should I be cautious using my CC

Discussion in 'Newbies' started by lucky1, Feb 14, 2012.  |  Print Topic

  1. lucky1

    lucky1 Silver Member

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    hi, my wife has had 2 [Chase fd] cards since 2005/2006 but didn't use them even once!!
    now recently getting to know this and other sites about cc benefits etc, she applied for Chase SP/CO OPP and is planing to use it regularly although responsibly,

    should I be afraid that alofasudden using my cc will raise Chase suspicions, when they see a person starting to use credit suddenly ?
    what is the best way to use her cc's so we shouldn't risk the dreaded Chase AA ?
    will paying off each months balances even before the statement closing date [not due date] help ?
    please advice us we are totally confused, thanks
     
  2. MSPeconomist
    Original Member

    MSPeconomist Gold Member

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    Are her old accounts still considered by Chase to be active and open? You should check.
     
  3. lucky1

    lucky1 Silver Member

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    yes, they are, in fact they even approved her for 2 more SP/CO OPP
     
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  4. Wandering Aramean
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    Wandering Aramean Gold Member

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    I had a Chase card (UA MP) that I hadn't used in about 9 months. My first transaction on it was denied and I got a call from them. I told them I knew I hadn't used it in a while but I decided to start again so they unlocked the account. I had no further issues with it after that.

    No need to worry about paying early versus on time or other bits, IMO. If you are regularly maxing out the credit line that might raise flags, but otherwise I doubt you have anything to be worried about.
     
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  5. deant
    Original Member

    deant Milepoint Guide

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    As MSPeconomist said, make sure Chase considers the accounts still open.

    As for using the credit cards, I would not start charging thousands of dollars in a month immediately. Start with a few hundred in a month per card. Since you don't have a track record, would not pay before the statement date. You want to show a balance so they know you are responsible and can make payments on time.
     
  6. BWIflyer
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    BWIflyer Silver Member

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    "will paying off each months balances even before the statement closing date [not due date]"
    Usually the due date comes before the statement closing date.
    sign up for Autopay and you don't have to worry about missing a payment.
     
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  7. deant
    Original Member

    deant Milepoint Guide

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    I think the OP means that he would pay the outstanding amount BEFORE the bill is generated (statement closing date). Therefore the bill would show a zero balance due.
     
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  8. tondoleo
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    tondoleo Gold Member

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    Chase wants you to use their card. They earn money that way. Nothing would make them happier than you make a late payment or keep a balance on the card. They earn money that way too.

    They will not hassle you unless you run up a balance and don't pay it down at all for a long time.

    It does not sound like you are going to do any of this. Enjoy the benefits of the card and whatever bonus miles come your way.
     
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  9. lucky1

    lucky1 Silver Member

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    +1
     
  10. lucky1

    lucky1 Silver Member

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    thank you all, your answers make sense, however sometimes Chase doesn't, you see people out there being AA'D by Chase all the time literally for no obvious reason,
    while regular charging on the card might make them happy, still this is only from the regular Chase cc perspective, but the Dep in Chase closing down accounts, are determining different strategies,
    thats why I thought, sudden using of a card not being used for years might flag me down
     
  11. lucky1

    lucky1 Silver Member

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    dont they see your balance regardless of the closed statement?
     
  12. FlyingBear
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    FlyingBear Silver Member

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    That accomplishes very little as far as credit reporting goes.

    I am not sure what stories you are referring to, but most of the time there are obvious reasons for Chase/Amex/Citi/etc to go after the user. The user just doesn't always admit to it.
     
  13. lucky1

    lucky1 Silver Member

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    dont they see your balance regardless of the closed statement?
     
  14. lucky1

    lucky1 Silver Member

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    why would you say so? if my statement closes at 00 balance that means my ratio is on the lowest end,
    but in any case, my point wasn't regarding credit report, it was about the best way to use my cc so CHASE shouldnt suspect something,

    [/QUOTE]I am not sure what stories you are referring to, but most of the time there are obvious reasons for Chase/Amex/Citi/etc to go after the user. The user just doesn't always admit to it.[/QUOTE]
    I'm referring to peoples accounts/cc being shut down for no reason,on one of the blogs there is actually a thread dedicated only for that and guides/moderators climb the wall trying to figure out the reason
     
  15. FlyingBear
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    FlyingBear Silver Member

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    No, the only thing that means is that your utilization at the moment of statement closing is 0%. Utilization will still be higher than 0% based on the largest balance you have on the credit card. Chase does not look at JUST the balance at statement closing, so if you are worried about high utilization, simply choose an arbitrary threshold you are comfortable with and do not go over it.

    You are worrying too much here. See my point above.

    Which blog? I am sure that for every "innocent" user there are dozens that got themselves into trouble for a reason.
     
  16. miles and smiles
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    miles and smiles Gold Member

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    I would just give Chase a call, and tell them you plan to start using your inactive card again. Unless they tell you something else you need to do, then just use the card the way you would use any card.
     
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  17. lucky1

    lucky1 Silver Member

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    I'm sorry but I think your wrong, it makes no sense for banks to look at 'high balance' on CR, because lets say I have a cc with a CL of 50k and my high balance is say 30k, now I move half of the CL to open another card,which will leave the CL at 25k so my CR shows a CL of 25k with a high balance of 30k!!! thats impossible it ago should affect my CR people do that all the time and still get approved for cc's with no problem,
    IMHO the lender looks only at the CL + current balance
     
  18. lucky1

    lucky1 Silver Member

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    makes sense,
    however the regular cc cs Dep is not the one that looks over accounts for irregular activities
     
  19. miles and smiles
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    miles and smiles Gold Member

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    if so, they would forward your call to the appropriate dept or give you the correct # to call (assuming, of course, you reach a competent csr)
     
  20. lucky1

    lucky1 Silver Member

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    that Dep is unreachable, [sort of like the marketing Dep which is unreachable]
    people dealing with Chase AA [adverse action] have to call up Chase executives office to work it out, and a regular cs will never transfer me over there, besides the point they can't even do anything in sucha situation, only when your in the problem already
    p.s. my concern expressed herein is not as far as fraud etc. just being afraid of being AA'd
     
  21. FlyingBear
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    FlyingBear Silver Member

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    If I am reading you correctly, you are severely misunderstanding my example. I am not talking about historic high balance, I am talking about the balance at the moment credit card is being reviewed. Your utilization rate is calculated at the moment that you have a balance, not just at statement closing. Paying off your balance before statement closing decreases the amount of time you have high utilization, but not the utilization itself. If you hit 100% utilization for just a day and then paid it off, you STILL had 100% utilization, that fact does not go away just because it is paid off.

    So like I said, if you are worried about that, simply do not go any higher than a utilization percentage that you can tolerate and there is no issue.

    P.S. Can you provide the source for your fear of AA by Chase?
     
  22. lucky1

    lucky1 Silver Member

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    your point might be right , but as far ad reporting to the CB's, its only reported a day or 2 after statement closure, so if my statement closes 0 balance then my ratio appearing on the CR is 000 utilization,CMIIW
     

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