Chase CCs

[FocusedAndDetermined]

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.

[Open123]

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@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.

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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.

[boomhower]

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@Open123 wrote:

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@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.

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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.

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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.

[solxp]

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@Open123 wrote:

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@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.

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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 --- 

[Open123]

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@boomhower wrote:

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@Open123 wrote:

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@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.

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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.

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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.