Not a Chase Bank fairytale story!

[MountainHiker]

I'm wondering if Chase Bank holds a long term memory grudge? And let me tell you why. I found out tonight that I may have burnt Chase Bank not once but actually twice. A long time ago when I was a teenager, there was a short space of time that I had student loans in negative status. And those loans were with Chemical Bank. We're talking around the early 1980s.

They didn't stay in negative status for a long period of time. But before they were sold to a different student loan provider they were in negative status. 

Chemical Bank is no longer around because Chase Bank bought them out several years later. 

Now fast forward to 2012 and I apply to Chase Bank for a credit card and no matter how well I paid that card it was never considered for a spending limit increase. Which makes me wonder if that student loan situation could have been the reason why Chase Bank never considered me for anything but that low limit card.

What do you think? Do you think Chase Bank would hold a poor history with a 1980 student loan from a different acquisition against a Chase Bank customer?

I always thought student loans by law had to be viewed differently than a normal loan product because of the federal government regulations involved.

I can't think of any other reason why that card was bucketed. I had it for five years and they refused to raise the spending limit. 

[wasCB14]

Not sure about student loans, but there are definitely reports of people being denied for Chase cards due to old CC charge-offs with Washington Mutual from before Chase bought it.

[Brian_Earl_Spilner]

Yes, chase takes negative account information into consideration for accounts purchased. Yes, they will reference decades old accounts. Regardless of type of product, a financial loss to them is a financial loss. What I don't like is that they will say a denial is due to causing chase a loss when all they did was purchase the existing loss. 

[Hoben02]

Well you could test out your case apply for the chase freedom unlimited I think the chase freedom is impractical for most people and see if they extend you more credit. 

[MountainHiker]

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@wasCB14 wrote:

Not sure about student loans, but there are definitely reports of people being denied for Chase cards due to old CC charge-offs with Washington Mutual from before Chase bought it.

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Credit in America is so frustrating. The lenders and reporting agencies seem to have all the power. Consumers are just along for the ride. And sadly it's almost better to go bankrupt than to pay derogatory debts off or wait out a unpaid debt. 

While a business can totally screw up and simply switch to a different name and tax ID. 

[MountainHiker]

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@Brian_Earl_Spilner wrote:

Yes, chase takes negative account information into consideration for accounts purchased. Yes, they will reference decades old accounts. Regardless of type of product, a financial loss to them is a financial loss. What I don't like is that they will say a denial is due to causing chase a loss when all they did was purchase the existing loss. 

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I personally believe the federal government should regulate some of these archaic business practices that allow a company to go back 30-40 years to something that did not even happen to their company, but instead happened at a company that they made the decision to purchase. By that business principle nobody would be safe unless they have a 100% batting average at credit!

[Remedios]

I'm confused. You were not denied for anything, in fact the approved you in the past, but because you did not get an increase when you had chase card  (did you even ask for increase?) you somehow connected the dots to some old student loans?  

[Rogue46]

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@Remedios wrote:

I'm confused. You were not denied for anything, in fact the approved you in the past, but because you did not get an increase when you had chase card  (did you even ask for increase?) you somehow connected the dots to some old student loans?  

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I'm confused as well it would seem if they were somehow blacklisted they wouldn't have been approved for the initial card?

[MountainHiker]

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@Remedios wrote:

I'm confused. You were not denied for anything, in fact the approved you in the past, but because you did not get an increase when you had chase card  (did you even ask for increase?) you somehow connected the dots to some old student loans?  

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Trust me it's even more Bazar going through the experience than verbally explaining it.

Essentially I had a student loan with Chemical Bank 100 years ago that went into negative status when I, a young kid was attending college. It happened while I took two semesters off to work and save money. By the following semester when I was about to return to my studies, I found out that the account had in deed fallen into negative status. And keep in mind student loans were handled differently back then. 

But months later that account had been transferred to a different lender. So it left Chemical Bank in negative status. And went to the new student loan provider in negative status. But it didn't stay like that. Several weeks before returning back to school I was able to get them back in positive status. That allowed me to acquire student loans moving forward. Unfortunately my record with Chemical Bank reads as having a negative status loan. You following this situation?

When Chase Bank bought Chemical Bank they also have my previous account information. That's the situation. 

When I applied for a Chase Bank credit card I was not initially approved. I had to call in and find out why I was denied. My credit was excellent and I had zero derogatory accounts. I ask the CSR if she saw any reason for the denial and even she couldn't explain it.

In fact what she did was advocate on my behalf and was able to get me approved for a small SL card. It wasn't until several years later of multiple attempts that I was told this card will not see a increase. I was told four or five years later that all these attempts were denied because of previous negative history. I told them that's not possible because this was my first card with Chase. 

What I didn't factor in was that Chase buys other lenders, and they will hold against a person a previous history. 

That is something which did not even occur to me. And it's the only thing that explains it. I didn't even bother to shut that card account down and apply for another one in hopes of getting a better result. 

[ways2go]

Chase is really stingy in any automatic credit increases.  I have never asked for an increase.   I have 3 cards from Chase.   All the SL are the same as when I got them.  Amazon  was 2K,  I spend on this quite a bit.  I have come close to using that limit a couple of times. My daughter has one and she uses it all the time and they have increased her a couple of times.  I have a Chase IHG Select card. I have had that for about 9 or ten years.  SL was 3500 and it still sits there.   I got the United MileagePlus card.  They gave me a good SL on that at 14.3K.  I don't care if it increases.    There is no rhyme or reason with Chase, I believe.     I would like to see that Amazon Prime card get increased though, since I use it quite frequently...