With the many Chase shutdowns going on recently, it’s time to remind people of an old message that I already posted about many times.
Don’t have your credit cards and bank accounts with the same bank.
It may be convenient to bank and have your cards in one place. But the problem is that often, people get their credit cards shutdown due to issues with their banking activity.
Even if you’ve never missed a payment on your credit cards, but on your bank account you have had multiple overdrafts within the last few months then Chase may choose to end their relationship with you. And when they decide to do that, not only will your bank accounts go flying, but so will your credit cards (not in all cases, but in many).
What factors can trigger your Chase bank accounts to be shut down?
Chase has many factors that can trigger bank account shutdowns (the triggers for credit card shutdowns we discussed last week). These triggers can include:
- Many foreign wires
- Suspicious deposits
- Big cash deposits or withdrawals
- Many third party checks
- Many bounced checks
- Many overdrafts
- And more
If Chase finds you to be a customer that they prefer not doing business with, they have no problem kicking you, and kicking you strongly (I was personally involved in a shutdown a few years ago on an account that had several million in it. The consumer was not able to get his accounts reinstated).
If your bank accounts goes so do your credit cards
As stated above, in most cases, if your bank account is shut down then your credit cards will be shut down as well.
Therefore, if you value your Chase credit cards then it’s way better for you not to bank with Chase as you’re risking your credit cards to be shut down. This is especially true if you know better than I do that your bank accounts are far from perfect.
There is no reason to expose your credit cards to this extra risk. When your credit card gets shut down your credit score can be affected, your business may lose buying power and so on. And you may end up needing to liquidate all your Chase points.
Do you know of good bank accounts outside of Chase? Enter them in the comments so other readers can check them out.
Wells Fargo is pretty easy to bank with.