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Credit Card shut down :(

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Credit Card shut down :(

Hi All,

 

So I've had a few credit setbacks over the last few years due to job loss, and as a result my credit score has dropped to about 573 and my utilization has gone up to 90%, but I'm slowly but surely turning things around. One card I tried to make sure I was never late on was my Chase United Explorer card, and I always paid more to get the balance down. So it was quite shocking and disappointing when I discovered that Chase had decided to close my account today Smiley Surprised

 

When I called to ask why, I got an explanation about how Chase periodically checkes accounts and if they find that there's a customer they deem a credit risk because of their credit history (because of late/delinquent payments and high utilization in my case), they reserve the right to close an active account (even if that account has been pristine with no late payments whatsoever), which is what they did. How a closed account is supposed to help my credit at this point is beyond me, but here we are. I've already gone through the 5 stages of grief over this, but now I'm at level 5 (acceptance). It's a huge bummer and I don't know what to do. 

 

Any ideas about what my next move should be? I have considered everything from writing a letter begging them to reconsider due to my circumstances (& the fact that I've been a longtime Chase customer) to closing all of my Chase accounts, bank accounts included. Everything is on the table at his point. It's as if they just told me "we're deeming you a credit risk because of what's on your credit report, but we're going to make it worse by closing this active account and making you more of a credit risk..."

it makes no sense to me. Smiley Sad

 

Message 1 of 21
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Valued Contributor

Re: Credit Card shut down :(

Sorry, they slammed you. I don't have a chase card, but from what I've read around the forum they do seem to get spooked pretty easily. I would say you need to work on getting all the balances down so some of the others don't start to balance chase you or close tradelines.

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Message 2 of 21
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Regular Contributor

Re: Credit Card shut down :(


@tcm75 wrote:

 

One card I tried to make sure I was never late on was my Chase United Explorer card, and I always paid more to get the balance down. So it was quite shocking and disappointing when I discovered that Chase had decided to close my account today Smiley Surprised

 

Is there a balance on the card? If so and they closed the account, it will report 100% utilization.  Pay it off immediately if possible.

 

It's a shame when you've had issues and been forced into debt, worked so hard to legitimately pay down your debt, and you get slapped in the face for it. Chase has a reputation for being "conservative" and has done similar things to many others. Don't take it personally, all creditor/debtor relationships are strictly business, don't buy the "relationship" hype.  We're just a credit report/FICO score to them and are coded as either an asset or liability, the level at which you turn from asset to liability is different at different banks.   If they don't want your business, decide if you want theirs and move on.

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Message 3 of 21
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Valued Contributor

Re: Credit Card shut down :(

Punished for using cards - nothing new in the world of credit, unfortunately. Discover shut me down last year when I carried a large 0% balance on my BoA card (we put solar on the house) and waited until my tax refund to pay it off. Honestly I had forgotten I even had a Discover card, since it was sockdrawered for a year before that. 

 

Closed accounts with a balance are brutal on credit scores, because in most cases they will show 100% utilizaiton until they are paid off. I recommend getting down to $0 balance as soon as possible. Time heals all!


Message 4 of 21
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Regular Contributor

Re: Credit Card shut down :(

The good news for you if there is any to be found is since you were not in any trouble per say with Chase besides having trouble elsewhere once you do pay everything off and get your score back up I am pretty sure Chase will take you back. I know that is not any consolation considering the circumstances but having been in similar situations as you are now I know banks dont do these thing lightly and will generally welcome you back at a future date. Keep the faith I promise you it does get better just takes time.

Message 5 of 21
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Re: Credit Card shut down :(


@DeeBee78 wrote:

Punished for using cards - nothing new in the world of credit, unfortunately. Discover shut me down last year when I carried a large 0% balance on my BoA card (we put solar on the house) and waited until my tax refund to pay it off. Honestly I had forgotten I even had a Discover card, since it was sockdrawered for a year before that. 

 

Closed accounts with a balance are brutal on credit scores, because in most cases they will show 100% utilizaiton until they are paid off. I recommend getting down to $0 balance as soon as possible. Time heals all!


As long as the CL is reported there is no problem with utilization

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Message 6 of 21
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Super Contributor

Re: Credit Card shut down :(


@tcm75 wrote:

Hi All,

 

So I've had a few credit setbacks over the last few years due to job loss, and as a result my credit score has dropped to about 573 and my utilization has gone up to 90%, but I'm slowly but surely turning things around. One card I tried to make sure I was never late on was my Chase United Explorer card, and I always paid more to get the balance down. So it was quite shocking and disappointing when I discovered that Chase had decided to close my account today Smiley Surprised

 

When I called to ask why, I got an explanation about how Chase periodically checkes accounts and if they find that there's a customer they deem a credit risk because of their credit history (because of late/delinquent payments and high utilization in my case), they reserve the right to close an active account (even if that account has been pristine with no late payments whatsoever), which is what they did. How a closed account is supposed to help my credit at this point is beyond me, but here we are. I've already gone through the 5 stages of grief over this, but now I'm at level 5 (acceptance). It's a huge bummer and I don't know what to do. 

