I got declined by State Farm and the reasons sounded fishy so I called up and got connected to a really nice, knowledgeable guy. He said basically that at some point, no matter how good your credit score is, the computer gets nervous when it sees that you could, theoretically go and take on 200k of credit card debt tomorrow. (OR x ratio to your income.) And then they deny people. I would suspect its the same deal with closing accounts. Banks are skittish.

edit: moved to the other thread

goku2 said:whywhq said:all my Citi Cards were closed last week without any notifications. Called and they said I have too many credit cards! (2citis, 4 chases, 3 AMEX, 3 boa).

However, I did not apply any cards after I got the citi cashreturn card. Their excuse seems ridiculous. If I have too many cards, why you still approve my application?

I have more than $1000 cashreturn bonus and $80 dividend bonus in the two cards. they said the bonus programs have been closed for my accounts too and I will not get the bonus back.

I am thinking to take legal action if they refused to give the bonus money back to me. how much chance I can win?This is my situation, however they did not say to me that I had "too many credit cards". When I spoke to a citicards executive at the corporate office, they said that I had been using the card to buy giftcards and use paypal and that I was abusing the card and since it wasn't in the best interest of the company, they decided to close the cards. Personally I think it's bullshit that they can close a card because it's not in the best interest of the company, yeah well maybe you shouldn't have had a 3 month unlimited spending promotion then now should you? Why can't these companies be accountable for breaking a contract?

I don't think they broke any contract. You should read their T&C to get a better understanding. They are the one giving you the credit and it's entirely up to them if and when they decide not to extend any more credit to you. Getting a line of credit is NOT a right but a privilege!
Believe me, I am speaking from my personal experience.

And to whywhq
I am thinking to take legal action if they refused to give the bonus money back to me. how much chance I can win?
You have virtually no chance to win this as you will find those terms in your T7C of the card.

C(r)ap One dopped my CL on an old card I once used for purchases on vacation in europe.
must be 4-5 years old, got it for some bonus, used once as above. CL was $8500, busted down to $500. I know I'm quoting someone here when I say I have had dinners that cost more than that.

reasons:
Date since last activity (9 months)
Cap One CLs are too high (The average of my CLs with other lenders is just under $100K)
Revolving balances have increased too rapidly. (No activity on personal cards since AOR in October.)
Revolving balances are too high (C'mon, I've only got about $300K out at 0% as of last week)

I had recently used some of my HELOC, and not paid it down to 0 until this week. Maybe that was it.

No use closing it, or even calling them for reinstatement. My total CL is over $1MM so $8500 means nothing and their rewards programs stink.

Any other 0% forex purchase cards out there?

BofA closed all but one of my cards (around 5 or 6) a couple of months ago.

Chase just closed all my and wife's cards including business card. Reason? I applied for more credit in 2008. WTF? Those were the Cashreturns cards I opened every 3 months. What's the big deal? They just wanted an excuse.

2 Chase (formerly WAMU) were just closed...said balances too high on other accts. That's because limits have been lowered on the other ones - AMEX, CITI, BOA.

Ya' can't win for losing these days.

Husband's Chase Sony card - limit reduced from 3K to $800.

duna said:One of the nasty results of these credit line reductions is a reduction of your credit score.

Yes.....mainly because your utilization ratio is increased due to decrease in available credit even if you are spending the same amount. I had to open few more credit cards just to counter the effect of Chase closing all my credit cards.

frank10b said:I did a charge recently that was near the CL on a USBank cc. It was 10K of 12K CL to get flexperks rewards. I paid it off right after it posted, however will this show up on CR and lead to adverse actions? thanks!

As long as you paid it off before the billing date it should not show up on your credit report.

ShakuniMama said:frank10b said:I did a charge recently that was near the CL on a USBank cc. It was 10K of 12K CL to get flexperks rewards. I paid it off right after it posted, however will this show up on CR and lead to adverse actions? thanks!

As long as you paid it off before the billing date it should not show up on your credit report.Typically yes. But US Bank is one of the few that updates credit files on the first of every month regardless of the statement date, using the current balance at that time rather then the statement balance. So it will depend on if the balance was outstanding on the 31st.

susieling said:To whoever has been affected by Chase AA -- are you able to apply for new Chase CC at all? All my 4 accounts have been closed (quoted me "too many inquiries" and "too short credit history ( 8-years is still too short?)" while I believe the real hidden reason is my usage pattern) about "one year" back, and I have not applied for any chase card ever since then. Also, the total of inquiries on my credit profile for the entire past year is only 2-3. However, when I tried to apply another cc with chase a couple of days back, I got denied with the reason of "bad bank relationship since customer' accounts have been closed by the bank before". I tried to explain to them even the past "force closing" is kind of unfair to me, but I am told this is the policy and can't be changed. When I ask "does that mean I can't apply for any chase cc at all in the future", the representative simply replied with "I don't know when the policy could change".. Wondering anybody has the same experience? Am I basically excluded for the approval of any chase cc due to a past "fact"(since a fact can't be changed)? OR do I need to wait for more than one year, then normally how long? 2 or 5 years? Never thought this AA is going to affect my future application that hard... BTW, I have very high FICO (800+), and got approved for other loan/cc very easily (instant).

Thanks

Yes, they did that with me also. I don't care as I have tons of CC from other banks.
Screw Chase..........