Originally Posted by
Gaucho100K
I pay the Ink card that has interest on balances in full, but I carry a balance on the cards that have a 0% APR during the bonus period.... its quite simple. What I dont get is, I can understand if I apply and Chase says no, but why would an application trigger an account shutdown if my current open accounts are all in good standing...? Am I missing something here...?
The concept I alluded to in my earlier reply is Bust Out. Six years ago, the reddit churning community did a deep dive into this, but it is generally believed most of the advice still applies:
Upon credit application, a risk assessment known as a BustOut Score is calculated to measure the likelihood an applicant matches an identified pattern of fraud where a criminal with a high FICO and exemplary credit behavior rapidly increases their number of bank cards before running up their balances and “busting out” before disappearing.
They go on to note:
This problem is particularly difficult for banks to address because people intending to bust-out have shared characteristics similar to those of the most favored and valuable credit card customers.
Reddit thread:
https://www.reddit.com/r/churning/co..._risk_factors/
What is most problematic about this pattern is how people intending to commit this fraud will keep high FICO scores, pay bills on time, etc., until suddenly they don't, while applying for many cards. It has a similar pattern to what can happen here, especially when you are carrying high 0% APR balances and not paying them off in full.
There are many reports in
our shutdown thread of what this looks like, in practice. One day everything will be fine, you will use your cards as usual, then suddenly all of your Chase cards are shut down and there is rarely an opportunity for appeal.