 

Any ideas about what my next move should be? I have considered everything from writing a letter begging them to reconsider due to my circumstances (& the fact that I've been a longtime Chase customer) to closing all of my Chase accounts, bank accounts included. Everything is on the table at his point. It's as if they just told me "we're deeming you a credit risk because of what's on your credit report, but we're going to make it worse by closing this active account and making you more of a credit risk..."

it makes no sense to me. Smiley Sad

 


It is a bummer and it makes no sense.

 

But my advice is to just let it be. I don't think calling them will accomplish anything. And I don't think closing your other accounts will accomplish anything.


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Message 7 of 21
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Senior Contributor

Re: Credit Card shut down :(


@tcm75 wrote:

Hi All,

 

So I've had a few credit setbacks over the last few years due to job loss, and as a result my credit score has dropped to about 573 and my utilization has gone up to 90%, but I'm slowly but surely turning things around. One card I tried to make sure I was never late on was my Chase United Explorer card, and I always paid more to get the balance down. So it was quite shocking and disappointing when I discovered that Chase had decided to close my account today Smiley Surprised

 

When I called to ask why, I got an explanation about how Chase periodically checkes accounts and if they find that there's a customer they deem a credit risk because of their credit history (because of late/delinquent payments and high utilization in my case), they reserve the right to close an active account (even if that account has been pristine with no late payments whatsoever), which is what they did. How a closed account is supposed to help my credit at this point is beyond me, but here we are. I've already gone through the 5 stages of grief over this, but now I'm at level 5 (acceptance). It's a huge bummer and I don't know what to do. 

 

Any ideas about what my next move should be? I have considered everything from writing a letter begging them to reconsider due to my circumstances (& the fact that I've been a longtime Chase customer) to closing all of my Chase accounts, bank accounts included. Everything is on the table at his point. It's as if they just told me "we're deeming you a credit risk because of what's on your credit report, but we're going to make it worse by closing this active account and making you more of a credit risk..."

it makes no sense to me. Smiley Sad

 


OP,

 

Just work on paying your balances down and when your report and scores rebound you may find yourself getting back in with Chase and then again, you may not want them in your credit world anymore.

 

I won't tell you that closing your remaining Chase account will make a difference because it probably won't.  It'll make you feel good emotionally as you'll feel as though you stuck it to them as you perceived they've done to you...but after that fleeing feeling, it's back to reality.  

 

If your remaining Chase account serves you well then keep it...if not, let it go.  Be upset and angry for a moment if it helps you to better deal with this account closure but after 10 minutes, move on to accomplishing what you mentioned in your post...paying your debt down and turning things around.

 

This sucks for sure but you'll be past this in no time.  Good luck to you!

Message 8 of 21
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Community Leader
Super Contributor

Re: Credit Card shut down :(


@tcm75 wrote:

Hi All,

 

So I've had a few credit setbacks over the last few years due to job loss, and as a result my credit score has dropped to about 573 and my utilization has gone up to 90%, but I'm slowly but surely turning things around. One card I tried to make sure I was never late on was my Chase United Explorer card, and I always paid more to get the balance down. So it was quite shocking and disappointing when I discovered that Chase had decided to close my account today Smiley Surprised

 

When I called to ask why, I got an explanation about how Chase periodically checkes accounts and if they find that there's a customer they deem a credit risk because of their credit history (because of late/delinquent payments and high utilization in my case), they reserve the right to close an active account (even if that account has been pristine with no late payments whatsoever), which is what they did. How a closed account is supposed to help my credit at this point is beyond me, but here we are. I've already gone through the 5 stages of grief over this, but now I'm at level 5 (acceptance). It's a huge bummer and I don't know what to do. 

 

Any ideas about what my next move should be? I have considered everything from writing a letter begging them to reconsider due to my circumstances (& the fact that I've been a longtime Chase customer) to closing all of my Chase accounts, bank accounts included. Everything is on the table at his point. It's as if they just told me "we're deeming you a credit risk because of what's on your credit report, but we're going to make it worse by closing this active account and making you more of a credit risk..."

it makes no sense to me. Smiley Sad

 


Yep, it’s not good for consumers when banks have to make decisions in their best interest. Although you may have continuously paid Chase on time, once your scores started dropping and they realized that you were missing minimum pymts on other credit cards, they decided to take action before your situation got worse and affected them. When your scores started decreasing and your debt started increasing, it sounded the alarm. 

 

So, keeping fingers crossed that other creditors won’t follow suit or start doing CLD. 

 

It may be a good time to call other creditors and see if APR can be reduced or ask of ways they can help you out during this tough patch. 



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Message 9 of 21
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Valued Contributor

Re: Credit Card shut down :(

Yep, this is exactly what Bank of America did to me when I was going through my divorce.

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