Err on the side of caution. Consider one less application instead of one extra. Be aware of the Amex Financial Review, and all the card issuer’s right to say no. When you ask for a card you are asking for a loan. It is the lender, not the borrower that sets the rules.
Now, I’m sure our reader will get his Chase accounts opened again. And I owe it to our readers to remind you when the opportunities arise, (as this case does), that your credit is one of your most important assets.
The message I received …
I hope this email finds you well. I just wanted to share a quick story that just happened to me and you may warn some of your readers. Until last Friday, I owned 3 Chase credit cards including Freedom, Sapphire Preferred, and OnePass. I have respectively owned these cards for 2 years, 1.5 year, and 0.5 year.
I checked my credit last week (it was good, 750-ish) and decided it was time for a new application round. I applied for four cards, from four different banks (CITI, AMEX, BoA, and Chase). All were approved, but the Chase Southwest personal card. I called them and they told me they had to review it first and could not make a decision right away. When I checked my Chase accounts this morning, they were all closed. I called and was transferred all the way to Chase’s “credit gurus” (or so they think… that woman was way too condescending). She kindly but firmly explained that I had become a credit risk as I had too many cards (15) and a too high credit limit compared to my household income ($50,000 CL for $70k+ in household income). I tried to negotiate asking to maybe close a couple accounts or reducing CL on other cards. Nothing to do. All the accounts were closed and will remain this way until I called them back and have them check if they can re-open them based on my credit report changes. It seems that they may be placed on some type hold as she said I could re-open them without re-applying once I’ve addressed the aforementioned issues.
I have never had a single late payment on any of my cards, my utilization ratio is 5% or less on each card, and I apply for cards usually twice a year. Needless to say that I was extremely disappointed for not being contacted by Chase before they closed all my accounts. It felt really wrong. I’m honestly not a big fan of Chase but they have considerable upped their game and have can’t pass credit card offers. I will do with my other cards for the time being and may close some of my unused accounts that aren’t too much of a factor in my credit history.
Chase has had excellent offers but they might be on the lookout for suspicious activity.
A Loyal FTG Reader
Chase Sapphire Preferred® Card
- Annual Fee: $95 fee waived for the first year
- Foreign Fees: No
- Card Type: Bank
The Sapphire Preferred offers 2x points on dining and travel, and no foreign transaction fees, making this the go-to card for travelers.
This card accumulates Ultimate Rewards points, which are very valuable for transfer to United and Hyatt. Overall, this card is a great choice for maximizing earnings on dining, travel, and every day spend.
- Earn 40,000 bonus points when you spend $4,000 on purchases in the first 3 months from account opening. That's $500 in travel when you redeem through Chase Ultimate RewardsSM
- Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening.
- 2X points on travel and dining at restaurants & 1 point per dollar spent on all other purchases
- No foreign transaction fees, plus Chip and Signature enabled for international travel.
- 1:1 point transfer to leading frequent travel programs at full value — that means 1,000 Ultimate Rewards points equal 1,000 partner miles/points.
- 24/7 direct access to dedicated customer service specialists
- Introductory Annual Fee of $0 the first year, then $95