Originally Posted by
Lobachevsky
And you know the cause is CL cycling how, exactly? Do you think that if you used a non-rewards card with the same CL cycling you'd be closed down? Banks love to see extensive card use--as long as that use is profitable to the banks.
You're not considering a Bank's Government Regulatory Requirements under the BSA,
"Bank Secrecy Act", I.E.
"Know Your Customer".
Don't assume ALL Credit Card shutdowns are in any way related to a bank's perceived rewards losses.
Most banks issue Credit limits based on a combination and consideration of the external risk model they purchase from FICO, their own internal risk model, and the prospective customer's DTI, (Debt-To-Income Ratio).
If a prime borrower. (based on Internal/External risk model scores), tells a bank they make $100,000/year, is then issued a Credit card with a $20,000 credit limit, and then proceeds to charge and pay back in full their full pre-tax annual income reported in a single month, (perhaps repeated for several months in a row). What exactly should the bank conclude from this activity?