Chasing a CHASE CARD!

[victoriouswarrior]

Hello,

I recently saw a application recieved by a friend from Chase Bank...

It was an application for a $ 100,000.00 Credit Limit business card !!!

Is this for real ??

What would make some one be approved for a credit line like this?? (excellent score 900???? excellent income ??????

Has anyone , who know anyone really been approved something near this type of limit ?

JUST CURIOUS

[Guest jeeptravel]

Credit cards should be paid off quickly. Temptation with a CL like that is just totally dangerous, unless you are a millionaire. In that case even, why would you need to charge a credit card and pay interest when you could just use a debit card.

I think it was probably a bait-and-switch (ie; "Up to 100,000* OAC")

My limits are low because I am starting again with credit. I hope to never carry too much of a balance, that's when they HAVE YOU.

Just my 2 cents

JT

[ananias]

I recently saw a application recieved by a friend from Chase Bank... It was an application for a $ 100,000.00 Credit Limit business card !!!

Is this for real ??

What would make some one be approved for a credit line like this?? (excellent score 900???? excellent income ??????

I don't know about Chase, but I have a Discover card with a six figure limit and I haven't even been able to use it in nearly two years because they keep reoffering me the entire credit line at 0% and of course I take them up on it and invest the money. The net result is that I earn about $600/month for not using my Discover card at all. Despite asking them nicely many times, they've never been honest about why they do it. They say its because I've been a good customer. Now how can that be when I haven't even used the card in nearly two years?

So I spent a lot of time researching the industry and now understand exactly why it is to their advantage to do this. If you're interested, start with Collateralized Debt Obligations and prepare for a trip through the financial version of Alice in Wonderland. Basically, since most of the people who don't pay their credit card bill on time or in full are poor credit risks, the banks can lower the cost of borrowing money to loan to those folks by averaging up the quality of their overall debt. To do that they need to loan a lot of money to customers with excellent credit. Even if it costs them a considerable amount to do that, it still saves them overall.

By the way, the last time I saw my credit score, about two years ago when I renogtiated a HELOC, it was slighly below 700 with no negatives of any kind. However, I do remember that about 4 years ago, when I asked to have my limit raised to 100K, they asked to see my tax returns for the last few years. Which I sent them. And that's why I tell people the best way to get approved is to either prove, or make the issuer believe, that you have a high income. If you don't have a high income you can still fool them by arranging for a lot more money to pass through you checking account every month. How you do that depends mostly on how clever you are. In spirit this strategy is most certainly fraud. But I don't believe it is illegal.

In my case it was accidental. I was simply trying to help out all of my old relatives by paying all their bills (and getting reimbursed.) I make nothing for this, (it's very little work with quicken/online banking etc) but the bank sees tens of thousands go through my checking account each month. Hence they think I'm earning and spending all that money I suppose. I've never lied on any application either.

[willingtocope]

victoriouswarrior: You do realize that in almost all cases, a "business line of credit" requires a personal guarantee. Even if the business is incorporated, if it goes belly up or defaults on the card, the gurantor is responsible for the debt. Not a good idea...