topic Re: Chase CCs in Credit Cards

Chase CCs

Anonymous — Wed, 27 Mar 2013 21:15:57 GMT

Some one has told me that chae does not like it when you run up a card to near the limit then pay it before the statement cycle is over (multiple times). Has any one had any experience with this? Has a car ever mentioned this to you as being a problem? I have a low CL on my chase card and this is my only solution at the moment.

Re: Chase CCs

BrokaToe — Wed, 27 Mar 2013 21:18:06 GMT

Interesting question, I'm kind of in the same position. My limit is only $500 and I've charged up a few hundred this month and have already made a couple of payments and have another one to go this month. I'll let about $20 report, then PIF. But I would also like to read an answer on this one.

Re: Chase CCs

Epcot — Wed, 27 Mar 2013 21:27:02 GMT

I have done it several times on my chase card, sometimes a couple times a month. (When replacing the roof on our home) and no issues so far.

Re: Chase CCs

CreditScholar — Thu, 28 Mar 2013 03:21:30 GMT

@Epcot wrote:
I have done it several times on my chase card, sometimes a couple times a month. (When replacing the roof on our home) and no issues so far.

+1. Once a year I have to call up and ask for a 30k charge to be let through, even though my CL is only 25k.

I charge it, pay it off following day, and the continued charging as normal (15-20k is normal for December). No issues here.

Re: Chase CCs

scenery_guy — Thu, 28 Mar 2013 03:46:21 GMT

@Anonymous wrote:
Some one has told me that chae does not like it when you run up a card to near the limit then pay it before the statement cycle is over (multiple times). Has any one had any experience with this? Has a car ever mentioned this to you as being a problem? I have a low CL on my chase card and this is my only solution at the moment.

It's all good. Charge, pay off and do it again same month. Might not help get the limit raised now but it will help you in the future with Chase. Years ago I had two lower limit Chase cards I used for traveling and sometimes had to pay both of them a couple times a month or more. I had the cash and could have put the items on a debit card but I was stubborn and worked my low limit cards. Years later I have graduated to some higher limit Chase cards. I called to recon one of the latest and the CSR actually mentioned my still open low limit cards and how my history was very good on them (almost always PIF and very heavy usage). I ended up getting the card on recon and closed my old cards just for housekeeping. The CSR assured me no impact on closing the never used cards and that the history of them would be there in the future if needed.

Re: Chase CCs

Anonymous — Thu, 28 Mar 2013 03:51:30 GMT

no i have i have NP with chase. when i transfer limit to new chase card and keep 500 on older card. i used for couple month, i ran too 4xx and paid it next day i did couple times like that in 1 months. and called UW request for to 6K CL. they approved it

Re: Chase CCs

Anonymous — Thu, 28 Mar 2013 04:10:12 GMT

@Anonymous wrote:
Some one has told me that chae does not like it when you run up a card to near the limit then pay it before the statement cycle is over (multiple times). Has any one had any experience with this? Has a car ever mentioned this to you as being a problem? I have a low CL on my chase card and this is my only solution at the moment.

not true at all, at least for me.

my chase amazon visa used to have 2000 CL.

I was charging over 4.8k each month on it by paying in full a few times during a 30 day period.

No issues whatsoever.

Re: Chase CCs

solxp — Thu, 28 Mar 2013 04:14:51 GMT

@Anonymous wrote:
Some one has told me that chae does not like it when you run up a card to near the limit then pay it before the statement cycle is over (multiple times). Has any one had any experience with this? Has a car ever mentioned this to you as being a problem? I have a low CL on my chase card and this is my only solution at the moment.

Banks make money on every transaction you make when you use their cards. Paying off your balance and then charging more to the card several times a month only makes Chase more money. What possible reason would they have to be upset over making more money off your usage. Furthermore later on down the road if you initiate a CLI request your got the PERFECT explanation when asked why your requesting one. Just tell them "A quick glance at my history should show you that my current level of monthly spending exceed my credit limit forcing me to micro manage the account and make multiple payments. The current Credit Limit is not sufficient to meet my needs and I need the increase to meet my needs and allow me to make single large payments each month instead of payments each week simply to be able to make everyday purchases. If you can not meet my needs I will be forced to look elsewhere as I currently can not even use the card to make some transactions because the single purchase would exceed my total limit. " or some minor variation of that. I would bet at the 6 month mark if you have no issues that would raise a red flag you would easily be able to get a 2-4x increase from your current 500.00 limit. Banks like to make money it and if you got 6 months to a year of spending and payment history to back up your ability to easily pay more then your 500.00 limit they are probably going to fall over themselves to give you a higher limit allowing them to make more money from your account from swipe fees.

I just had a conversation with Capital Ones EO office, I said to the lady when we were discussing waiving my annual fee on my Ventura rewards that I realize they did not make much money from me on apr fee since I pif every month before statement cuts if I used the card that month most times with in a day or two of making the purchase and She told me that they prefer people doing that as its shows less risk and good credit management and they are happy just from the transaction fees they make off people. She did waive my fee for this year but could not remove it but told me just to contact them again in a years time and they would waive it again most likely. I rarely use the card anyway which is why I was unwilling to pay a annual fee and the lack of consistent monthly usage on it may have been why they did not permanently waive the fee which I have heard they have done for some people not sure if it was on the Ventura Rewards card though.

