Chase closed my credit cards

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Old Mar 5, 12, 5:17 pm
  #1  
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Unhappy Chase closed my credit cards

Chase suddenly closed all my credit cards due to "too many inquiries..."

I have had 5 credit cards with Chase (and 11 credit cards totally) since last September.

During the last six months, I replaced two chase credit cards, and two other bands credit cards after one year usage of them.
(The replacement here means closing one previous credit card and open a new one with the same credit limit)

In the last week, I found Chase closed all of my credit cards. The rep said this is due to "too many application inquiries recently..." and I have too many credit cards (11) during a short credit history (four years).

Is it possible to reactivate them? Who could we talk with?

I have had a saving account with chase for more than two years. Previously I also had a checking account with direct deposit with them, but closed it about six months ago.

Any advice will be greatly appreciated.
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Old Mar 5, 12, 5:43 pm
  #2  
mia
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Similar report here at post 491:

http://www.flyertalk.com/forum/credi...l#post18116434
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Old Mar 5, 12, 6:13 pm
  #3  
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Originally Posted by mia View Post
Have you contacted with anyone?
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Old Mar 5, 12, 7:55 pm
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Do you mind sharing what your usage pattern was? Did you just hit the minimum spend then move on to the next one?

If you opened 5 new cards within 6 months with Chase and you were just doing the bare minimum, that could be the reason.
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Old Mar 5, 12, 8:15 pm
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Originally Posted by drroot View Post
During the last six months, I replaced two chase credit cards, and two other bands credit cards after one year usage of them.
(The replacement here means closing one previous credit card and open a new one with the same credit limit)
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.
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Old Mar 6, 12, 3:43 am
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Originally Posted by longhorn11 View Post
Do you mind sharing what your usage pattern was? Did you just hit the minimum spend then move on to the next one?

If you opened 5 new cards within 6 months with Chase and you were just doing the bare minimum, that could be the reason.
I always pay the full balance.

Nope. I had 5 chase credit cards six months ago.
During the last two months, I replaced two chase credit cards with some other chase credit cards.

Any idea?
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Old Mar 6, 12, 8:24 am
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That's pretty brutal, they must have flagged you as risky or some.
Did you try calling them to figure it out?
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Old Mar 6, 12, 8:36 am
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Originally Posted by drroot View Post
I always pay the full balance.

Nope. I had 5 chase credit cards six months ago.
During the last two months, I replaced two chase credit cards with some other chase credit cards.

Any idea?
This is not uncommon.

Like AMEX, Chase continuously monitor your credit profile and will take action if they deem you risky.

Originally Posted by drroot View Post
During the last six months, I replaced two chase credit cards, and two other bands credit cards after one year usage of them.


Any idea?
This might be the reason. Chase might have determine that you apply cards only for bonus and will stop using them after you receive the bonus.

Also, Chase would likely denied your future credit card applications until your credit report no longer shows a pattern of flipping cards.
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Old Mar 6, 12, 9:54 am
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Originally Posted by drroot View Post
I always pay the full balance.

Nope. I had 5 chase credit cards six months ago.
During the last two months, I replaced two chase credit cards with some other chase credit cards.

Any idea?
So you're saying you already had 5 open accounts with Chase 6 months ago? Did you preemptively close your accounts? Or did you just transfer the credit lines when calling reconsideration?

As far as usage pattern, I meant for instance if you charge 3k to meet the spend, then quit using the card. If all of a sudden your usage pattern goes to zero and you keep spending on your new card that is going to trigger something internally.

If that's not the case, has anything changed on your credit report? I would think 4 years of history is fine compared to others that are getting 3-4 Chase cards with 2-3 years of history.
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Old Mar 6, 12, 1:52 pm
  #10  
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Yes. I already had 5 open credit card accounts plus 1 savings account with Chase 6 months ago. In the last January, I called the reconsideration dept, and an agent closed one credit card after my one year usage and transfered the credit line to the new chase credit card. In the last February, I did the same for another chase credit card.

In the last year, I also tried to apply three credit cards from other issuer but declined. I guess that's why bureau reported "too many credit inquiries..."

Any rescue for this?


I talked to a local Chase banker today, she told me that Chase will send me a letter explaining the reasons of deactivation in 7 days.


Originally Posted by longhorn11 View Post
So you're saying you already had 5 open accounts with Chase 6 months ago? Did you preemptively close your accounts? Or did you just transfer the credit lines when calling reconsideration?

As far as usage pattern, I meant for instance if you charge 3k to meet the spend, then quit using the card. If all of a sudden your usage pattern goes to zero and you keep spending on your new card that is going to trigger something internally.

If that's not the case, has anything changed on your credit report? I would think 4 years of history is fine compared to others that are getting 3-4 Chase cards with 2-3 years of history.
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Old Mar 6, 12, 2:25 pm
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Originally Posted by drroot View Post
Any rescue for this?


I talked to a local Chase banker today, she told me that Chase will send me a letter explaining the reasons of deactivation in 7 days.
What does your overall credit picture look like? What are your FICOs?

It sounds like they were just uneasy with all of the new credit you were seeking compared to your credit report. There has to be more to it than just a few inquiries.
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Old Mar 6, 12, 5:57 pm
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Originally Posted by longhorn11 View Post
There has to be more to it than just a few inquiries.
I agree, especially if three other applications with different issuers were declined.

I'd recommend checking the credit report to see if everything is in order. The FCRA allows for free checks of bureaus used to deny credit (or not give the best terms) within 60 days of the issue.
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Old Mar 6, 12, 10:47 pm
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Originally Posted by drroot View Post
I have had a saving account with chase for more than two years. Previously I also had a checking account with direct deposit with them, but closed it about six months ago.

Any advice will be greatly appreciated.
I suspect it also has something to do with your action of closing your checking account with direct deposit.
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Old Mar 6, 12, 11:59 pm
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Originally Posted by drroot View Post
Chase suddenly closed all my credit cards due to "too many inquiries..."

I have had a saving account with chase for more than two years. Previously I also had a checking account with direct deposit with them, but closed it about six months ago.
Sorry to hear about your experience and I am sure some of us can learn something from it.

I have a similar customer profile like yours with Chase. 3 cards in last 6 months and 1 card since 4 years. I use Chase as my primary checking account due to the Freedom bonus and mobile check deposit feature.

Maybe you can re-open a checking account and approach them again? For a basic checking account Chase is not all that bad. Maybe put just enough money in direct deposit to pay rent or mortgage.
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Old Mar 7, 12, 12:00 am
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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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