Chase closed my credit cards

Old Mar 7, 12, 9:02 am
  #16  
 
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Originally Posted by dieuwer2 View Post
Better not to close a credit card and open a new one. I suggest converting an old card into a new card (with the same issuer). That way, you keep your history.
In most cases, you will not get the signup bonus for just converting, you need to actually open a new account/(cc).
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Old Mar 7, 12, 9:07 am
  #17  
 
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Originally Posted by chatterbox22 View Post
In most cases, you will not get the signup bonus for just converting, you need to actually open a new account/(cc).
I think what he meant is that he applied for a new card, and offered to close/convert whatever and transfer the CL from an old card to a new card.
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Old Mar 7, 12, 9:38 am
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Originally Posted by compddd View Post
I think what he meant is that he applied for a new card, and offered to close/convert whatever and transfer the CL from an old card to a new card.
Possibly. But he says the point of converting is to "keep your history". I don't think the history would be any different wether you close the cc while opening a new, pr if you do it beforehand.
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Old Mar 7, 12, 1:48 pm
  #19  
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Originally Posted by dieuwer2 View Post
Better not to close a credit card and open a new one. I suggest converting an old card into a new card (with the same issuer). That way, you keep your history.
Yes, but you get no bonuses. I presume the only reason the OP was opening and closing so many cards was to "churn" for lots of bonuses. That is not possible if you "convert" cards.

The basic problem of the OP was apparently being too aggressive with churning while having too new a credit history. Just because someone with a multi-decade credit history can churn a certain amount forever does not mean person with a few-year credit history can. Just because a person with a short credit history may be able to churn a bit does not mean that they won't suffer consequences if they "push it" too far.

And as this thread indicates, the consequences may not be immediate, so the churner may not realize they've churned "too aggressively" until "too late".
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Old Mar 7, 12, 7:02 pm
  #20  
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I received the letters from chase today.

The reasons listed are:
1. Existing accounts not open long enough
=> I don't understand this since my membership with Chase (the previous Wamu) since July 2008

2. Not enough information on bankcard accounts
=> Maybe this is due my two Amex charge cards, which have no credit limit by default. But Amex do setup a limit for me several months ago.

3. Too many accounts opened recently
=> During the last 5 months, I only replaced two credit cards from Chase, and none from other issuers.
Although in the last November and December I attempted to apply three credit cards from different issuers, all new applications were declined.


I requested the credit report from Experian, and expect to receive the letter within 10 days.


Any good website provide free or cheap credit report?
creditkarma shows only few records in the days when we logined in their website.

Originally Posted by birdseye View Post
I seriously doubt there is any way to reopen your closed Chase credit cards since Chase has decided you are a credit risk. But you can certainly call Chase to argue, hopefully after receiving their reasons in writing.

I would also get a copy of your credit report and see if there are any errors to correct. Check how many credit inquiries you have on each credit bureau. You'll want to take a break from credit card applications and focus on improving your credit. Accounts closed by the bank can hurt your credit, so I would argue to have the closure listed as "closed by consumer" on your credit report if at all possible.

It sounds like you did not wait 90 days between credit applications which is frequently recommended on these boards. Not that that is a reason to close your accounts, but it contributes to your high number of recent credit inquiries.
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Old Mar 7, 12, 8:18 pm
  #21  
 
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Originally Posted by drroot View Post
I received the letters from chase today.

The reasons listed are:
1. Existing accounts not open long enough
=> I don't understand this since my membership with Chase (the previous Wamu) since July 2008

2. Not enough information on bankcard accounts
=> Maybe this is due my two Amex charge cards, which have no credit limit by default. But Amex do setup a limit for me several months ago.

3. Too many accounts opened recently
=> During the last 5 months, I only replaced two credit cards from Chase, and none from other issuers.
Although in the last November and December I attempted to apply three credit cards from different issuers, all new applications were declined.


I requested the credit report from Experian, and expect to receive the letter within 10 days.


Any good website provide free or cheap credit report?
creditkarma shows only few records in the days when we logined in their website.
What was on credit karma and what was the score? That is basically your Transunion report.

How many accounts did you have before adding additional Chase cards? If you only had one account (former WaMu), then in the last year added all of the Chase and Amex cards that is probably what did it. Also if Amex put limits on your charge cards you obviously had a financial review, so something else is going on.
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Old Mar 7, 12, 8:44 pm
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Originally Posted by drroot View Post
Any good website provide free or cheap credit report?
annualcreditreport.com will let you pull a report once a year for free from each of the big 3 (experian, equifax, transunion).

