One problem cancels all accounts with same credit card issuer?

[Fico2Go]

My biggest fear with getting multiple cards from the same issuer is lack of diversity.  If the issuer has any concern with one of your accounts how likely are they to cancel all your accounts with them? 

Let's say for example person A has a Chase Freedom, Chase Slate, CSP, Chase Ink, and British Airways, Southwest Marriot, etc..

What is the likelihood that Chase will close all the accounts due to one adverse action or derogatory with any of the account?  For example UTIL ratio reached 70% on one of the card...can Chase close the remaining cards?

I pose this question after seeing many users apping for multiple cards with the same issuer.  I realize the advantages with easy CL transfering and foot in the door internal underwriting but are there disadvantages as well?

[SunriseEarth]

It's a risk.   For a while, people here were in a panic when GE started taking AA on some members with many GE backed accounts.    I think it's certainly easy to grow with one lender, but easy to be shunned by one lender, too.  

[score_building]

Yeah, can be a doubled edged sword, as you say multiple product with a single lender has advantages but diversity is always key, especially if things head south.

A card holder may also sometimes find a bank's policies or activities objectionable, without respect to AA on an account, in which case having on-board options is useful.

[Anonymous]

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@Fico2Go wrote:

My biggest fear with getting multiple cards from the same issuer is lack of diversity.  If the issuer has any concern with one of your accounts how likely are they to cancel all your accounts with them? 

Let's say for example person A has a Chase Freedom, Chase Slate, CSP, Chase Ink, and British Airways, Southwest Marriot, etc..

What is the likelihood that Chase will close all the accounts due to one adverse action or derogatory with any of the account?  For example UTIL ratio reached 70% on one of the card...can Chase close the remaining cards?

I pose this question after seeing many users apping for multiple cards with the same issuer.  I realize the advantages with easy CL transfering and foot in the door internal underwriting but are there disadvantages as well?

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Chase is one of those that will shut down all cards and bank accounts in certain circumstances, usually actions that appear suspicious such as depositing cash or money orders frequently. due to manufactured spend.   (Depositing this sort of  thing in the bank that issues the credit cards is bad for two main reasons: 1) you can lose both your cards and your bank accounts, 2) and it is harder to say "No, it isn't money laundering, I was merely abusing the credit card issued by your bank")

And outside that, if you are showing negative things like too high utilization, late paying etc on one card they can certainly evaluate the entire relationship, and that makes sense.  (CARD Act prevents this across issuers but think it is OK within one issuer).

So yes, have some issuer (and network) diversity, as a bank can shut you down, either because of something real or through an error.

[Fico2Go]

II had a similar experience recently with a joint acct with my uncle.  We hunt together and shared a CC for a sporting store.  Well, his son quietly maxed out on his Discover card and had two other cards closed on him due to changes in his credit scores and ratios.   His CLs dropped from $2000 to $700 in a few weeks.   I can only imagine what would have happened had he put all his eggs in one basket. 

[Fico2Go]

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@Anonymous wrote:

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@Fico2Go wrote:

My biggest fear with getting multiple cards from the same issuer is lack of diversity.  If the issuer has any concern with one of your accounts how likely are they to cancel all your accounts with them? 

Let's say for example person A has a Chase Freedom, Chase Slate, CSP, Chase Ink, and British Airways, Southwest Marriot, etc..

What is the likelihood that Chase will close all the accounts due to one adverse action or derogatory with any of the account?  For example UTIL ratio reached 70% on one of the card...can Chase close the remaining cards?

I pose this question after seeing many users apping for multiple cards with the same issuer.  I realize the advantages with easy CL transfering and foot in the door internal underwriting but are there disadvantages as well?

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 2) and it is harder to say "No, it isn't money laundering, I was merely abusing the credit card issued by your bank")

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smileylol

[Fico2Go]

On the positive side with issuers such as CHASE that allows CL transferring.  You could potentially app for 3-4 of their products and transfer most or all to one product.  An express way to boost CLs. 

[Anonymous]

Yes. it makes reasonable sense if you have an issuer that you like, to get many of your cards with them for various reasons, including your CL transfer example.

You should just also have 1 or 2 cards outside that relationship, with enough credit to tie you over if something goes wrong with your relationship with the issuer  (either time to get it sorted or to apply for new cards elsewhere).

[WuXing5]

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@Anonymous wrote:

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it isn't money laundering, I was merely abusing the credit card issued by your bank")

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p.s. OP, i feel like i have read a similar thread here before...

[Open123]

Always prudent to diversify risk.  

In my view, one should have relationships with at least 4 creditors and banks.  There are benefits to consolidating everything with a single Bank, but I've always preferred multiple relationships, since no single institution does everything the best.