Yikes! On the chopping block with Chase!

[Anonymous]

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@bourgogne wrote:

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@Anonymous wrote:

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@jwa77 wrote:

Whoa..okay new guy here, not getting what the >>>>> would even prompt an AA on a card that has never had any problems.  What is this crap?

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I guess the "problem" was perhaps I just got too close to the limit (even though I'd "spend & send" BEFORE the payments were even due) -- for example...I'd spend $827.92 for Airline tix $827.92, then send $827.92 next day. Never late, never over-limit, or any other issues I can think of. :-/

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I have not followed your saga but a few things.  you will never know why anything really happens with credit and if you just use the card and make a single payment before the due date for the full amount you will have zero or next to zero issues.  have a small bal report on one card if you want to keep your scores up.  no cash advances, no bal transfers, no making payments.  just use it and pay it back as fast as you can.  the faster you repay the lender the lower the risk you are.  this is not a game.  treat it like your drivers license.  just my .02

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.02 taken...thank you. :-)

[sarge12]

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@Anonymous wrote:

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@NRB525 wrote:
I had balance chasing on several Chase cards, and Citi and BofA. With high utilization, it is a risk with most lenders.
I've definitely learned my lesson with the high utilization.
What is your plan for pay off of these balances? Are you paying full-rate interest? I took my time paying everything down, but most of the balances I had were on what I considered reasonable interest rates.
I was SO furious with them, I paid the majority of them off within a few months.

Do you carry balances on other cards? Can you list out your cards, limits, and last statement balances? Banks look at your overall balances through soft pull, so that can be a factor as well.

I did have a high balance on my PenFed at the same time which I believe is the reason Chase got nervous. PenFed, however, didn't flinch, but I quickly paid them down as well!

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Credit cards are best if used only to obtain rewards or as a convenient way to pay for things that you would buy even if you did not have a credit card. Carrying a balance on a credit card is expensive and dangerous. I always PIF...every single Month. If carrying a balance is necessary, then I would have to figure out why I was living above my means. Credit cards usually have an outrageous APR or provide no rewards. If there is a need to finance something, thare are usually ways to borrow that are much lower interest. The only exception to this is when there is an introductory 0 interest balance transfer option. I have not paid one cent in credit card interest in over 20 years. They are great for emergencies, but only to buy you time to get a less expensive loan, or transfer funds from savings. The problem many face with credit cards being used for emergencies, is that it causes a vacation to become an emergency as well as the 70 inch TV that is on sale. It is also not a very good idea to set yourself up where a credit card issuer can cause major credit score drops by lowering your credit limit. It is best to have the ability to tell any credit card issuer, at any time, to stick their card where the sun don't shine, without tanking your credit score. Life is way too short for me to allow credit card issuers to have the power over me that credit card debt gives them. They can cause the debt to be further prolonged if they decide to raise the interest rate or tank my scores if they lower my limit? I don't think so!!! I hope they know better than to require me to send them a 4506-T...that will be a cancel my card for sure reply.

[mikesonthemend]

So much better to get your shame and guilt from an online forum, than from your banker.

That what I am trying to learn at least.

[KatieKatie]

I don’t disagree with the advice that’s been shared from a financial responsibility standpoint, but I honestly wonder why the banks and financial institutions that are so adverse to risk related to utilization and revolving balances don’t simply offer charge cards only instead of revolving credit cards.

[Remedios]

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@mikesonthemend wrote:

So much better to get your shame and guilt from an online forum, than from your banker.

That what I am trying to learn at least.

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@mikesonthemend wrote:

So much better to get your shame and guilt from an online forum, than from your banker.

That what I am trying to learn at least.

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Could you please clarify? 

I do not see any shaming. 

[mikesonthemend]

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@Remedios wrote:

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@mikesonthemend wrote:

So much better to get your shame and guilt from an online forum, than from your banker.

That what I am trying to learn at least.

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@mikesonthemend wrote:

So much better to get your shame and guilt from an online forum, than from your banker.

That what I am trying to learn at least.

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Could you please clarify? 

I do not see any shaming. 

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Certainly. I did not mean to imply any harm was meant by any poster. I was entirely referencing the emotions I experienced when receiving similar commentary regarding my credit behavior. I am sincere in my statement. I believe it is a sometimes hard to hear value of this community. So much better to hear hard cold reality here, in this forum, than sitting across the desk from the person denying you credit.

No offense meant, at all.

[Remedios]

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@mikesonthemend wrote:

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@Remedios wrote:

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@mikesonthemend wrote:

So much better to get your shame and guilt from an online forum, than from your banker.

That what I am trying to learn at least.

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@mikesonthemend wrote:

So much better to get your shame and guilt from an online forum, than from your banker.

That what I am trying to learn at least.

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Could you please clarify? 

I do not see any shaming. 

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Certainly. I did not mean to imply any harm was meant by any poster. I was entirely referencing the emotions I experienced when receiving similar commentary regarding my credit behavior. I am sincere in my statement. I believe it is a sometimes hard to hear value of this community. So much better to hear hard cold reality here, in this forum, than sitting across the desk from the person denying you credit.

No offense meant, at all.

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There is no reason to feel shame at all.

If anything, those of us commenting should be the ones mindful in how we present  these "truths" as they are never absolutes and also be mindful of making it appear as if we're all piling up on a same person, repeating same lines every two minutes or so. 

Whatever happened, happened. You're here to do better for yourself. That's great in my book 

[mikesonthemend]

Point taken. I did not mean to "project" my emotions on the OP/

[Remedios]

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@mikesonthemend wrote:

Point taken. I did not mean to "project" my emotions on the OP/

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It's ok, no one is saying you did. 

[Anonymous]

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@KatieKatie wrote:
I don’t disagree with the advice that’s been shared from a financial responsibility standpoint, but I honestly wonder why the banks and financial institutions that are so adverse to risk related to utilization and revolving balances don’t simply offer charge cards only instead of revolving credit cards.

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In my opinion, I wouldn’t characterize lenders as adverse to revolving balances. Lenders are, instead, adverse to the risk of not being paid. 

Carrying a reasonable balance for a bit on a low percentage of cards (or a low-ish percentage of aggregate CL across all lenders) will most likely not set off too many adverse actions. Having a large number of cards with high revolving balances (or a high percentage of aggregate CL) May set off adverse action. 

Lenders are not patently against revolving balances. After all, those that carry a balance are a source of income to them (interest).  If someone starts carrying a high balance on multiple cards, however, this leads the lender to think there may be an income issue and their risk is now increased. 

I wont argue that PIF is the way to go, and I haven’t paid a cent or interest in years, but people also shouldn’t be afraid to carry a responsible balance if the situation calls for it.