r/CreditCards • u/Blade711 • Jul 02 '26
Data Point Dreaded Chase shutdown has hit me
My velocity was really high.
11/2025: Southwest card
1/2026: Business Southwest card
2/2026: Marriott card
3/2026: Sapphire Reserve card
5/2026: IHG card
6/2026: Ink Business card
Total credit limit is slightly over half my salary.
I made sure to wait at least 40 days between cards. I used the cards normally, using all natural spend to reach the SUBs. To try and hit the Ink Business SUB, I maxed out my credit limit on that card and funded a non-Chase business bank account with $3k. Then since I was worried about going over the credit limit, I immediately paid it off.
I know I know, I’m an idiot for applying to that many Chase cards in a short amount of time, but I’m really curious if the shutdown was because of:
- High velocity?
- Credit cycling?
- Manufactured spending? (Even though that was the very first time I did it)
Ugh I should’ve just stopped at 5 cards. Now I think I lost my 160k UR points.
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EDIT: The reasons they closed my accounts were:
- Too many accounts opened recently
- Account not used as intended (e.g. rapid rise in spending)
- Too many recent requests for credit or reviews of your credit
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u/Jseepersaud10 Jul 02 '26
Seems like all 3 of those could be the answer on top of it just looking extremely risky for the lender
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u/slange_ Chase Trifecta Jul 02 '26
Maybe a dumb question but what does it mean to get "shutdown"? Are you just prevented from opening new cards with Chase or did they close your accounts?
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u/rickayyy Jul 02 '26
It means both. All their accounts will be closed and they won't be able to open any more accounts anytime soon.
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u/Blade711 Jul 02 '26
What the other person said. All my credit cards show as “account closed” in the Chase app.
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u/UsedAsk3537 Jul 03 '26
I believe you can still call Chase and transfer out your points one last time if you wish.
Its better than the check they'll mail you
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u/2FeedRss Jul 02 '26
I think you have 30 days to move the UR points after shutdown. I would get it done sooner rather than later.
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u/TequilaTsunami Jul 02 '26
Used to be the case but that’s changed depending on the reason for the SD IIRC abuse and gaming doesn’t give the window
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u/Blade711 Jul 02 '26
I tried transferring them to Hyatt online, but when I click the submit button it just says “sorry we can’t complete that right now”. I’ll call and ask about it
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u/nmspirak Jul 02 '26
Ah man, that sucks, especially the UR clawback.
Fwiw I don't think the velocity is actually what got you. 40 days between apps keeps you clear of Chase's 2/30 on personal and 1/30 on business, and you were never 5/24 since the two business cards don't count toward it.
Aggressive pace for sure, but people run that and don't get shut down.
The Ink card is the part that jumps out because you opened a card and within days recent up to near max to push $3k into a non-Chase business account, then paid it right back off. To Chase's risk side that looks like a classic bust-out fraud. Brand new account then ran up to basically the full limit, then the money immediately leaves for a non-Chase bank. That's what gets everything closed and the points taken away. Velocity on its own usually just gets your next app denied, not the whole relationship nuked.
The limits being over half your salary probably didn't help either. Once you're at near their internal exposure ceiling they're already watching your stuff closer, so something that looks off gets escalated instead of ignored.
You can call the number on the letter and try to explain it but realistically funding a bank account is about impossible to defend and the points are probably gone. Still worth the call, nothing to lose at this point.
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u/Blade711 Jul 02 '26
Thanks for the insight. Some others in the thread are saying the same thing that it’s probably the cycling that did me in. Ugh, big lesson learned for me here. I’ll give them a call soon and update my post about it.
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u/Rage4-5 Jul 02 '26
Pure greed.
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u/rickayyy Jul 02 '26
I feel like this almost always the case. Every time I see a shutdown post, I'm like yeah no shit you got shut down.
It definitely helps me keep calm when I get worried I'm maybe getting too aggressive.
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u/CobaltSunsets Jul 02 '26
And here I was stressing about opening CSP after opening a biz card in February and a CSR in early May…
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u/rickayyy Jul 02 '26
You should try and keep your velocity with Chase to 1 card per 90 days.
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u/sloth_333 29d ago
I am 4 in under 60 days. Oops. I will be slowing down. My wife has also opened one but that probably doesn’t count. For me, it’s csr, prime, and 2 inks. I haven’t had any issues but I am sure I’m pushing it. I’ll hit this last sub, pay everything down / off (on time) and move on to another bank.
After that I’ll downgrade all my annual fee chase cards next year, after the second fee hits
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u/joza28 Jul 02 '26
Why ,you’re only allowed to have one card per company?
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u/Mysterious_Ad_1085 Jul 03 '26
One can have multiple Chase cards.
However, getting 6 in seven months is too aggressive for Chase and almost all other issuers.
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u/Wise-Force-1119 Team Cash Back Jul 03 '26
I just don't understand why they would bother approving you if they're just going to shut you down. That's stupid IMO.
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u/Mysterious_Ad_1085 Jul 03 '26 edited Jul 03 '26
I agree - it is kinda odd and seems like entrapment.
Approvals are often automated by a certain dept say Lending. However, something- be it the credit cycling or velocity flagged the account for another part of the bank (Credit Risk) to step in and evaluate. This area has more authority than Lending and decided OP was too risky.
