an odd number. Then, doing some further calculations, I think I hit on it. Basically, it appears debt payments were subtracted, to include my annual payments due on mortgage, car loans, and fixed payments. And they only went up to 40% of my remaining income after debt, not 50%.

So the formula in my case was approximately:

Total Stated Annual Income

(less) Total Annual Debt Payments

(times) 0.40%

= Total Credit Limit

Re: Chase Cards - How Far Can You Go Before Shutdown?

Aim_High — Sun, 09 Feb 2020 22:00:07 GMT

@Taurus22 wrote:
Ah ok, so this is a Chase-specific restriction. Geez, like their 5/24 wasn't enough....Maybe this is why my gut has always told me to avoid Chase?

No, this is not "Chase-specific" by any means! You can bet that every lender who reviews your application for credit has underwriting standards that you have to meet regarding your total debt load and income to pay it off or take on new debt. As with any underwriting standard, some are more conservative than others. At about 50% of income, Chase is fairly standard. Sure, there are exceptions, but 50% of income with a single bank is a pretty generous limit, IMO. Many will go much lower than 50%, and frankly I can't blame them. Accepting more risk of default with a single consumer works against the majority of cardholders in terms of the credit terms and rewards programs a lender can afford to support.

I concur with @Revelate who wrote:

My apologies for being contrarian but why does anyone need more than 50% of their income from a single lender?

>>>>>>>>>>>>>>>>>>>

*RE: 5/24: Chase's 5/24 is not unique either! It's just well-known and quantified because they are a very larger lender who issues a lot of cards, and therefore we have a lot of data points to quantify how far you can go with them. They don't publish that policy; it's internal. Other banks have similar internal policies, you can be sure. We just don't know exactly what they are due to lack of data points. Instead, some smaller lenders just become known as "new account sensitive" or "inquiry sensitive."