Chase Freedom over the limit

[Anonymous]

I was making a large purchase of 26k, which I had a plan to pay off in full over the next 12 months, but over the next 3-6 months I would not be able to make more than a minimum payment. So I preferred to get a new 0% 12-15 month intro offer card, which seemed to be the best solution for me.

I applied for Chase Freedom, with a 646 TU, currently 30% utilzation. I was approved for $3200 online. I then applied for a Chase Southwest rewards card, and was approved for $8500.

I called in to Chase, and merged my available $8500 on the southwest card onto my Freedom card, all within the same day of applying. So now I had a $11,700 limit Freedom card.

I have heard about Chase Freedom's "credit access line" and allowing customers to potentially go over their limit. So, I tried the following which worked:

I had the vendor run 8k, 8k 2 transactions, both of which were approved. A third 8k transaction declined. I then had them run a 4k, 4k set of transactions, both of which were approved. This made a total of 24k. The third 4k transaction declined. We then ran another 1k, 1k set which completed 26k. These were approved. So, 26k was run in total on the card.

I called Chase and verified that all of this was still within the 0% Intro offer for 15 months, and the 1% cash back rewards. They confirmed. I also confirmed that the account would be subject to Chase's standard 1% minimum payment. About 2 weeks alter, I received a letter in the mail that the Freedom account was closed, due to RAPID CREDIT USAGE. I called in, and again confirmed that the 0% intro offer was in place, the 1% cash back was in fact credited. So I didn't worry about it.

I checked creditkarma within the next couple weeks, which reported that I had a 11,700 credit line, utilized at 11,700. All of this took place over the past month.

So my question is, now that this is said and done, are there any negative aspects to what I did? The bottom line is, what I initially set out to do was accomplished.

[B335is]

You'll see your score take a significant hit. It sounds like you have a plan, but other lenders may take AA if that reports too long.

[Anonymous]

Agree with the above. Its good that you have a plan but this part below might present a problem. Making only minimum payments for months may set off alarms but hopefully not.

over the next 3-6 months I would not be able to make more than a minimum payment.

[toi34]

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@Anonymous wrote:

I was making a large purchase of 26k, which I had a plan to pay off in full over the next 12 months, but over the next 3-6 months I would not be able to make more than a minimum payment. So I preferred to get a new 0% 12-15 month intro offer card, which seemed to be the best solution for me.

I applied for Chase Freedom, with a 646 TU, currently 30% utilzation. I was approved for $3200 online. I then applied for a Chase Southwest rewards card, and was approved for $8500.

I called in to Chase, and merged my available $8500 on the southwest card onto my Freedom card, all within the same day of applying. So now I had a $11,700 limit Freedom card.

I have heard about Chase Freedom's "credit access line" and allowing customers to potentially go over their limit. So, I tried the following which worked:

I had the vendor run 8k, 8k 2 transactions, both of which were approved. A third 8k transaction declined. I then had them run a 4k, 4k set of transactions, both of which were approved. This made a total of 24k. The third 4k transaction declined. We then ran another 1k, 1k set which completed 26k. These were approved. So, 26k was run in total on the card.

I called Chase and verified that all of this was still within the 0% Intro offer for 15 months, and the 1% cash back rewards. They confirmed. I also confirmed that the account would be subject to Chase's standard 1% minimum payment. About 2 weeks alter, I received a letter in the mail that the Freedom account was closed, due to RAPID CREDIT USAGE. I called in, and again confirmed that the 0% intro offer was in place, the 1% cash back was in fact credited. So I didn't worry about it.

I checked creditkarma within the next couple weeks, which reported that I had a 11,700 credit line, utilized at 11,700. All of this took place over the past month.

So my question is, now that this is said and done, are there any negative aspects to what I did? The bottom line is, what I initially set out to do was accomplished.

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Damn.....LMAO!!!!! ...working the system! I LUV Myfico forums!!!! 

[PDXoriginal]

You completely mis-understood how NPSL of Visa Signature works. Any balance over your limit was supposed to be PAID IN FULL after statement cut, you're not supposed to carry a balance over your limit for a long duration. I wouldn't be surprised if Chase takes more adverse action against you.

[Anonymous]

PDX thank you for that summary. Im not familiar with going over the limit on cards, never thought to do so with any of my flexible spending accounts. But if thats how it works this wasnt a very good plan.

[Anonymous]

this can turn out good  

15k at 18% 

[OmarGB9]

I'm not sure what exactly it is you accomplished OP, besides getting your account shut down and possibly putting yourself under a microscope with Chase as well as other lenders potentially.

[CreditMagic7]

OUCH!!

It's a matter of damage control now.

I would make efforts to take some corrective measures whatever you can as soon as you can ASAP if possible.

[Anonymous]

Question. Since the account was shut down does that void the 0% APR? What I mean is will the OP end up having to pay the regular interest rate on the entire amount immediately?
Hope I asked that correctly, still learning around here!