Chase closed my credit cards
Mar 7, 2012, 9:02 am
#16
Join Date: Jan 2012
Posts: 6
In most cases, you will not get the signup bonus for just converting, you need to actually open a new account/(cc).
Mar 7, 2012, 9:38 am
#18
Join Date: Jan 2012
Posts: 6
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.
Mar 7, 2012, 1:48 pm
#19
FlyerTalk Evangelist
Join Date: Jan 2005
Location: home = LAX
Posts: 25,934
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".
Mar 7, 2012, 7:02 pm
#20
Original Poster
Join Date: Jun 2010
Posts: 34
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.
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.
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.
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.
Mar 7, 2012, 8:18 pm
#21
Join Date: Aug 2011
Location: DFW
Programs: AA PLT, HH Gold, SPG/Marriott Gold
Posts: 1,091
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.
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.
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.
Mar 7, 2012, 8:44 pm
#22
Join Date: May 2008
Posts: 143
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.
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.
Mar 11, 2012, 1:11 am
#23
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,763
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.
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.
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.
Mar 11, 2012, 7:48 pm
#24
Join Date: Feb 2010
Location: Disney World
Programs: Fairmont Lifetime Platinum, Hyatt Globalist, AA Lifetime Gold
Posts: 321
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.
Mar 11, 2012, 8:13 pm
#25
Join Date: Dec 2001
Location: Coconut Creek, FL
Programs: AA Lifetime Platinum-2 MM Starwood Plat,Delta DM
Posts: 975
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.
Mar 11, 2012, 8:15 pm
#26
Join Date: Aug 2010
Location: ORF
Programs: Amex Plat, AA, BA Silver, Marriott Plat, Choice Gold, HHonors Gold, IHG Diamond
Posts: 3,749
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. . .
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. . .
Mar 11, 2012, 9:11 pm
#27
Join Date: Jun 2011
Posts: 315
UR Points lost as well?
OP lose his UR points accumulated as well?
Mar 11, 2012, 9:18 pm
#28
Join Date: Jun 2011
Posts: 315
OP do you carry a balance on your Chase CCs?
Mar 12, 2012, 1:44 am
#29
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,763
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.
I have also learned about similar approach by BofA recently.
Mar 12, 2012, 10:26 pm
#30
Join Date: Jan 2009
Programs: Hilton Diamond, IHG Spire Ambassador, Radisson Gold, Hyatt Discoverist
Posts: 3,623
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?