Originally Posted by
am1996
Why do you say that? If you are causing Chase losses by maximizing good promotions, whether through sign-up bonuses or ongoing rewards, then it would follow that you would be at risk. The more you maximize your rewards payouts, the more losses you would seem to be causing, which means that the likelihood of getting hit goes up, doesn't it?
If, on the other hand, you are putting your charges on a no-rewards or a low-rewards credit card, not paying off your balances in full every month and subsequently paying interest on them, then Chase (and every other issuer, for that matter) probably loves you to death. Since we are having this discussion, then you are presumably not doing something like that though.
Uh, by your logic, there would be no reason for Chase to have rewards cards, because they only take losses on them and only want clients on no rewards cards that carry balances.
Yes. No rewards customers that carry balances are their most profitable clients by a long shot. As long as those balances eventually get paid, which is often less certain because those customers are often higher risk.
However, it seems clear they do want other types of customers, even if it means giving them rewards (that's the trade off for Chase--they are lower risk customers for Chase, though they may bring in smaller profits) and even if they pay off their monthly balance each month (which is the category I fall into). Or...Chase would have a whole lot less customers.
The customers that are at risk are the ones who fall into a very, very specific set of criteria that are only causing Chase losses, often by manipulating or gaming the system or outright committing fraud/illegal activities. I don't buy most of the other sob stories--we're only getting one very fragmented side of the story.
Is Chase infallible? No. Clearly not. They, like any other entity, are prone to making mistakes so maybe one out of 100 sob story is legitimate. But the rash of "OMG Chase Is Closing Down All Accounts...It Must be The End of the World Mayan-style!!!" posts are getting old and often muddy the waters with inaccurate information. And perpetuating these posts with hyperbolic statements like "Chase has been on a rampage as of late, shutting down people's CC's left and right..." only further creates an information dissonance, making it hard to parse through what is fact and what is fiction.