Originally Posted by
joe_miami
There’s no way Chase closed your accounts because you used 60% of your credit limit and then paid it off.
I would not be so sure about that. While not Chase, Barclays definitely isn't so considerate.
No, banks do not want you to use up your
large CL on a constant basis, even if you pay in full every statement cycle.
Banks dont treat all CLs, size big or small, equally. It is all about risk models.
While the banks extend CLs, they definitely dont want you to use a good portion of it month after month, if the CL is a sizable amount. Ironically they dont care much if it is only a few thousands even you cycle it - because high CLs mean high exposure on the risk scale, far more so than a below 5K CL.
Originally Posted by
snic
Maybe it was that plus 18/24?
I mean, opening 18 credit card accounts in 2 years is extraordinary. Yes, other people have done it, and it might even be common among a small group of FTers. But combined with anything else that looks suspicious, it might cross a threshold.
Agree.
In the last couple years, yes,
this can be a factor especially coupled with high utilization ratio on a high CL. It can be viewed the cardholder is in some sort of desperate need for unsecured credit.
My feeling is, OP has summed up the most likely factors that led to the eventual closure,
except the 500K UR balance. Given Chase has several billions worth of outstanding UR pts, I doubt 500K would be a factor as this is just $5K, a drop in the billions bucket. OP also said he has been saving the UR pts so 500K over several years is not unusual.
Over 30 to 40% utilization of a large CL
month after month even the balance is paid off on time never incur any late payment or interest charges, would still be a red flag to trip wire. Others may disagree but this is the model I would go by.
In fact I suspect if the outstanding is paid down midcycle, but never cause recycling of the CL, may prevent the account being flagged versus letting the statement closed at 60% utilization, for months on end.