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Chase canceled my credit card
Old 12-16-2008, 07:45 PM   #1
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Chase canceled my credit card

I got a letter in the mail today saying that I havn't charged anything on my Chase card for two years, so they were cancelling the card. It wasn't that long ago that I had to argue with the card company's to cancel a card.

I also was asked by my bank to cancel a line of credit that I had since 2001 but never used.

A sign of the times, or is it just me?
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Old 12-16-2008, 07:48 PM   #2
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I have a few cards I no longer use. I just use the Penfed card to get the cash back. So far no cancellations. Seems weird to me they would cancel cards like that. Then again I do not have a Chase card.
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Old 12-16-2008, 07:48 PM   #3
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I got a letter in the mail today saying that I havn't charged anything on my Chase card for two years, so they were cancelling the card....

A sign of the times, or is it just me?
It's not just you. I got the same letter from Chase today.
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Old 12-16-2008, 07:51 PM   #4
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None of mine have been canceled, nor have my limits been reduced, but one of my Visa card holders threw some decent deals my way recently to encourage me to use their card more. I do have a line of credit with Chase bank that I use every couple of years or so for cash flow management.
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Old 12-16-2008, 07:52 PM   #5
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Union Bank of California sent me one also, for not using the card for 18 months. They're the ones who gave me an iPod to open a checking acct. Don't remember the ploy with the credit card, had to be something or I wouldn't have opened it.

What's the reason; somehow freeing up available credit on their books?
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Old 12-16-2008, 07:54 PM   #6
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Union Bank of California send me one also, for not using the card for 18 months. They're the ones who gave me an iPod to open a checking acct. Don't remember the ploy with the credit card, had to be something or I wouldn't have opened it.

What's the reason; somehow freeing up available credit on their books?
Good Q. Beats me. The last 5 minutes between sipping wine I been thinking about it. Crap time for me to move onto the next subject.
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Old 12-16-2008, 08:13 PM   #7
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HSBC closed one of my credit cards because of lack of activity on the account.
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Old 12-16-2008, 08:17 PM   #8
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Maybe an accounting issue, to limit unknown future debt that could accumulate if we all charged the max unexpectedly?
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Old 12-16-2008, 08:31 PM   #9
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Maybe an accounting issue, to limit unknown future debt that could accumulate if we all charged the max unexpectedly?
Might be. Somebody must be wondering what all the folks losing their jobs are going to live on.

It also could be that they're desperate to rack up charges and make some money, and they consider those of us who are not holding balances some kind of deadbeats. My credit union has notices everywhere, electronic signs at the drive-in, on their website, across every statement and correspondence: "We have money to lend!"
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Old 12-16-2008, 08:35 PM   #10
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I wonder why the clampdown? Just to get the deadwood off their books, or trying to reduce exposure to borrowers who don't usually need credit but suddenly use it (indicating possibly higher repayment risk).

We've seen that HELOCs are not a reliable source of emergency funds, and this reinforces the fact that CC lines of credit aren't either. Seems like only bank accounts, MM funds and other non-volatile "promises to pay" (rather than "promises to lend") fill the bill.
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Old 12-16-2008, 08:45 PM   #11
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A sign of the times. All those LOCs are potentials losses. If you haven't used it in awhile you probably would not use it unless it was an emergency.

And their business cards are invitation only
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Old 12-16-2008, 09:12 PM   #12
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A sign of the times. All those LOCs are potentials losses. If you haven't used it in awhile you probably would not use it unless it was an emergency.

And their business cards are invitation only
Ohhh good point. So my plan of when things get super bad. I cant just charge up 200k in credit cards then slink away plan might be in jeopardy! Crap rethinking ER right now.
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Old 12-16-2008, 09:45 PM   #13
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i had a CC company, can't remember which one - could have been CHASE - write me about 2 months ago - to use my card or lose it. I didn't use it, so I am guessing I will lose it. I am thinking that like banks have to keep a certain reserve on the amount of deposits, CC companies might have to do something similar for potential liabilities they will have to pay?
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Old 12-16-2008, 10:01 PM   #14
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I've got three major company credit cards. I use one, DH uses the other and I have a monthly bill automatically paid by the third card. If any of these companies cancel, it won't be because of lack of activity.
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Old 12-16-2008, 10:19 PM   #15
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Is that going to affect you guys' FICO scores (because you have less available credit)? Just curious...

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Old 12-16-2008, 10:48 PM   #16
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The FICO score was why I hadn't closed a lot of those cards I opened for some stupid promotion. I just hope Discover doesn't start doing that. It's my oldest card and I never use it and they traditionally do call me and annoy me every six months or so to use it. Come to think of it, Chase did say I had an open account on my free credit report, maybe it just hasn't been closed officially yet.

When I got a Heloc last year they said my FICO score was 826, so probably a younger CC being closed won't hurt me that bad.
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Old 12-16-2008, 11:02 PM   #17
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Is that going to affect you guys' FICO scores (because you have less available credit)? Just curious...

tmm
Yes, it will to some extent since it will drive up your utilization percentage and decrease your FICO score.

See more here

It has also impacted some people's financial manhood.
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Old 12-16-2008, 11:54 PM   #18
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This is going to affect my credit lines because it is being reduced. One of the reasons to get as many credit cards as possible besides being able to do BT on credit cards is that so I can have a huge credit line on my profile. It is like comparing manhood. When I told people that I have a 40K credit line with Bank of America, they all said WOW and opened their eyes wide. Imagine that I go into bar and walk up to group of hot women and tell them my credit line is HUGE. You bet they would see dollar signs all over me.
LOL!
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Old 12-16-2008, 11:58 PM   #19
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whoa, I ran into maddythebeagle lurking on that thread...
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Old 12-17-2008, 12:05 AM   #20
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Then in three years when they are offering some fantastic premium for "new" customers, you will once again qualify.
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