What's best way to decrease likelihood chase would cancel my accounts?
May 3, 2012 | 2:45 pm
#47
Join Date: Jan 2008
Location: SF Bay Area
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There is zero proof of this and I don't believe it for a second. Chase shutting down people's cards for high levels of regular spending? That makes no sense and would be a horrific business model--it would mean Chase is shutting down the accounts of those who make the most money for them.
In a sense, somebody with lots of charges who doesn't carry a balance is the worst kind of customer for them. No interest income, no ancillary fees, and a very high ratio between the miles or other benefits they have to hand out and the annual fee revenue they receive from that account. The CC companies do get some transaction fees, but most of it goes to the merchant processor and the interchange (Visa, MC, etc.). I'll bet in the end they break even on the more generous cards like Visa Sapphire.
May 3, 2012 | 2:55 pm
#48
Join Date: Jan 2008
Location: SF Bay Area
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Here is what I have a problem with here. Does it say somewhere that GC purchases violate T&C? It doesn't and Chase agrees, which is the reason that all the closure letters that people have posted do not point to a specific violation of T&C but, instead, give vague references to "rewards not used as intended" (what does this even mean? Is there something in the T&C about the intent of the program?).
I didn't personally put any GC purchases on any of my Chase cards but I don't like it when people start talking about non-existent T&C violations. I have no doubt that CC issuers did not intend for me to only put gas purchases and no other charges on CC's with 5% cashback. It is not a violation of T&C, however. If a CC issuer decides to close my CC for it, I suppose they have every right to do that but they don't have the right to falsely claim that they are doing it for any reason other then the fact that they are paying out more in cashback then they had intended to do. They don't have the right to portray their mistake in rolling out such a program as anything other than that. They certainly don't have the right to blame me for it.
I didn't personally put any GC purchases on any of my Chase cards but I don't like it when people start talking about non-existent T&C violations. I have no doubt that CC issuers did not intend for me to only put gas purchases and no other charges on CC's with 5% cashback. It is not a violation of T&C, however. If a CC issuer decides to close my CC for it, I suppose they have every right to do that but they don't have the right to falsely claim that they are doing it for any reason other then the fact that they are paying out more in cashback then they had intended to do. They don't have the right to portray their mistake in rolling out such a program as anything other than that. They certainly don't have the right to blame me for it.
Not that I think the credit card companies aren't a bunch of $#)%*#@s, but they're just doing what they're designed to do, make as much money as possible.
May 3, 2012 | 3:48 pm
#49
Join Date: Jan 2012
Posts: 757
Given that they are still earning $$ on interchange and are often able to procure points that we value at X for less than X, and/or commissions they capture from partners high quality credit folks are not necessarily not profitable. That said, its likely the people who are best at working the system are a drag on their returns, so logically they will look to cull where needed.
Pigs get fed. Hogs get slaughtered.
May 3, 2012 | 7:21 pm
#50
Join Date: Jun 2007
Location: SAN
Programs: PR Premier Elite
Posts: 1,951
Chase must REALLY like me then because I opened SEVEN Chase checking accts over the last few years.
Too bad the 25k Continental miles for Chase Checking is gone but the $200 checking signup bonus is still tempting.
Just building my relationship with Chase
Too bad the 25k Continental miles for Chase Checking is gone but the $200 checking signup bonus is still tempting.Just building my relationship with Chase
May 4, 2012 | 12:49 am
#52
Join Date: Jul 2001
Programs: Marriott LT Tit; Hyatt Explorist; Hilton CC Gold; IHG CC Plt; Hertz (MR) 5 star
Posts: 5,536
I view the reconsideration line as telling you that you're starting to look like a hog in Chase's eyes.
May 4, 2012 | 10:32 am
#53
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May 4, 2012 | 10:53 am
#54
Join Date: Mar 2012
Location: New York
Programs: Marriot Platinum, United Premier Silver
Posts: 39
I think people are losing sight of customer types. Perhaps those that pay fees by carrying balances, etc. are more "profitable", but they are significantly riskier in the bank's eyes. A customer that pays off balances in full, but spends a lot, is a very UNRISKY and well liked by the bank.
May 4, 2012 | 11:59 am
#55
Join Date: Dec 2010
Posts: 1,312
This isn't about customer "profitability" - that has nothing to do with why Chase will close accounts.
It's the opening of multiple credit cards throughout the year, imbalance between spending and income, maxing out your card then paying off the balance several times a month, $500 purchases at Office Depot or Stables twenty times a month, bla bla bla.
Don't try to "game" the system or you'll lose. My guess is that every single person who has had their account closed has had that account closed for good reason.
It's the opening of multiple credit cards throughout the year, imbalance between spending and income, maxing out your card then paying off the balance several times a month, $500 purchases at Office Depot or Stables twenty times a month, bla bla bla.
Don't try to "game" the system or you'll lose. My guess is that every single person who has had their account closed has had that account closed for good reason.
May 4, 2012 | 12:42 pm
#56
Join Date: Nov 2011
Programs: Amex Platinum, Marriott Platinum, SPG Gold, Hyatt Platinum
Posts: 240
Huh? Taking whatever actions will maximize credit card rewards while maintaining the same level of overall spending is the very definition of prudent financial management. It also is exactly what makes you unprofitable to CC issuers.
Absolutely and this reason is well known: people's prudent financial management is causing losses to CC issuers.
My guess is that every single person who has had their account closed has had that account closed for good reason.
May 4, 2012 | 12:44 pm
#57
Join Date: Nov 2011
Programs: Amex Platinum, Marriott Platinum, SPG Gold, Hyatt Platinum
Posts: 240
I think people are losing sight of customer types. Perhaps those that pay fees by carrying balances, etc. are more "profitable", but they are significantly riskier in the bank's eyes. A customer that pays off balances in full, but spends a lot, is a very UNRISKY and well liked by the bank.