Yeah, you know that this should never be an issue, since YOU, the perfect user of your Chase credit card would never go over your credit card limit or even go near it. (Right?) As a matter of fact, if you’ve been reading this website for any period of time, you know that you should be keeping your credit usage below 25% of your limit for optimum credit scores.
But what if you’re not-so-perfect or you’ve been one of those lucky consumers whose credit limit has been cut in half or more by the credit card companies and now you’re maxed out on your card? Well, if you carry a Chase Credit card, there is a secret (meaning they don’t advertise it) feature in your account that you can turn on by calling Chase customer service. I learned about this service from the CreditMattersBlog.com. Read more here.
Why doesn’t Chase tell its customers about this block feature? The short answer is that Chase allows purchases to go through, even if these purchases would take the customer over the limit, as a “courtesy” to its customers. That’s the company line. It’s a courtesy, I am told, because it allows the customer to make a purchase that he or she would not otherwise be able to make. Therefore, the customer in my hypothetical walks away with the shorts — but also pays $39 for the privilege. Of course, in some cases — with large, expensive purchases, for example — an over-the-limit fee may be worth accruing (think of an important purchase that takes you over the limit by $3). That’s the courtesy that Chase is touting.
The reality, of course, is that Chase doesn’t advertise its over-the-limit block because it doesn’t make good business sense — for Chase. While it would be great for the customer, it would be terrible for Chase. Chase, like every other card issuer in this country, makes a boatload of money each year from the penalty fees that is collects from customers who exceed their credit limits and make late payments. Chase, in other words, has no financial incentive to promote this block.
Anyone here ever use this block? Tell us about it!
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I have not used this block, nor was I even aware of it so thanks for the information! In helping people to get control of their credit lives, it’s important to know just how many ways banks and credit card companies are finding legitimate ways to make money, particularly off the backs of people who need the money more. What’s really disturbing is the lack of morality we’re seeing in our business practices. Along with credit bureaus who don’t want to help people clean up their credit, we have huge institutions who, in their short sighted views of making money fast, continue to add to the hardship of too many people. By not making it a point to inform people of this tool to avoid an additional expense, I consider this lying to the public.
Once again, I appreciate you’re bringing this to light
I agreed to credit limiys with companies a b &c. why am i responsible for them allowing me to exceed my limit that i agreed to. thanks