Weird experience with Chase

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creditcurious
 
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Weird experience with Chase

Postby creditcurious » Thu Mar 20, 2014 4:12 pm

I went through some rough times during the credit crunch; rate increases, balance chasing etc., snowballed into an ugly situation. (My own fault, I was way overextended).

Anyway, got balance free about 18 months ago and went on a little app spree over the course of a few months. Among the cards I got was a Chase Priority Club (now IHG) with a limit of 14.5K. Due to vacation and having to buy 2(!) new refrigerators in a month, my balances shot up briefly across a few cards, but utilization was still well below 30% on each and maybe 15% total.

Chase came back and dinged me with two CLD's (down to 5.2K on IHG and 6k on Freedom). My balances are now near zero and PIF each month, and I got an offer for 50,000 bonus on SkyMiles card from Chase.

I was hesitant to apply but finally decided the points would be worth it, and even with low limit, the free checked bags would be nice. Got approved instantly with 20K limit! No significant change in credit score or income.

Anybody else have schizo experience like this with Chase? Of course, I will be afraid to use it for anything I can't PIF for fear of balance chasing again...


MemberSince99
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Postby MemberSince99 » Thu Mar 20, 2014 4:42 pm

Nope can't say I have, but then again, I don't carry a balance, beyond a very small amount I choose to allow to hit on one card to boost my score (under 100 dollars, could pay in full but choose not to for scoring). So I never approach even that level of utilization, which to me doesn't seem bad but it obviously spooked them.


Whatever their fears then, your balances are near 0 now which they obviously like. If it happens again I would call them and recon it just explain why you are doing what you are doing.

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djrez4
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Postby djrez4 » Thu Mar 20, 2014 7:31 pm

I'm confused. SkyMiles is the Delta program through Amex.
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creditcurious
 
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Postby creditcurious » Thu Mar 20, 2014 11:34 pm

DJRez: LOL. Yes, you're right. I was getting my ff programs mixed up (just signed up with Delta). It's the United Explorer card.

Member: I don't usually carry a balance either, anymore, but I had 0% interest on a card so I took advantage of it. The other balances were reported balances that were PIF before the next cycle. Just appeared on my credit report for a month. I guess it happened to be when they were reviewing my new account.

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tbka
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Postby tbka » Fri Mar 21, 2014 9:03 am

I did not knows you could get a CLD... OMG! What if the drop your credit limit lower than your current balance? Do they also get to charge you a over limit fee too!?!? Crazy Dog!
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takeshi
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Postby takeshi » Fri Mar 21, 2014 9:18 am

Not sure why you think it's "schizo" when you went on an app spree. Conservative creditors can certainly respond with AA if they think you're accumulating too much too fast.

tbka wrote:I did not knows you could get a CLD...

It's certainly possible if a creditor views one as too risky.

tbka wrote:What if the drop your credit limit lower than your current balance?

They won't. They'll balance chase and/or close accounts. Both are generally very damaging to utilization.

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Postby MemberSince 79 » Fri Mar 21, 2014 10:47 pm

MemberSince99 wrote:Nope can't say I have, but then again, I don't carry a balance, beyond a very small amount I choose to allow to hit on one card to boost my score (under 100 dollars, could pay in full but choose not to for scoring). So I never approach even that level of utilization, which to me doesn't seem bad but it obviously spooked them.


Whatever their fears then, your balances are near 0 now which they obviously like. If it happens again I would call them and recon it just explain why you are doing what you are doing.


I am curious as to how much real benefit that small balance could make.

I have had zero balances for over 25 years with a FICO of 829. I don't see carrying a balance making much improvement.
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Postby MemberSince99 » Sat Mar 22, 2014 7:25 am

I don't normally carry a balance either. But the last few months I've been doing it, to get every point. When an upcoming mortgage is on the line, then I start to care where normally I really don't worry about it much. Right NOW I'm not carrying one because I expected 10 dollars to post on Freedom before statement closing but it didn't happen, and I just haven't bothered with letting a balance report on anything else. I might wait until next month now.


In terms of exact points, I'm not sure, I'd have to buy my scores like now, then right after letting a balance hit. Since a new card is reporting that could skew things too. So I'm not sure, it probably varies by case. But FICO does tell you flat out it DOES matter to your score when you check the verbiage, so I'd say they have no reason to lie about it. Would it bring you to 850? Who in hell knows. One way to find out is if you want to spend the money, and let us know.

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Postby MemberSince99 » Sat Mar 22, 2014 7:32 am

As far as AA after app sprees, I've gotten plenty of new cards and they haven't done any AA on me yet. I mean no one has (knock on wood) at all. I don't get 10 new cards at a time or anything, but Barclays has a reputation for not liking that sort of thing and to some degree so does Amex. My view is, if any of them doesn't like it, hey do what you gotta do, and I will too, but it's a free market and I'm going to utilize that thank you very much, and if you don't care for it, well that's just too bad. We aren't married and this isn't cheating get over yourselves it's business. They are free to drop me at any time and likewise I'm free to do the same with them. That's just how it works and that's why I've diversified, much more so than the different reward offerings.


And yeah to me personally that does seem a bit schizo if you really wanna know my thoughts on it. The utilization in your case is what freaked them out much more than any new accounts. I've gotten plenty since I got CSP and they haven't blinked, but I don't ever go over a very small amount posting either (as in a fraction of a percent which they know by my balance with them I could pay off right now). So I'd guess it's that rather than your spree but that's just my opinion.



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