dmlee18

Having two UA MP Chase Visa cards, I wanted to roll over my credit from the card with the smaller limit (only had for 6 months) to the larger one, increasing my overall limit to somewhere in the neighborhood of mid-20K.

When I spoke with the Chase rep over the phone she first asked for some info (income, employer, etc) to do a "review" (didn't realize she looked up my credit history until after the fact).

After a couple minutes, she came back and said while I had excellent credit she would not be able to merge the credit cards. In fact, due to the new credit card laws regarding income-to-available credit ratios, she had to either: 1). reduce the limit on my larger card and then merge the cards OR 2). allow me to keep the limit on the larger card and cancel the smaller card, thereby forfeiting about 5K in available credit (and the latter was only an option that was offered given my great (i.e. long) history with Chase).

Frankly, I felt a little blindsided by this. So she wouldn't take any action tonight, I asked for a supervisor to give me call back in the morning.

So, I have two questions:

1. CAN Chase do this (reduce my credit despite a near perfect FICO score and long history with the company)? Again, the rep said given my income to available credit ratio, the new cc laws requires Chase to reduce credit limits to reasonable levels on individual accounts. As some sort of consolation, the rep mentioned that this would have happened "eventually", but since I called in, my account underwent this review. [On some level this makes sense to me, but I'd feel better if there is some precedent for this]

2. The rep mentioned in her 20+ years in this business, that I was the first to mention my concern in undergoing a credit check (albeit a "soft" one) without an explicit request to allow one. She had said she was just doing a "review". Furthermore, she said Chase's policy does not require specific consent for these soft reviews. Is she right?

^ To be fair, the Chase rep was professional throughout the call, was very nice and did seem to sympathize with my situation. But she indicated her hands were tied.

FriendlySkies

Might be best to ask the experts in the CC forum for help.

http://www.flyertalk.com/forum/other...-programs-599/

wanaflyforless

FYI - I have had similar experiences when asking to consolidate lines of credit. Chase, Citibank, and Amex. I don't like them pulling my credit file for something like that - but yes, they do.

dmlee18

Thanks. Was this a trend you noticed recently (within past year)? In the past, I've had no trouble combining Chase cards and watching my credit limit rise.

wanaflyforless

I have not tried in last year.

I have at times been able to combine credit lines after they pulled my report...Perhaps they pulled your report previously and you never knew.

CaliC

Of course they can. They can raise your limit, lower your limit, or flat out close your account. Chase is notorious for screwing customers and not in that fun way.

Chase indiscriminately closing credit card accounts.

Chase closed my account (credit card) without notice.

Flyertalk - Chase closed two of my accounts.

Chase lowered my limit without notice

Cali

anc-ord772

Interesting thread. It's hard to know what to expect because most people have different experiences.

At the end of March I tried to increase my credit limit on my Chase Priority Club card. I was declined. I called the same day and was able to move the entire credit line from one of my United Sig Visa (closing the card) to the PC card without much hassle. They did ask me the questions and pull a report, but I ended up with the result I desired.

YMMV.

tlawrence85

It doesn't seem like the law requires consent of any kind for "soft" credit inquiries, only "hard" ones. The law (Section 604 of the Fair Credit Reporting Act) only requires a permissible purpose for doing so. For instance, a company can conduct a soft credit check before sending you (unsolicited) offers of credit via mail. This is apparently considered a permissible purpose.

indo79

Had a similar experience when I called to consolidate and move credit around

http://www.flyertalk.com/forum/16206298-post389.html

dmlee18

Thanks. Very helpful. Had an inkling that Chase would eventually step in and cap my limit. Just surprised at the suddenness of it.

Oh well.

Still think reps should disclose that they are checking one's credit history (whether soft or hard). Seems at least the polite thing to do...

dmlee18

Quick update:

As promised, a Chase supervisor (again, very professional and courteous) gave me a ring the next day. After doing a little research on Flyertalk and from the great advice put forward by CaliC, wannaflyforless, and others, I expected the supervisor to merely repeat what the original rep had explained earlier...and I would just have to forfeit the additional credit. But...

Without any further interest on my part, the supervisor told me quite nicely that based on my Chase history and credit report, that she would allow simply merging the two cards and combining the credit limits (minus $400 that had to remain on the card to allow it to close. Interestingly, the original rep stated it had to be $500...)! Go figure!

Side note: the supervisor also happened to mention a third card on the account with a $1K limit (I had recently applied for the BA Chase to snag the 100K mile deal. I didn't know I was approved until she mentioned it). She offered to merge this card as well, but knowing I needed to use it first for the miles, I politely declined. She had no problem with it!

So, despite losing $400 on my credit limit with the merger, the addition of the BA card INCREASED my overall available credit with Chase by $600! Again, go figure...