Re: Chase CCs

webhopper — Thu, 28 Mar 2013 04:15:04 GMT

@Anonymous wrote:
@Anonymous wrote:
Some one has told me that chae does not like it when you run up a card to near the limit then pay it before the statement cycle is over (multiple times). Has any one had any experience with this? Has a car ever mentioned this to you as being a problem? I have a low CL on my chase card and this is my only solution at the moment.
not true at all, at least for me.

my chase amazon visa used to have 2000 CL.
I was charging over 4.8k each month on it by paying in full a few times during a 30 day period.
No issues whatsoever.

A little off topic but how long had you had the amazon before getting your CLI? Was it auto or customer initiated? Hp? ive had mine for a year now and am wondering what to expect with them.

Re: Chase CCs

Anonymous — Thu, 28 Mar 2013 04:26:43 GMT

@webhopper wrote:
@Anonymous wrote:
@Anonymous wrote:
Some one has told me that chae does not like it when you run up a card to near the limit then pay it before the statement cycle is over (multiple times). Has any one had any experience with this? Has a car ever mentioned this to you as being a problem? I have a low CL on my chase card and this is my only solution at the moment.
not true at all, at least for me.

my chase amazon visa used to have 2000 CL.
I was charging over 4.8k each month on it by paying in full a few times during a 30 day period.
No issues whatsoever.

A little off topic but how long had you had the amazon before getting your CLI? Was it auto or customer initiated? Hp? ive had mine for a year now and am wondering what to expect with them.

I have had the Amazon Visa for 9 years, no CLI! So I guess YMMV.

Re: Chase CCs

FocusedAndDetermined — Thu, 28 Mar 2013 12:03:58 GMT

I do it on a regular basis, and have never had an issue.

Yes, the bank makes more money from those that carry a balance because of the APR, but the are still collecting merchant fees for each transaction you put through. If you're not going to carry a balance it makes no difference, if you PIF before or after statement cuts; Chase will collect the same fees. On the other hand, you don't want your statement to close with high utilization. So while the outcome is the same for the bank, it can be bad for you to "max out" your card, even if only for one cycle.

Re: Chase CCs

Open123 — Thu, 28 Mar 2013 14:21:11 GMT

@Anonymous wrote:
Some one has told me that chae does not like it when you run up a card to near the limit then pay it before the statement cycle is over (multiple times). Has any one had any experience with this? Has a car ever mentioned this to you as being a problem? I have a low CL on my chase card and this is my only solution at the moment.

The reason some lenders may frown on this is it seems as if you're circumventing the CL they've set.

The $500 CL Chase issued is the limit they feel comfortable with extending monthly based on the information they reviewed. If a person were to charge $499, then PIF and charge $499 again repeatedly (10 times), their exposure would be $5,000, which is 10 times more than the limit they've seen prudent to set.

If their systems trip this as potential fraud, then you're account will likely be closed. From Chase's perspective, if they've issued a $500 CL only (even if erroneously), artificially raising and circumventing the CL is seen as risky and outlier behavior. Now, if all things are in order (great CR and huge direct deposits with obvious source) no AA will occur.

In general, all things being equal, I'd much rather do this with Cap One and other lenders. If I can, I'd avoid this circumventing of the CL repeatedly with Amex and Chase. They don't like it, at all.

Re: Chase CCs

boomhower — Thu, 28 Mar 2013 16:40:28 GMT

@Open123 wrote:
@Anonymous wrote:
Some one has told me that chae does not like it when you run up a card to near the limit then pay it before the statement cycle is over (multiple times). Has any one had any experience with this? Has a car ever mentioned this to you as being a problem? I have a low CL on my chase card and this is my only solution at the moment.
The reason some lenders may frown on this is it seems as if you're circumventing the CL they've set.

The $500 CL Chase issued is the limit they feel comfortable with extending monthly based on the information they reviewed. If a person were to charge $499, then PIF and charge $499 again repeatedly (10 times), their exposure would be $5,000, which is 10 times more than the limit they've seen prudent to set.

If their systems trip this as potential fraud, then you're account will likely be closed. From Chase's perspective, if they've issued a $500 CL only (even if erroneously), artificially raising and circumventing the CL is seen as risky and outlier behavior. Now, if all things are in order (great CR and huge direct deposits with obvious source) no AA will occur.

In general, all things being equal, I'd much rather do this with Cap One and other lenders. If I can, I'd avoid this circumventing of the CL repeatedly with Amex and Chase. They don't like it, at all.

There exposure is never more than $500. The most the person can carry is $500. Once they pay what they charge it's reset. Unless the card is overcharged then the max exposure is still $500, they've just run $5k through it. They've got $5k worth of swipe fees, I can't see how this would upset them.

