I was one of the early publicly detailed out case of Chase shutdown due to number of inquires and accounts. In order to spread awareness, I have extensively written about it over and over again. But now it looks like I’m pioneering this type of shutdown as my player #2 has also been shut.
First things first, you may want to read posts I wrote about my own shutdown. I have listed them in chronological order-
- Chase Credit Cards Closed Due to Too Many Accounts and Inquires
- Called Chase Executive Office to Reinstate Accounts Chase had Closed
- CFPB Against Chase for Shutdown Due to too Many Inquires and Accounts
Second, when I got shutdown, I did not transfer points to player 2, or any individual for that matter. I do not believe that this “shutdown due to number of inquires and accounts” is contiguous in a household but I will not completely rule this out…yet.
Third, player #2 banks primary with Chase and has had checking and saving accounts with them for over a decade. The bank account related to player #2 is just fine and so is mine. At this point, it is more or less confirmed that this type of shutdown does not lead to closure of checking/saving account.
Last but not least, player #2 is more or less managed by me and shares the same address as I. Sometimes you may catch me referring to player #2 (P2) as “I”.
Now that I got those out of the way, let’s get to the details…
What Triggered the Shutdown?
I had applied for IHG card because I wanted player #2 to get grandfathered into the old card. I suppose that gives you a time frame of the application but I’m not going to state the exact date.
I applied for IHG card in behalf of player #2 and #3 (okay this is gonna get confusing in future post but whatever let’s wing it) and to my surprise rookie player #3 who has been in States for less than 6 months got IHG card….and that very moment I feared for Chase account of player #2….because for all intent and purpose player #2 should have been approved wayyyy sooner.
A few days later, I logged into P2’s Chase account and my fear became reality. Fast forward a few days later and a letter stating reasons for shutdown came through the mail.
Here are the reasons we closed your account:
- Number of credit cards accounts
- Too many requests for credit or/reviews of credit
How is this Different Than Player 1 Shutdown?
Well, this one doesn’t say “too many accounts opened recently” 😉
What Happened to IHG?
Similar to my Marriott Business application, Chase declined IHG application due to “previous unsatisfactory relationship with this bank”.
Player 2 Details – x/6, x/12, x/24, etc
As I mentioned before P2 has been a Chase customer for over a decade but he has also been with BoA and Amex just as long.
Credit Score: high 700 – low 800
Average age of account: a little over 4 years
Open credit card: 14 of which 4 were Chase cards – Freedom, Hyatt, Ritz, and CIP.
Experian inquires (Chase pulls): 2/6, 9/12 10/24. Last inquiry was with Chase and it was roughly 3 months ago.
TU inquires (Chase Pulls this also!) – 3/6, 8/12, 11/24. Last app was roughly 20 days ago. Second last app, above mentioned Chase inquiry from roughly 3 months ago.
How does Player #2 Feel?
This more or less summaries it…
Me: Chase closed your account
P2: My bank account too?
P2: All my Chase credit cards?
[pause few seconds]
Me: Will you call?
Me: I will cash out your points then?
P2: Is Player 4 safe? How about others?
P2: good, let them close mine hahaha
P2: Oh btw, don’t apply anymore…without asking me first
Me: <insert smiley face here>
I have read vast majority of Chase shutdown DP relating to high # of inquires and accounts. You could even say that I have been shutdown twice and the logical conclusion I can draw from all of it that there is no definite pattern to it. Some shutdown cases of those under 5/24 have not been reversed, same thing has happened to someone with 20+ Chase history, but someone with 40+/24 has been reversed. At the end of the day all that seems to matter is your individual profile and the profile of whoever profiles you.
Yes, you can do certain things to avoid it and some approach seem to yield better result at reinstatement than others, but ultimately there is no definite number like x/6, x/12, x/24 governing these shutdown or (perhaps) even trigger that leads to these shutdown.
What can you do to avoid these shutdowns? Maybe space out your apps better. One Chase app every 6 month sounds safer but that does not guarantee safety either.
What can you do to get better result with reinstatement of your account? I strongly believe in not calling the executive office right away. This also means you should not file a CFPB complain right away…well because EO office handles that. The reason for this is because
- you want to save EO as your last option because if they say no, nobody will help you
- I believe you will have better luck calling the number on the back of your card, preferably Ritz, CSR, or CSP, and asking to be transferred to a department that deals with these shutdown and reviews of accounts closed by Chase.