longhorn11

I believe this is the reason. Also just because Chase found out doesn't mean he/she will stop churning cards with other issuers (still seen as a "potential credit risk").

mnscout

That might very well come to that (hoping desperately to be wrong)
But the reason Chase closes accounts is not to deter churning. For one reason or another Chase must consider you a credit risk in order to do that, and in that regard churning is the least of their problems.

How do I know? Before my last application for United I called Chase and asked them directly if I was running a risk of having my accounts closed (holding 6 other Chase cards I believed I had a good reason to fear that). The CSR checked my accounts and said there were no problems with them. She encouraged me to apply and noted they would never close an account without a good reason. What they consider a good reason is unclear, but churning ain't that. On the other hand, I believe that putting cards in a sock after getting bonuses is like asking for trouble. Make small purchases if you must but do make some on a regular basis, because even it they don't monitor this kind of behavior just yet, they certainly will soon enough.

Rommie2k6

I've been reading about many reports lately of how Chase goes berserk and close all your accounts for no good reason.

Does anyone know what triggers these kinds of actions? Too much total CL relative to income? Too high a utilization? Opening too many cards per year?

Also, is this phenomenon Chase specific, or has other card issuers been known to go berserk on their customers?

mia

No, American Express has a process called a Financial Review which is widely discussed in the Membership Rewards forum. Typical thread here:

http://www.flyertalk.com/forum/ameri...on-merged.html

A credit card is an unsecured line of credit. Essentially, American Express requires you to provide evidence that you have the means to continue to pay, which is distinct from having a track record of payment.

Similarly, Citibank asked some Chairman card holders, including me, to provide proof of financial assets to keep the card, but they did not suspend it while waiting for the documentation.

pcharles

You should switch your user name to "The Chairman", you've earned it. ^

sunk818

> close all your accounts for no good reason.

I doubt banks go around closing accounts "for no good reason". I can think of a lot of reasons why people who habitually spend the minimum to receive the bonus would get blacklisted. Let's say a Visa Signature card's interchange is 2% for simplicity sake. When you get a Chase Sapphire Preferred and spend $3,000 to get $500, Chase has only made $60 interchange through the merchant processor. They gave you $500 bonus which means they have a net loss of $440. In order for them to recoup the $500 bonus payout, you will need to spend $25,000. If Chase does not predict you will do this for the life of the card, then I could see them blacklisting "bonus abusers". The easiest way to predict a "bonus abuser" is someone that spends a little past $3,000 then stops using the card. It'd be easy to calculate a "bonus abuser" score based on spending pattern.

longhorn11

There always is a reason. Some people abuse the application process (6-8 apps every few months) with little credit history. Or it could be as simple as someone making an income that is not proportionate to their amount of available credit. Example: someone making 25k a year who has somehow gotten 100k of available credit. Also as sunk818 said they can easily track a persons spending pattern and that goes both ways. Whether they are just spending for the bonus or if something in their credit/financial situation has changed.

I think sometimes we don't hear the full story of people who get shut down by Chase or others. Just my opinion. Now watch all of my Chase accounts get shut down for no reason after posting this!

schuby527

Chase closes all your accts when you take them up on their 5% UNLIMITED cash back for the first 6 months-they close your accts if you receive too much cash back-and they close it right before your statement closes and refuse to honor your rewards! so you lose! Chase is doing this like crazy right now.

Jesperss

I'd love to see just one of your credit card statements for that card.

Care to post your transactions for a month?

robertw477

I have never seen any other card company like Chase. They are miserable. Any bonuses you get, you need to spend immediately or talke a chance if they close you, they take the points. I had several bad situations from them and I have AAA credit and do huge volume with a lengthy credit history.

SAYHEY

I'm on my 2nd CHASE AARP card and have suffered no adverse action to date. Last year I cleared $3700 in 5% cashback. I've used the card primarily for personal expenses and have avoided "red flags" like purchases of gift cards. I'll be paying $40K in estimated taxes with the card this year via payusatax.com and will realize around $1200 cashback ( 5% - 1.89% fee).

Unfortunately, CHASE has closed new applications for the 5% promotion but is still offering 3% cashback on travel expenses and 1% on miscellaneous.

btw, you DON'T have to be an AARP member or be over age 50 to get the card.

Good Luck,

beltway

Conviction on multiple counts of federal wire and mail fraud is normally enough even for Chase to sit up and take notice.

UA Fan

This is getting me nervous, I want to apply for the Sapphire card next month. I have 3 Chase accts, one savings and one checking. No inquiries in the past six months.

cazic99

It's very odd.

Happy

I dont think you have anything to worry about especially you have no inquiry in the past 6 months, and you routinely use your Chase cards. No need to be big usage, just not "put it in the sock drawer" type of treatment. It is always a good practice to use a card every 2 - 3 months to keep it active.