You could also have gotten your experian report for free online. If you google "experian fcra" there's a link that allows for the "negatively impacted" free credit report to be gotten online. This can be done with equifax too, and probably transunion, though I have never tried.
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Old Mar 11, 12, 1:11 am
  #23  
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Originally Posted by drroot View Post
I received the letters from chase today.

The reasons listed are:
1. Existing accounts not open long enough
=> I don't understand this since my membership with Chase (the previous Wamu) since July 2008

2. Not enough information on bankcard accounts
=> Maybe this is due my two Amex charge cards, which have no credit limit by default. But Amex do setup a limit for me several months ago.

3. Too many accounts opened recently
=> During the last 5 months, I only replaced two credit cards from Chase, and none from other issuers.
Although in the last November and December I attempted to apply three credit cards from different issuers, all new applications were declined.

I am afraid your history with WAMU does not really count. What Chase sees you is from the date you get a real Chase card, not from the old WAMU card converted to a Chase card after WAMU went under. WAMU, like it or not, is being viewed as a bank generated bulk of its business from the lower end of the credit market (sort of like C1's image though not as bad.)

How many years of credit history you actually have?

As someone posted upthread, those who have only a few years of credit history initially could get lots of cards when they started out their "game" but without a solid history (like over 10 years) and especially long history with a particular issuer, their initial successes of grabbing bonuses may come back to haunt them.

Once the bank closes your accounts, it takes a very long time to be able to do business with that bank again. It also leaves some bad marks on your credit report as the accounts are closed not by customer but by the bank. (involuntary closure).

I would suggest you talk to Chase again on No.1 and No.2. You have no argument to do with No.3.
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Old Mar 11, 12, 7:48 pm
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There's a good thread on Dan's Deals containing reports from people with similar experiences with Chase closing their accounts. You might find some help there. A few of the guys reported that they were able to get Chase to reopen their accounts. So, there's hope, but it does sound like a PITA.
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Old Mar 11, 12, 8:13 pm
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By far Chase is the most difficult card company. I have dealt with them all. Burned a few times by Chase. And I have AAA+ credit and virtually no hassles over the many years in various programs. They are the worst.
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Old Mar 11, 12, 8:15 pm
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Happy's points are well made, as usual. It's a lot easier for me at 58, with a long and good credit history, to churn cards than it is for someone at 25 or under. Creditworthiness is maybe the ultimate YMMV, but a factor that works in favor of the older churner is simply that banks probably don't expect this kind of behavior from us. I had taken five credit cards, in total, from my first in 1982 to 2010. In the last eighteen months, I've taken ten. Of course, that's really nothing compared to most folks on FT. But, it's still a lot more than the average consumer.

As I believe that financial institutions will eventually figure out that they don't want customers who take cards only for the bonus and then cancel before the annual fee is due (which creates a huge number of new accounts, one metric the banks measure, but eventually creates huge card turnover, which they probably don't want), I think that banks will eventually rewrite their standards to make it more difficult to do churning, even for folks with a good credit history, and to encourage holding cards longer. To me, Chase has begun this process with retention bonuses built in (Sapphire Preferred, 7% annual bonus; Southwest, 3000 or 6000 point annual bonus depending on card taken). Barclay's has followed with the US card's 10K annual bonus. Others are sure to follow.

Still no reason not to take advantage while we can. . .
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Old Mar 11, 12, 9:11 pm
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UR Points lost as well?

OP lose his UR points accumulated as well?
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Old Mar 11, 12, 9:18 pm
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OP do you carry a balance on your Chase CCs?
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Old Mar 12, 12, 1:44 am
  #29  
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Originally Posted by cazic99 View Post
OP lose his UR points accumulated as well?
From an actual case I have learned about, Chase actually is pretty good in letting you have your UR pts. In fact in a particular case when the Chase closed the accounts, the cardholder had not quite yet meet the spend requirement on the SP, but Chase actually sent a $500 check despite closing all the accounts. My guess is, banks are walking a fine line - they want to mitigate their exposures in credit risk while they need to make sure they are not sued or being complained to the government agencies for deceiving customers with sign up bonuses only at the end closing customers' accounts citing "business decision".

I have also learned about similar approach by BofA recently.
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Old Mar 12, 12, 10:26 pm
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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?
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