Re: Chase CCs

solxp — Thu, 28 Mar 2013 23:51:04 GMT

@Open123 wrote:
@Anonymous wrote:
Some one has told me that chae does not like it when you run up a card to near the limit then pay it before the statement cycle is over (multiple times). Has any one had any experience with this? Has a car ever mentioned this to you as being a problem? I have a low CL on my chase card and this is my only solution at the moment.
The reason some lenders may frown on this is it seems as if you're circumventing the CL they've set.

The $500 CL Chase issued is the limit they feel comfortable with extending monthly based on the information they reviewed. If a person were to charge $499, then PIF and charge $499 again repeatedly (10 times), their exposure would be $5,000, which is 10 times more than the limit they've seen prudent to set.

If their systems trip this as potential fraud, then you're account will likely be closed. From Chase's perspective, if they've issued a $500 CL only (even if erroneously), artificially raising and circumventing the CL is seen as risky and outlier behavior. Now, if all things are in order (great CR and huge direct deposits with obvious source) no AA will occur.

In general, all things being equal, I'd much rather do this with Cap One and other lenders. If I can, I'd avoid this circumventing of the CL repeatedly with Amex and Chase. They don't like it, at all.

I do not understand this line of thinking. In no way are you cirumventing your CL by paying it off multiple times and making more purchases in the same billing cycle. If they did not want you to do this they would not allow multiple payments per month. The more you spend the more they make. They could amend the terms in a heatbeat to read individual may not charge more in a 30 day period then thier stated credit limit. They dont do this and I dont see it ever happening. Making multiple payments during a month does not aritifically raise your CL ever your credit limit is what it is.

I am sure many of us have made a mistake paying a CC bill at somepoint and overpaid. Just last month I though I charged something to my Vikings card and it was instead on my escape I made the payment from my phone and sent it to Barclays. When it was recieved my account did not show I had a 10,149.00 CL it showed I had a 10,100.00 CL and a balance of -49.00. My credit limit was still 10,100 and even though I have a negative balance of 49.00 I can not make a purchase for 10,101 dollars it would be declined ( well tech it would have gone through on that card but I think the point i was making is clear). That woudl be an example of manipulating your Credit Limit and banks have safeguards in place to prevent it. I am pretty sure every single terms/agreements I have ever been sent for any of my card address that very issue. Does anyone really think the banks would do that and not address multiple payments in a month if they did not want or like it happening.

---edit removed a k lol i typed 10,149k cl im my dreams maybe ---

Re: Chase CCs

Open123 — Fri, 29 Mar 2013 02:30:50 GMT

@boomhower wrote:
@Open123 wrote:
@Anonymous wrote:
Some one has told me that chae does not like it when you run up a card to near the limit then pay it before the statement cycle is over (multiple times). Has any one had any experience with this? Has a car ever mentioned this to you as being a problem? I have a low CL on my chase card and this is my only solution at the moment.
The reason some lenders may frown on this is it seems as if you're circumventing the CL they've set.

The $500 CL Chase issued is the limit they feel comfortable with extending monthly based on the information they reviewed. If a person were to charge $499, then PIF and charge $499 again repeatedly (10 times), their exposure would be $5,000, which is 10 times more than the limit they've seen prudent to set.

If their systems trip this as potential fraud, then you're account will likely be closed. From Chase's perspective, if they've issued a $500 CL only (even if erroneously), artificially raising and circumventing the CL is seen as risky and outlier behavior. Now, if all things are in order (great CR and huge direct deposits with obvious source) no AA will occur.

In general, all things being equal, I'd much rather do this with Cap One and other lenders. If I can, I'd avoid this circumventing of the CL repeatedly with Amex and Chase. They don't like it, at all.
There exposure is never more than $500. The most the person can carry is $500. Once they pay what they charge it's reset. Unless the card is overcharged then the max exposure is still $500, they've just run $5k through it. They've got $5k worth of swipe fees, I can't see how this would upset them.

You're right, from the perspective of an honest person, this would not make sense and would not pose any concerns for Chase or any other lender.

What they are concerned about is potential deposit fraud. This could be in the form of check kiting, fake checks, payments from unauthorized accounts, potential NSF if account was paid from bad or insufficient check and all sorts of nefarious schemes creative fraudsters come up with.

Why does Cap One, Barclay, Orchard and other subprime lenders hold payments for at least 10 days? It is because individual's with certain credit profiles have a higher correlation with deposit fraud risk, hence the 10 day hold even if you pushed payment and the funds have fully withdrawn from your account.

For Chase $500 is their minimum while Amex's is $1,000. So, if a person is approved for $500 certainly doesn't mean he's dishonest, only that as far as Chase is concerned (rightly or wrongly), the person is subprime relative to the rest of their cardholders, and thereby in their estimation are a higher risk for fraud and non payment. Chase and Amex never hold payments, because in general their credt card holders don't warrant the extra precaution, while it does for Barclays, Cap One and many subprime lenders.

I'm not suggesting this *will* lead to AA, but only that with lenders such as Chase and Amex (whose avg CLs I'd imagine are $5K range), this sort of pay & charge repeatedly is associated with "outlier" behavior correlating to a higher risk of fraud.