A reader had all his Chase accounts shut down on Friday. He wasn’t sure what happened so I asked him questions to figure out what happened:
- Ink abuse? NO
- Bill pays or any other anonymous payments? NO
- What were your total balances closed on latest CR? ~$20K (this is really minor; if he had said $120K, that could have been the reason.
- Did you cycle? NO, but I charged $60K CL on FU but paid off before close. BINGO!
I think the rampup in spend on the FU was what got him. Reminds me of when I ramped up on my Chase cards. Odd that they still got him even though he paid if off. Usually, we assume paying off gets us off the radar since we’ve shown the bank that we can pay off the spend. The counterpoint to this is that he was able to ramp up similarly on his Amazon card and had no adverse action. So it seems Chase didn’t like the rampup in spend on their UR cards.
The reader did call Chase this week and asked what happened. They told him they didn’t like “all the credit I had available on my credit report.” This is a bit mind-blogging because high amount of unused credit = low credit utilization = a good thing. I think what happened was the rampup in spend on the UR card put eyes on his account. They then looked at his CR and saw all of his available credit and deemed him a possible flight risk and decided to shut him down.
Don’t ramp up that high on any credit card, particularly a Chase card. The FU card wasn’t even a new card; it was a sock-drawer card that ramped up too quickly. Looking back, he should have spread out that $60K spend over 3-6 cards (include other banks too.) I know some of you will say, “I could have told you that,” but even a shutdowns expert like myself would have thought spending up to the CL and paying it off would have been fine. Maybe we all should consider lowering our overall credit lines too?!?