Beware- Requesting to consolidate Chase accounts may result in review of credit profie

[bradlin]

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@CreditCuriousity wrote:

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@bradlin wrote:

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@Anonymous wrote:

They generally think you're reward hunting, which costs them money, so they look down on it. 

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This is where I get confused as heck about this. They make money from swipe fees but the rewards kind of kills that for them. They make money from you carrying a balance and looking at the rates they offer (prime +7.99-15.99 etc) they must make a killing off this. But then they frown upon your utilization which is ultra profitable to them. I mean you get a nice fat interest bill equal to a fat cell phone bill or a cable bill or even a car lease if you keep the balance beyond the grace period.

Then I hear some cards like CSP are designed for people who always pay in full. Then who are those people? Are they not rewards seekers? These are the prime customers who are also the not profitable customers. So where do they make their money? When a member of this "prime" decides to carry a balance every now and then?

I feel like their business revolves around giving someone a high enough credit line that it entices them to overspend or maybe offer a buffer for emergencies to people who are likely to pay it off in a few months. But then at the same time they hold back peeople from doing what is profitable for them by reducing people's lines.

You can't win with the banks. If you PIF every month you'll get dropped into some "unprofitable" tranch at the bank even though you are a "prime" customer carrying their most rewarding card with your nice credit rating and income. If you utilize your card and kick them hundreds a years in interest you are now "sub prime" with them but put into the "profitable tranch" but they'll freak out and SP you every 15 days and find any reason to reduce your CL.

Could some please summarize how this works? I guess it really comes down to some high level proprietary risk analysis.

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Probably hope you keep the card for more then one year then dumping it before the AF hits (see Ritz carlton card and CSP here among others).  People on here are a unique bunch of people that aren't the norm and are more educated thus most people cancel before the AF hits, but this can cause issues as well as you are considered a churner..   So they probably hope you carry a balance as well of say 10% of your CL and then they would make their money back of the signup bonus.  Ya you really can't win if you are educated..  I plan on keeping my CSP for more then the first year though, so they will make 95$ of their signup bonus back from me, but no interest and some swipe fees so they might make 150 back of the initial bonus..  Ya you kinda can't win sometimes.  What they deffinetly do look down upon is churning of the cards as obviously they lose money.  Meaning keeping under a year transferring limits and canceling your cards before the AF hits then re-applying in a few years for another sign-up bonus although people will argue differently.

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I can understand them fighting churners. I wouldn't do it because it's a huge hassle and it will just put you in their bad books when you may actually need something from them. It's just bad business and the level of modern analytics allows them to find you and categorize you easily. But in the OP's case they reduced his CL on his AF card making him more likely to cancel that card. I mean $95 with a 5k line is better value than $95 for a $2.5k line. It just doesn't add up for me.

I'm sure their ideal is your case of someone just keeping 10% of the CL on the card all the time. And naturally for people who keep the card for years.

[bradlin]

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@baller4life wrote:

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@bradlin wrote:

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@baller4life wrote:
I closed my Slate same day of approval and moved limit to Freedom. No problems. Reported to credit as a closed account. Shredded card when it came in mail. Limit was too low for bt($2200).

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Effectively HP CLI then?

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Ummmm no. One TU hp for both Freedom and Slate. Sorry, should have been more clear. Apped Slate and Freedom same day from pre-qual site.

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Very nice. Now I know that's possible. I want to do BA Chase and CSP in that order on the same day been gardening for too long.

[CreditCuriosity]

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@bradlin wrote:

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@CreditCuriousity wrote:

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@bradlin wrote:

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@Anonymous wrote:

They generally think you're reward hunting, which costs them money, so they look down on it. 

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This is where I get confused as heck about this. They make money from swipe fees but the rewards kind of kills that for them. They make money from you carrying a balance and looking at the rates they offer (prime +7.99-15.99 etc) they must make a killing off this. But then they frown upon your utilization which is ultra profitable to them. I mean you get a nice fat interest bill equal to a fat cell phone bill or a cable bill or even a car lease if you keep the balance beyond the grace period.

Then I hear some cards like CSP are designed for people who always pay in full. Then who are those people? Are they not rewards seekers? These are the prime customers who are also the not profitable customers. So where do they make their money? When a member of this "prime" decides to carry a balance every now and then?

I feel like their business revolves around giving someone a high enough credit line that it entices them to overspend or maybe offer a buffer for emergencies to people who are likely to pay it off in a few months. But then at the same time they hold back peeople from doing what is profitable for them by reducing people's lines.

