Originally Posted by
jphripjah
If Chase flagged someone as a card churner, why not just bar him from opening future accounts? Why close the accounts that he has already opened (and presumably met the spend on) unless it is just for punishment and deterrence?
That might very well come to that (hoping desperately to be wrong
)
But the reason Chase closes accounts is not to deter churning. For one reason or another Chase must consider you a credit risk in order to do that, and in that regard churning is the least of their problems.
How do I know? Before my last application for United I called Chase and asked them directly if I was running a risk of having my accounts closed (holding 6 other Chase cards I believed I had a good reason to fear that). The CSR checked my accounts and said there were no problems with them. She encouraged me to apply and noted they would never close an account without a good reason. What they consider a good reason is unclear, but churning ain't that. On the other hand, I believe that putting cards in a sock after getting bonuses is like asking for trouble. Make small purchases if you must but do make some on a regular basis, because even it they don't monitor this kind of behavior just yet, they certainly will soon enough.