@Anonymous wrote:
@Anonymous wrote:That's terrible that they could just cancel your card like that - no warning. No valid reason - you're never late. Scores may have dropped but to just outright cancel the account - scary. I will never apply for a Chase card. Makes me nervous that they could damage my credit like that for absolutely no reason.
@Anonymous There is no bank that I'm aware of that will give you warning before closing an account, except in instances where the account has not been used for a while. And they aren't legally obligated to do so either. If you had advance warning of a closing you could, for example, run up your balance to the maximum allowed and cause the bank to sustain a loss.
+1 ^ ^ ^
And @Anonymous , don't be afraid of Chase. You can get a closure or sudden credit line decrease with any lender for certain things. I think @FesteringTTT identified the cause when he talked about cycling his balance multiple times per month. Just use your cards normally and responsibly, don't run up huge balances (keep individual and overall utilizations low), pay on time or early.
@FesteringTTT wrote:
yeah, the best reason I could determine was "cycling." meaning, I had a 10k limit and had about 15k spend a month on it. So I would make multiple 4-6k payments in a cycle. apparently chase doesn't like that. seems dumb to me but I don't make the rules.
it did teach me to have more diversity of my lenders, so it was a good lesson to learn fairly early in life. before that, I had 3 cards with chase and the discover, that's it.
@FesteringTTT sorry about your Chase account closures.
That's a hard lesson to learn but yes, cycling balances can look suspicious. There are reasons for it.
For one, when you are approved for credit, banks look at your debts and income to determine your ability to repay and to determine your starting limit. So even if you're paying it off, there is a high spending rate (higher monthly debt) on the card above what they anticipated. There is increased risk with that. (For example, if you're spending $5K a month above your credit limit and if you were to run up all your cards the same way, you just exceeded their estimation of what a "safe" total credit usage is for you.) So you may repay the first time and then have to default after you run it up again because you overextended yourself.
You may be able to get away with cycling limits easier on much lower-limit cards or if you were to build up very slowly to a high level of spend-and-pay. When someone is new to credit, they might get a low-limit card like $1K even though their income supports more. The low limit is just because you may have a thin file and you haven't demonstrated payment history (i.e. responsibility) yet. In your case, however, the limits were higher and probably limited more by total revolving debt limits and income calculations, not just your credit score or history.
Moreover, banks have a fiduciary responsiblity to not participate in shady activities. In particular, if you are cycling balances and paying in excess of what your monthly income should normally support, it looks like you may be engaged in illegal activities or money laundering. Some businesses are set up as fronts for criminal activity and they may be able to process "credit card charges" as part of laundering illegal gains. And then there are practices like 'manufactured spending' that can lead to shutdown also.
As long as you stay in the mainstream with your spend-and-pay, you'll be fine. Just spend on normal expenses and pay off. If your limit is too low, give it time and it will probably grow if you continue to use a healthy part of out your limit (one time a month) and repay.
Hello everyone,
I just recently started following this thread because I just became a NFCU member. I didn't know I was eligible until not too long ago, so that was a nice surprise!
I went ahead and applied for the More Rewards AMEX and was approved for a $1K SL (it's a start). TU was pulled, my score is 676.
Does anyone know how long it takes for Navy to report your new credit card to the CRAs? I read the last 20 pages of this thread and didn't see anything. Appreciate the help. And thanks again to all of you lovely people on this forum! My credit journey has improved dramatically based on the information I have learned here.
@GoTarHeels wrote:Hello everyone,
I just recently started following this thread because I just became a NFCU member. I didn't know I was eligible until not too long ago, so that was a nice surprise!
I went ahead and applied for the More Rewards AMEX and was approved for a $1K SL (it's a start). TU was pulled, my score is 676.
Does anyone know how long it takes for Navy to report your new credit card to the CRAs? I read the last 20 pages of this thread and didn't see anything. Appreciate the help. And thanks again to all of you lovely people on this forum! My credit journey has improved dramatically based on the information I have learned here.
Usually after 2 statements/billing cycles. Congrats on your approval and welcome to the forums!
@thornback wrote:
@GoTarHeels wrote:Hello everyone,
I just recently started following this thread because I just became a NFCU member. I didn't know I was eligible until not too long ago, so that was a nice surprise!
I went ahead and applied for the More Rewards AMEX and was approved for a $1K SL (it's a start). TU was pulled, my score is 676.
Does anyone know how long it takes for Navy to report your new credit card to the CRAs? I read the last 20 pages of this thread and didn't see anything. Appreciate the help. And thanks again to all of you lovely people on this forum! My credit journey has improved dramatically based on the information I have learned here.
Usually after 2 statements/billing cycles. Congrats on your approval and welcome to the forums!
Agreed w/ the above, 2 statements usually. Welcome!
Silly question. I just got the More Rewards AMEX. I plan to redeem points for cash back. I've seen cases from other institutions where say 5000 points = 50$, but 35000 = $400, so there is an incentive to wait to redeem. Is that true at all with NFCU? I have looked around and don't see anything like that, but wanted to be sure before I start redeeming. Thanks!
@recoveringfrombk7 wrote:Silly question. I just got the More Rewards AMEX. I plan to redeem points for cash back. I've seen cases from other institutions where say 5000 points = 50$, but 35000 = $400, so there is an incentive to wait to redeem. Is that true at all with NFCU? I have looked around and don't see anything like that, but wanted to be sure before I start redeeming. Thanks!
Where did you see that at? I'm not challenging you on it, I'd just like to know where you found it because NFCU website says something different.
35,000 = $350
@Anonymous wrote:
@recoveringfrombk7 wrote:Silly question. I just got the More Rewards AMEX. I plan to redeem points for cash back. I've seen cases from other institutions where say 5000 points = 50$, but 35000 = $400, so there is an incentive to wait to redeem. Is that true at all with NFCU? I have looked around and don't see anything like that, but wanted to be sure before I start redeeming. Thanks!
Where did you see that at? I'm not challenging you on it, I'd just like to know where you found it because NFCU website says something different.
As I said in the part you bolded "from other institutions". I was verifying that Navy does not do something similar. Thanks.