Save Credit Cards From Being Shut Down

Seems like banks are getting more and more strict expanding their terminology of “abuses” this day and age. Credit Card Shutdown is just the latter, especially for those gaming or manufactured spending the system. Below, we will evaluate American Express, Bank of America, BarclayCard, Capital One, Chase, Citi, and U.S. Bank in regards to this topic. Hopefully, our list could help you retain your credit cards better.

AMEX:

Amex Financial Review:

American Express conducts what they call “Financial Review,” in which case, if they see anything that is suspicious activity, usually triggered through heavy spending; ordinary and manufactured (emphasis on heavy MS usage), they will proceed to reviewing the actions on your credit card: activities and income. When you’re under this “review,” ALL of your cards will be frozen and unable to be used to make any purchases throughout the process. Furthermore, you should expect Amex to request documents to verify income and finances.

Why Your Account is Closed:

A sum of Financial Reviews do not result in account closure. With a majority of the cases, you’d either need to unfreeze the cards without change or lower the credit limit to a secure amount. Account closure usually just coincides with individuals with zero documented income or those who have signed up for a business credit card that do not have a business. There has been shutdowns for delinquent debt to Amex.

If your account got closed, you may have success getting the cash rewards you earned, paid upon request. You have better changes of such when your balances have been paid down.You can also redeem your points 90 days after your account is shut down. Pending points included. Note that if you feel that your account is closed unjustifiably, then you can try filing a CFPB claim.

Bounce Back:

It could take you upwards of 10+ years before you’ll be able to get off Amex’s blacklist. You can shorten the length of this term possibly through having yourself added as an authorized user under someone else’s Amex card WITH your SSN in the system.

Bank of America

Why Your Account Is Closed:

Bank of America doesn’t really appreciate heavy manufactured spending, with various cardholders closing all BoA cards (even third-party cards ran by FIA) for such practices. They even have the power to close your IRA. I mentioned in the past that Bank of America was easy with their inquiries and you’d be able to combine multiple inquiries into one which allowed easy access to multiple Alaska Airlines credit cards, however, with regards to that event, Bank of America has become more strict on churners/gamers.

Bounce Back:

All I can really suggest is to try to file a claim if you feel your account was closed unjustifiably, however, there doesn’t seem to be any easy way to get your points after you’ve been shutdown.

Barclay’s

Why Your Account Is Closed:

Barclay’s been up on the shutdowns recently. Here’s where the ‘abusive’ cardholder language comes into play, so you should already expect churners or those reaping heavy usage manufactured spending to be impacted. They went as far as shutting down all accounts of even relatives that have the same address, which doesn’t make any sense, I guess they assume that if a set person is in on those practices that all of their relatives is in on the scheme as well.

Note that if you weren’t churning or MSing, you may have had your account closed due to too many tied payments from different bill pay sources. Also, if you have disputed a charge, banks detect it at certain level, enough to indicate whether you’re account is deserving or not.

Bounce Back:

Try filing a CFPB claim if you feel your account was closed unjustifiably. You could possibly even get the annual fee back by calling. Also, it’s definitely going to take some time to get on Barclay’s good side, especially longer than Chase.

Capital One

Why Your Account Is Closed:

Particularly heavy manufactured spenders or those who took legal action against Capital One found their accounts shut down. If you are deemed an abuser, all your cards will get the shutdown.

Bounce Back:

Capital One lets you use your point balance as payment towards any outstanding balance. Capital One may take you back after waiting 180-days or so.

Chase:

Why Your Account Is Closed:

Chase is Chase and there’s been mentions on the net regarding Chase’s sensitivity to suspicious payment activities. Here’s how you can get on Chase’s suspicious list: Paying Chase with excessive money orders or in-branch cash payments. Making payments with alternative electronic payments (Bluebird or Walmart Billpay) or using too much unidentifiable payment sources also strike suspicion in Chases’ eyes.

On top of that, you should already expect heavy manufactured spending, and heavy card usage to be a reason as well. Overspending in a short amount of time and cycling out your credit line definite makes Chase cringe. As of May 2017, you should also expect Chase to audit accounts from new card applicants checking inquiries and how many new cards opened in a time interval.

Bounce Back:

You can redeem your Ultimate Rewards Points after if you’ve been shutdown. You will have an interval of 30-days span after account closing to do so. It’s to my understanding that if you’ve been on Chase’s bad side, waiting a year+ may be necessary to get on Chase’s good side. YMMV. It could be an option to convince Chase to let them get your old cards back after a year’s wait.

U.S. Bank

Why Your Account Is Closed:

Shutdowns are usually related to Manufactured Spending. Shutdowns can also be possible if U.S. Bank deems any suspicious deposit activity on a US Bank checking account. Reiterating “Heavy” Manufactured Spending with U.S. Bank on their Altitude and Flexperks cards will result in shutdown without warning.

Bounce Back:

You will be able to redeem your points after shutdown.

Final Analysis:

Big Banks are getting more strict on what is deemed as good practice from our end. Most of the time, if your account had been closed, it’s due to the fact of heavy card usage, heavy manufactured spending, or churning. Most banking establishments have a new applicant audit time-frame in which they will deem whether you’re a gamer or not through your past and present inquiries and new credit cards. It’s necessary that there are ways to get back on these bank’s good side, so it’s not the beginning of the end for you just yet. Don’t forget to also check out our full list of Credit Card Bonuses for all of your credit card needs.