Introduction
Continuing on with this week’s series of Chase shutdowns, another reader got the axe in the past week. This was on his wife’s account. He wasn’t sure what it was since he didn’t have a ramp up in spend or high utilization. The letter they sent him was the usual, “Too many new accounts” blah blah. At first he didn’t think it was due to too many new accounts, but I asked him to check his wife’s CR. This is in his own words:
ok.. so here is summary..dang i didn’t realise she apply for 5 chase card over last 12 month all are chase cobranded card . now that make sense . that what got her account
no high utilization reported in last 6 month
following bank card she got chase 5,amex 3,citi 2,disc 1,boa 1 and barclay 1
so they saw total 13 card apply and approx 50% from chase and they didn’t like that
Lessons Learned
It’s time to really slow it down in the churning game, especially with Chase. If I wasn’t banned from Chase, I’d maybe only apply for 1-2 cards with them a year and make sure I didn’t apply for any new cards from any other bank within the past 6 months or so.
The key piece of info missing here was when those cards were applied for. Did she apply for 5 chase cards that didn’t fall under 5/24 the last two months? Were they spread out through the year (5/24 or not) and on the fifth one Chase looked at 13 cards in 12 months and then dropped the hammer? It would be interesting to see the timeline on this one.
Good question. I’m not sure, but from what I’ve read, you should think twice before applying for a card under 5/24 and making sure you don’t have that many new accounts within the LAST 12 MONTHS (and not just 6)
Was this for all Chase cards or less?
This is stupid on Chase’s part. Just stop approving people for numerous cards if you’re uncomfortable with giving them credit. Seems to work for every other lending instituition. Seems the amount of bad publicity could be adverted with a clear, simple rule…. 5/24 perhaps. Makes me think all these arbitrary rules are because management is trying to make changes but not everyone is fully on board with a clear policy.
I don’t think Chase cares about churners seeing the bad press, because I’ve never seen it elsewhere outside the miles and points game. We only make up a small percentage of their total cardmembers, but we cost the most to them.