An infamous reader of mine, who has been shut down before from another bank, told me his wife’s Chase account was shut down recently. It was pretty easy to see why he was shut down. In his defense, he had paid off the $160K spend before the statement closed, but the train already left the station for this Chase shutdown story.
AMEX Charge cards
He also thinks another factor is the AMEX personal charge cards. I remember when I was refinancing my mortgage , my broker asked me why my minimum amount due on my AMEX charge card was the balance amount. At the time, I didn’t think anything of it and told her that’s how AMEX charge cards work. Now I wonder if AMEX charge card balances = CL on his CR. So if your AMEX charge card closes at $5K, if your reported CL is also $5K. Or maybe they don’t report a CL; let’s say you have 2 credit cards on your CL – one has a $1K balance out of $10K CL and your AMEX charge card has a $9K balance, I wonder if the sum would equal $10K balance on a $10K CL. Worst case, you have a 100% utilization; best case, you have a 53% utilization. Either way, these AMEX charge cards are bad for your utilization.
A ramp up in spend, in this day and age with Chase or any other bank, seems to be a huge red flag. Also try to pay off your AMEX charge cards before the statement closes.