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Chase closed my Freedom CC for using merchant credits as payments

21 10 June 30, 2018 at 05:20 AM
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I have a lot of returns and the refunds exceeded payments a couple of time in a row. So no payment necessary. I got a letter from Chase saying they will close my account if I do this again. So I made a $1 payment last month just to show I made a payment. Still they pulled the trigger on my account without warning and said it's not irrevocable. Will this affect my credit score as I had this card since 2003. Can I reapply for a new Freedom card and get the promotion? Thanks.

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#2
Quote from bastardcheap
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I have a lot of returns and the refunds exceeded payments a couple of time in a row. So no payment necessary. I got a letter from Chase saying they will close my account if I do this again. So I made a $1 payment last month just to show I made a payment. Still they pulled the trigger on my account without warning and said it's not irrevocable. Will this affect my credit score as I had this card since 2003. Can I reapply for a new Freedom card and get the promotion? Thanks.

Why would they care if you had more returns than purchases in a couple of months? That happens often enough when people return a large purchase. They want to throw away a long term customer that is paying their bills...makes no sense at all. Have you called them and asked what is going on?
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Our community has rated this post as helpful. If you agree, why not rep madcowdisease?
#3
There's more to this story.
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#4
Quote from YanksIn2009
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Why would they care if you had more returns than purchases in a couple of months? That happens often enough when people return a large purchase. They want to throw away a long term customer that is paying their bills...makes no sense at all. Have you called them and asked what is going on?
Maybe I'm not a "profitable" customer for Chase as I always pay on time, in full (when necessary) and never carry a balance. I also have -9k in Rewards due to the returns.

When I called CSR, she immediately asked if I got the letter in the mail. She then said there's nothing they can do and I should reapply if I want the card again. EEK!

My concern is is this involuntary closing of CC by the bank going to affect my credit?

This card is one of my older CCs. Is one card with 15 years worth of credit going to "hurt" my credit in the grand scheme of things as my oldest CC is 20 years old.
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#5
Quote from bastardcheap
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Maybe I'm not a "profitable" customer for Chase as I always pay on time, in full (when necessary) and never carry a balance. I also have -9k in Rewards due to the returns.

When I called CSR, she immediately asked if I got the letter in the mail. She then said there's nothing they can do and I should reapply if I want the card again. EEK!

My concern is is this involuntary closing of CC by the bank going to affect my credit?

This card is one of my older CCs. Is one card with 15 years worth of credit going to "hurt" my credit in the grand scheme of things as my oldest CC is 20 years old.

I have a friend whose wife was a spend-aholic and had to return $1000s in items and they did not have their card cancelled. Lots of people pay their bills in full each month. The CC companies make 2-3+% off every transaction so the last thing they want is for someone to walk away who is not a risk to them. Even if they thought you were trying to game the system with manufactured spending because you have some sort of airline CC or the like and were trying to get a free companion pass or something, they could just issue you a statement credit and not their points\rewards. Just sounds off.

As to affecting your score, it will to some extent. How much is difficult to say.

https://www.myfico.com/credit-edu...dit-score/

"Length of credit history (15%)
In general, a longer credit history will increase your FICO® Scores. However, even people who haven't been using credit long may have high FICO Scores, depending on how the rest of the credit report looks.
Your FICO Scores take into account:
how long your credit accounts have been established, including the age of your oldest account, the age of your newest account and an average age of all your accounts
how long specific credit accounts have been established
how long it has been since you used certain accounts"
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#6
Quote from bastardcheap
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Maybe I'm not a "profitable" customer for Chase as I always pay on time, in full (when necessary) and never carry a balance. I also have -9k in Rewards due to the returns.
So you bought stuff in the 5% reward category, earned the reward, redeemed the reward, and then returned the stuff?
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Quote from Slickdeezee
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So you bought stuff in the 5% reward category, earned the reward, redeemed the reward, and then returned the stuff?
Haha, that's exactly what I thought.
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#8
high return rate probably equates to high risk of fraud. seems more like risk mitigation.
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Quote from madcowdisease
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There's more to this story.
Oh of course... "I also have -9k in Rewards due to the returns."

Chase know's they'll never get that money he cashed out before returning all the merch.
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Quote from iLikeDealstoo
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Oh of course... "I also have -9k in Rewards due to the returns."

Chase know's they'll never get that money he cashed out before returning all the merch.

Something else is not adding up here either. 9K rewards even at a 5% bonus category reward rate would mean 180k in total merchandise returned. No credit card has that type of limit or anything close to it. Numbers just do not add up.
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#11
Quote from YanksIn2009
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Something else is not adding up here either. 9K rewards even at a 5% bonus category reward rate would mean 180k in total merchandise returned. No credit card has that type of limit or anything close to it. Numbers just do not add up.
Uh, your math isn't adding up. 9000 UR in a 5% category is $1800 of spending @ 5 points/dollar.
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Quote from madcowdisease
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Uh, your math isn't adding up. 9000 UR in a 5% category is $1800 of spending @ 5 points/dollar.

You are right as I thought it was one dollar per point not one penny. If that is the case though, then why would Chase get bent out of shape for what amounts to $90?
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#13
Quote from madcowdisease
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There's more to this story.
​I agree
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Since it's Chase that closed your account, it may have a negative effect on your credit report plus your AAoA may go down because of closing an old account.

Since you admitted lots of returns in the past, this may have tripped the alarm that caused eyeballs to your account. From discussions on FT, Chase is one of those that is not very forgiving, they may tell you to apply again later only to deny the application and you're hit with HP. In this case, calling for recon may not give positive results but you can try if you want to.
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#15
Chase has been on a shutdown spree, you can read about it in reddit or other forums
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