Seriously Paranoid with all the recent accounts closed by chase

[Anonymous]

I've been reading the recent threads in regards to chase closing accounts without notice. I was wondering if this will probably happen to us that are in the rebuilding stages.  Most importantly,  ME, LOL. Seriously though, I wanted to know if there is a specific way to use their cards (freedom). Since being new to credit an all, I have always PIF. I have manage to keep my utilization at 1%. Can someone please shed some light on how chase likes to see usage on their cards.  I know many of you have had chase for years, an know what to do an what not to do. I did open one other account after chase. I got approved for the Barclay's rewards MasterCard (CL 750). Although the Freedom an the Slate are my highest limit, 2200 AN 2000, I wasn't sure if I may potentially spook them with the recent Barclay's approval. Thanks in advance guys.

[jsucool76]

Despite what any thread anywhere says, in my opinion, there's always a "reason." 

Unless you're popping lates left and right, maxing out your card and making min payments, or apping for a new card every day, you'll most likely be fine. 

[NRB525]

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@Anonymous wrote:

I've been reading the recent threads in regards to chase closing accounts without notice. I was wondering if this will probably happen to us that are in the rebuilding stages.  Most importantly,  ME, LOL. Seriously though, I wanted to know if there is a specific way to use their cards (freedom). Since being new to credit an all, I have always PIF. I have manage to keep my utilization at 1%. Can someone please shed some light on how chase likes to see usage on their cards.  I know many of you have had chase for years, an know what to do an what not to do. I did open one other account after chase. I got approved for the Barclay's rewards MasterCard (CL 750). Although the Freedom an the Slate are my highest limit, 2200 AN 2000, I wasn't sure if I may potentially spook them with the recent Barclay's approval. Thanks in advance guys.

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Can you list out all your cards, limits, and month/year each was issued?

[Anonymous]

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@jsucool76 wrote:

Despite what any thread anywhere says, in my opinion, there's always a "reason." 

Unless you're popping lates left and right, maxing out your card and making min payments, or apping for a new card every day, you'll most likely be fine. 

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I understand your skepticism but read other boards and other threads unrelated to me and this board .... I am not alone.  Chase is closing some accounts and there is not more to the story or another "reason".  It's easy to hide behind the computer and assume that someone is abusing their credit or paying late but I am putting it out there - all of it - it just isn't there to speculate on this time.  Trust me, I have scrutinized every aspect.  The ONLY thing that remotely makes sense is I paid in full and earned points but didn't pay interest so they weren't making money on these cards.  I wouldn't think this would cause my accounts to close but given my bankers confidence - now - in seemingly thinking they will be reopened upon this review makes me think this is somehow some sort of end of the year restructuring.  I don't really know but my confidence is shot and it certainly was not specific to me and no fault of myself or my business and I was certainly not maxing out my cards.  

Having too much available credit is hardly a valid reason given my justifiable income and regular and constant payments.

To the OP:  No reason to be paranoid, just do as you normally would and let the cards fall where they will.  If it is meant to be, it will be and I truly believe I have been led to a better banking relationship as a result of this mishap so if you find yourself in my unfortunate circumstance, don't fret, regroup and something good will come from it.  If not, you will likely Love Chase like I did right up until this unfortunate falling out.

[Anonymous]

[heyarrnold]

There's always more to the story! OP, don't worry about it. Start worrying when you start to abuse their reward structure, paying late, maxing a credit card etc. 

[Anonymous]

Barclays- CL 750

BOA- CL 500 secured

Cap1- CL 300 secured

Discover It- CL 200 secured

Chase Freedom- CL2200  Has NOT reported to CR yet.

Chase Slate- CL 2000  Has NOT reported to CR yet.

[negg]

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@jsucool76 wrote:

Despite what any thread anywhere says, in my opinion, there's always a "reason." 

Unless you're popping lates left and right, maxing out your card and making min payments, or apping for a new card every day, you'll most likely be fine. 

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  +1.  People never divulge the "whole" truth.  CC companies just don't close account cause they are bored on a Tuesday.  There's a reason, what that reason is...who knows.  Pay your bill on time, don't run a bal for a year, don't apply for cc every week and you will be fine. 

[NRB525]

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@Anonymous wrote:

Barclays- CL 750

BOA- CL 500 secured

Cap1- CL 300 secured

Discover It- CL 200 secured

Chase Freedom- CL2200  Has NOT reported to CR yet.

Chase Slate- CL 2000  Has NOT reported to CR yet.

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As a framing statement, I don't worry about what the CCC might do with a card I have open.

Since all these cards are issued in the last several months, and there are some reports of lots of inquiries (or not lots of inquiries) triggering issues with Chase, all you can do is use the cards like you would want to.

For myself, I've had Chase cards with balances close to the max CL of ~$30k in years past. That's one card with others large CL also. I've had as many as 5 Chase cards open at one time, usually with balances, usually on low interest BT pay downs. Over the years, Chase has CLD all the cards I've had (I think there was one they just closed rather than CLD). One Chase card I just closed myself in October. These high balances originated prior to 2008, many were legacy from mergers they did, such as WaMu, and so a lot of their response recently has been due to the credit crisis. So my experience with Chase is, they take action to reduce their credit risk. But even if a card account closes with a balance, the terms are frozen so you just pay it down with those terms. I have two at other banks still being paid down on old terms. It's not a big deal.

With the Freedom and Slate you have, I would just use them according to terms, with the idea of paying large amounts on what you charge to the account, PIF if you want to. All you can do is use the cards reasonably and pay according to terms. Chase is going to do what they are going to do, but they are a credit issuing company, so they do have to have some customers after these random closures. Most of the people with Chase cards today will be unaffected by these closures.

Good luck!

[bdhu2001]

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@jsucool76 wrote:

Despite what any thread anywhere says, in my opinion, there's always a "reason." 

Unless you're popping lates left and right, maxing out your card and making min payments, or apping for a new card every day, you'll most likely be fine. 

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I haven't had Chase close a card or etc, but years ago Discover decrease my CL to $500 and never raised it back.  I can easily get a new discover card with a higher limit, but they won't put me back to my initial limit. As you can see from myFICO score and other cards I've applied for and gotten, the problem isn't the risk or my usage pattern.  Nor is it my utilization.  My current utilization is below 1%, but sometimes it goes up to 10-13%.  They had some reason in their risk assessment or etc, but they never shared it with me.

I believe Chase is doing the same thing, but if they told everyone "we think you're too much of a risk or that you don't bring in enough profit" (whatever their true reason is) All these customers would cut ties with Chase. They need some of these customers to stay, because it gives their bank the appearance of a balanced portfolio instead of all high risk customers.

My main point here is that banks these days aren't honorable and they go after the biggest profit, just like other corporations. However, they attempt to make it look different so that if they're gamble doesn't work, the taxpayers will pick up their losses just like the previous financial crash.