I just noticed that both of my Chase cards are pretty much worthless now. One went from $7k to $600 and the other from $10k to $500. The 0% balance transfer on the $7k was due to end this month and paid it off mostly last month ($300 left to pay). Whereas the other card went from $10k --> $2.6k --> $500.
Since the cards went down so much will they just close them out when I pay them off or will they just stay low like that?
Starting Score: EQ FICO 673 (/20/13) * 656 CK/TU (9/2013) * 711 Vantage (9/2013) * 632 CS (9/2013)
Sorry to hear about the CLD on your Chase cards.
What was your payment habit over the term of the 0% BT offer, comparing say minimum payment vs paying off the entire balance at once at the end of the term?
Do you have other significant balances on other cards at the same time?
I had several cards go through CLD / Balance Chasing from Chase. Some they closed, one I closed eventually when they raised the rate, but others they didn't close. It's a mixed bag of possibilities. Since your limits are now low, I tend to think they aren't going to close them out completely. They actually closed one of my cards that had a balance I was paying down, which is a quick way to ensure the card isn't used for new charges.
The last of the Chase AA was in about 2013, and by the end of 2014, January 2015 I got two new cards, so CLD is not a permanent Siberia with Chase.
Sorry for your AA OP
Lenders are very being very risk averse in these times.
While I have had no Chase AA, they have SP'd my EX every two weeks for the last several months.
They have finally relented.
My only experience with Chase AA is a bit dated, and on an AU account. It was rate-jacked (pre-CARD Act; it was always paid on time and no lates, collections, etc. on any accounts in either of our lives) and balance chased due to aggregate utilization across all revolving cards during The Great Recession.
It received a CLD down to $6500, and once utilization was under control again a number of years later it received an auto CLI of $2200 followed shortly by a requested CLI that resulted in a doubling to $19,400, and then the next app for a Chase card a few months later was approved with a $27,000 starting line. The point of writing all of that is that as long as your credit profile later improves, Chase is happy to restore and more.
That covers whether they can rebound if left open. As for whether the accounts will be closed, that really depends on what is going on with your accounts not just from Chase but others. Have you had recent late payments, collections that have appeared or reappeared, rapidly escalating revolving utilization?
@AverageJoesCredit wrote:Would help to know the context of why Chase is balance chasing, like any events happened to your credit/accounts leading up to such events. No one can tell you the deal unless they see what may have caused it.
From what I understand, CLD's aren't always because of the client. A bank must have enough resources to cover a certain percentage of the available credit they extend. For example, they might give me a credit limit of $20K even though they have only $6K available to pay the vendors. They know that I'm probably not going to use more than 30% of my available credit.
Then you want to get a credit card. They have already extended the max credit they can to me, so the available credit for yours needs to come from somewhere. They lower my credit limit to give room for yours.
Magnify this number to $$$ billions, and you've got the bank's problem.
Banks will sometimes lower CL's for this reason.
