mia

My guess is that the database from the predecessor bank was not integrated into Chase's system when they approved the previous card, but it is now.

EasternTraveler

What should she do if anything? Will they bring it up again? I really don't know what to tell her, I have never had any type of similar experience.

roberto99

I would suggest to her to never apply for another new Chase credit card.

happyvoid

did you asked what caused the initial shutdown?

bwiflyer01

I did to a few different people, but got stonewalled. I still have my Chase credit card accounts open and am able to access them online.

larciel

so you got shut down but was able to revive the account? or just your online access for other accounts that wasn't shut down?

GundamWing01

something doesnt make sense. ive read your story from last year, but are there any updates? your deposit accounts were closed, but you still have your CC and online access? that sounds to me like a situation where you could get reinstated because you didnt MS, MO, or make any cash deposits. however, its been so long, maybe your chances are slim now. but i know you had tried to get your accounts back with no luck. thats a shame.

chase usually DGAF and their decisions are unilateral. if chase really wanted to ban you, your CCs for sure will be closed by now. not to mentioned plenty of DPs with auto-account closure via algos that go to manual review upon request and are reinstated if the account is "clean enough". i think your depo accounts getting closed was a mistake and should have gotten reinstated.

gizayabasu

Just had a couple general questions about shutdown. What exactly triggers shutdown? Is it normally new CC applications and weird checking account activity? Does closing CCs trigger anything?

Also, when applying for new cards, what matters the most? Velocity? I only apply every few months, but I do have around 50% CL and multiple Chase cards (6+). If I were to apply for a card, months spaced out from one another, and lower my overall CL to <50%, should I be in the clear, given that I don't really have any weird activity? All just organic spend?

GundamWing01

while your questions are valid, they have been covered extensively via numerous blog posts, reddit, and FT threads.

for example:
Chase Credit Cards Closed Due to Too Many Accounts and Inquires
Chase Shutdown Player 2 - Number of Inquires and Request for Credit
Chase Shutdown Player 3 - Too Many Request of Credit

Player 3 Chase Account Reinstated After Shutdown Due to too Many Inquires or Accounts

since chase is a very popular starter bank, there are many more.

gizayabasu

Right, my question is more the "too many accounts". I have a lot of accounts because of just having a long history and a bunch of hotel cards. But I don't apply to many cards these days as a whole. Just that I'm way beyond the 24/48 months for basically everything and I'm at a point where I can cancel old cards and apply to new cards. Of course I've been good with paying my annual fees and keeping cards, just wondering if a one-off application just for some bonus points would screw my relationship with Chase just because I have a lot of cards.

mia

The world has changed in the last two months, the USA has changed in the last two weeks., and that includes credit card risk assessment. Card issuers are seldom focused on rewards. Now, they are laser focused on credit risk. Is your income secure? Have you lost asset value? Is the total amount of credit that you have with Chase in proportion to that income? Have you changed the way you use cards? People who NEVER carried a balance will start making only minimum payments in April because they are abruptly unemployed. Look at yourself as a BORROWER, because that's what you are, and that's what Chase will see.

GundamWing01

the first blog post link is literally about shutdown from "too many accounts". but we need more info.

it would help to provide more background on your stats. are you saying youre 0/24 or 0/48 now?
what is your new accounts and inquiries for x/6, x/12, x/24, total number of active CC shown on CR, AAoA, number of chase CC personal/biz, chase deposit accounts?, last chase app, chase CL % compared to income?, do you MS any chase CC? any large balances on CR like unsecured debt or mortgage?

totally agree. if/when FICO Score 10 and 10T become heavily adopted/preferred by financial institutions to assess overall credit risk over a historical period, it may change the game after this global crisis. credit/default risk will definitely be higher priority. more than it is today.

EDIT: i also forgot to mention another tool called "UltraFICO". its so stupid, i hope its never taken seriously.

gizayabasu

I'm less concerned about actually having any actual changes on my side, but you're right that the landscape could change as a whole. Just trying to avoid those usual "red flags" that would trigger a shutdown.

gizayabasu

1/6, 1/12, 1/24, but probably 0/24 by the time I apply. Closer to lol/48, but not sure if that really matters. Do have a good number of Chase cards, but will get it down to like 7 or 8 before applying with intention of <50% CL, have Chase checking and mortgage, last approved for Chase within the past 6 months (pretty sure I was >50% CL at the time too, since I was out of this game for a while and just did it arbitrarily), and don't MS.

GundamWing01

you have a solid profile. as a general statement, you have nothing to worry about when applying for another chase card with your stats. its very low activity. any shutdown would be reversed and reinstated as a "bank error". ive seen much much worse getting multiple CIPs and doing MDD sapphire, MS, super high x/24, etc. who get reinstated. but your concerns are valid based what ive seen with chase algos auto-banning people which leads to manual review then eventually perm ban for stupid reasons.

so youre wondering if chase will flag your account simply because you have many trade lines reported on your personal CR? well, its not a straight yes/no.

1) if youre getting another chase card at 0/24 then youre totally fine. youre at 1/6 right now? so are you going to cool down personal apps for 24mo then app chase again? 100% biz apps only? was your last chase card personal or business? instant approval? its good practice to wait 3-4 months per chase app, but that really depends on what other items are on your CR.

2) 0/24 is very low activity, but whats your AAoA? you said "LOL/48". not sure whats your definition of LOL/48, but does this mean you have many cards 3-4 years ago? lets say you are around ~40+/48, but 0/24. typically, this means you have a very low AAoA which is a red flag chase will look at. not a deal breaker, but you dont want manual reviews.

3) having many chase CCs is not an issue unless youre overall credit exposure doesnt match your income and have "too much credit extended" with other institutions. if youre less than 50% CL vs income, youre totally fine. you also dont MS. thats a huge plus. of course, as you increase the number of chase cards, there is always more risk of manual review which leads to a shutdown, but it depends how old your accounts are. AAoA and app velocity matters as well as CC spending activity. everything has to be at a "mild" pace.

4) what does your chase spending look like? you said no MS, but do you have huge legit spend? max out CL? do you cycle? or make multiple small payments on your CC within a billing cycle? even worse if you make multiple payments from different financial institutions.

5) do you have other debt besides your mortgage? any other large balances reported on your CR for CCs? chase hates unsecured loans/credit eg CC debt, especially when its past 10%-20% of income.

6) any MO or cash volume within you deposit accounts? do you use WMBP for any CC? or anything like receiving/paying/wire funds with over 3 to 5+ different financial institutions? any international wires? do you have multiple funding sources depositing funds into your checking account (aka too many different ACH in/out)? chase hates all of that.

7) have you filed many disputes with chase against a merchant such as charge backs?

8) are you associated with anyone who has been shutdown in the past? anything related to referral links, AUs, point transfers, or similar home addresses etc? when it comes to shutdowns, chase is the FBI / NSA / CIA all combined.

9) anything negative on your Chex?

if nothing above really applies to you, then youre fine. essentially youre a clean slate like a n00b and should proceed with caution as a n00b because chase doesnt like seeing any type of "ramp up" from 0/24 to LOL/24.