You can't win with the banks. If you PIF every month you'll get dropped into some "unprofitable" tranch at the bank even though you are a "prime" customer carrying their most rewarding card with your nice credit rating and income. If you utilize your card and kick them hundreds a years in interest you are now "sub prime" with them but put into the "profitable tranch" but they'll freak out and SP you every 15 days and find any reason to reduce your CL.

Could some please summarize how this works? I guess it really comes down to some high level proprietary risk analysis.

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Probably hope you keep the card for more then one year then dumping it before the AF hits (see Ritz carlton card and CSP here among others).  People on here are a unique bunch of people that aren't the norm and are more educated thus most people cancel before the AF hits, but this can cause issues as well as you are considered a churner..   So they probably hope you carry a balance as well of say 10% of your CL and then they would make their money back of the signup bonus.  Ya you really can't win if you are educated..  I plan on keeping my CSP for more then the first year though, so they will make 95$ of their signup bonus back from me, but no interest and some swipe fees so they might make 150 back of the initial bonus..  Ya you kinda can't win sometimes.  What they deffinetly do look down upon is churning of the cards as obviously they lose money.  Meaning keeping under a year transferring limits and canceling your cards before the AF hits then re-applying in a few years for another sign-up bonus although people will argue differently.

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I can understand them fighting churners. I wouldn't do it because it's a huge hassle and it will just put you in their bad books when you may actually need something from them. It's just bad business and the level of modern analytics allows them to find you and categorize you easily. But in the OP's case they reduced his CL on his AF card making him more likely to cancel that card. I mean $95 with a 5k line is better value than $95 for a $2.5k line. It just doesn't add up for me.

I'm sure their ideal is your case of someone just keeping 10% of the CL on the card all the time. And naturally for people who keep the card for years.

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OP also had around 150kish in CL, not sure of OP's income so also could of been a factor.   Also how quickly they acquired all this new credit.  Some unknowns.

[racer-x]

Great thread....I was just getting ready to do this.  I have a 7 mo Slate that I was going to put on my CSP and close the Slate.  I also have the Freedom.

Chase CLD"s all 3 accounts 2 months ago for about $16k worth.

Maybe I'll just quietly ease back off their radar.   Bastids.

[tld409]

Wow a lot of good useful information! I honestly didn't realize that this would be looked upon negatively by Chase. Closing Slate was just part of my master plan to reduce overall cards down to what I truly only need/use. Now, I know better.

[Anonymous]

just recently i closed freedom and amazon card and moved the limits to my other freedom (used to be some other card untill that was discontinued and converted to freedom) and then i also closed my slate card and moved it over to my saphire card..

now i'm scared of CLD :/

[chalupaman]

Oh man! That's terrible.

I'm gonna lay low with my credit consolidations and keep my limits the way they are for a while. It was tempting to want to move some of the Ritz limit over to the CSP or AARP but I'd rather play it safe and not poke the Chase bear in this case.

I did move my SW limit to my AARP a while back with no problems though so I can't imagine why they might be changing their policies a bit. Also I think my card had a 0 balance before I did anything. I also moved $500 from the AARP to my Amazon recently and they didn't have an issue with that either and in a letter I got from chase about my CSP, the person who helped me out with my expediting of my card said that if I wanted a bigger limit on my CSP, I'd be welcome to move some of my limit from my other Chase lines over.

[chalupaman]

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@CreditCuriousity wrote:

Chase doesn't like Churning of cards so quickly just to move a CL over... It is pretty obvious this is becoming a trend to get CLI's.  Some it might not happen to, but I gurantee you are looked at more closely if you close a card out before the AF hits and MOVE the CL over with the closure as well.  Can't have the both of best worlds alot of the times.  It appears they might be seeing this trend and chaning their policies quite possibly too.

Just my 2 cents.

Sorry to hear OP.

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I think that's exactly why they got scared. I've only done it once and the other two times I did it, I've kept the cards open. 

[Anonymous]

Maybe it has to do as well with just WHO initiated the roll.

In my case, the rep spoke before I could as to if i'd like to roll the SW limit to my RC.

[kdm31091]

I won't be surprised if they implement a HP policy for rolling limits. I think they know people use the current roll limit process instead of a HP CLI and they clearly don't like it. They're catching on.

I think in the future its not gonna be as simple to do and will require a HP...just like a CLI. That way there's no way to get around HP, or collect a bonus and then roll limit when AF comes up. People that take large advantage of these things are surely being noticed and this will slow them down.