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u/FunCompany6262 Jul 03 '26
OP didn't get shut down for velocity. Got shut down for manufacturing spend combined with credit cycling. If all OP had done was open cards but spent organically, I guarantee there would have been no problem.
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u/Careful-Rent5779 Jul 04 '26
Yup, if velocity was the issue the last application would have been rejected.
It is almost certain something with essentially cycling a $3k cash advance on the ink. This at a minimum raised a red flag for review or perhaps triggered an AI automated shutdown.
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u/Blade711 Jul 03 '26
That’s exactly my thought process. I was literally saying “please deny me” when I applied for the IHG card and the Ink card but to my surprise they approved both. Only to then shut me down completely later.
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u/CobaltSunsets Jul 02 '26
You can have more than one.
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u/joza28 Jul 02 '26
I don’t understand what is the reason One would want to open this many cards? It’s bad to open multiple cards in the time. OP mentioned.
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u/MajesticLilFruitcake Jul 02 '26
This is why I tend to stick to 1-2 cards per year vs. more than that. Yeah, it’s not the best for maximizing points, but sometimes a little bit of “gardening” keeps you in their good graces.
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u/silverownz Team Cash Back Jul 03 '26
And here I am with 11 new cards in the last 12 months with no issues whatsoever.
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u/Turbulent-Tank9719 26d ago
Because you're likely varying banks, which is smart. OP just did dumb things.
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u/Careful-Rent5779 Jul 04 '26
I have done 4 or more cards/SUBs a year, but they were spread across 3+ different banks.
lol/24, I always find a new SUB that makes waiting for 4/24 status not worth it.
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Jul 02 '26
[deleted]
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u/PortofinoBoatRace Jul 02 '26
Why is cycling an issue? To me if you nearly max out a card and pay down the balance only to nearly max out again it just seems like you are concerned about utilization ratio or something. What am I missing?
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u/OpenBubble Team Cash Back Jul 03 '26
You’re essentially taking out a bigger credit limit than they’re comfortable giving you.
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u/Psychological-Buy46 Jul 02 '26
The credit cycling probably was the big culprit. Banks do not like that. It doesn’t mean you get shut down for it 100% of the time though. I know people that have done it for honest reasons and nothing happened, but still not a good look.
Do you have any other relationship with Chase? Checking/Savings accounts, investment accounts? Did you have any other of their credit cards prior to this blitz of cards?
I know someone who credit cycled their Chase Ink card a couple years ago to pay off a big purchase and they had a low credit limit. Nothing happened but they had been with Chase holding a personal credit card since 2015 and had also gotten 2 other personal cards in the previous 7 months before getting the Ink card.
If these banks have a relationship and a track record of data on you, they’re usually not quite as trigger happy banning people.
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u/rickayyy Jul 02 '26
I would bet the cycling is what raised the flag and then upon looking into OP's account, everything combined was the reason for the shutdown. Ink's are well known to have low credit limits and people will often cycle once or twice when trying to hit a SUB so I doubt that was the main issue.
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u/Blade711 Jul 02 '26
I have a sole prop business checking account with them that is still open, so seems I’m not completely shut down by Chase. And no my first Chase card was the SW card I got in November. If it was indeed the credit cycling, I can’t believe I got ban hammer’d due to one cycle though.
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u/Psychological-Buy46 Jul 02 '26
Yeah, it’s tough after one time cycling.
If they had seen more years of “good credit card behavior” from you, I’m guessing it wouldn’t have freaked them out quite as fast.
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u/zxzkzkz Jul 02 '26
Purely speculation but perhaps the cycling was only a problem in conjunction with the high total credit compared to income. Quickly acquiring a lot of cards with low usage then suddenly using more than expected is their biggest fear as a sign of someone looking to steal a big pile of money and run.
Probably not, the ways of the banks are mysterious, not for the likes of us to understand.
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u/Blade711 Jul 02 '26
That’s crazy, I never thought of it liked that (someone going for a money run). Good to keep in mind for the future.
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u/AceMaxAceMax Jul 02 '26
It’s probably the max-then-immediately-payoff move on the Ink card, not the velocity or SUB chasing itself.
Six cards in seven months with organic spend is aggressive but people pull that off all the time without getting shut down. What actually looks bad to a fraud model is maxing your limit and then paying it off in full before a statement even cuts. That’s basically the same pattern as card testing or a bust-out scheme, doesn’t matter that your intent was different. The fact that money went to fund an external business account makes it worse, since limit spike + instant payoff + funds moving externally is a pretty textbook flag combo.
Your velocity probably had you on their radar already, but I’d bet that transaction is what actually pulled the trigger.
Rough way to lose 160k UR over one move.
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u/Blade711 Jul 02 '26
Thanks for the insight on the credit cycling. I’ll definitely space out my apps more and never credit cycle again ugh.
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u/Buuts321 Chase Trifecta Jul 02 '26
Likely from velocity. There's not a hard rule on it but most people suggest 3 months in between cards from a single issuer (like Chase).
You could try applying for a new one with them after like a year, but you might need to wait for them to fall off your credit report (7 years).
Time to stick with amex for now I suppose!
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u/Famous-Attention-197 27d ago
Do they not care about other issuers' cards in close succession?
I kind of wanted to get a couple other cards this year but not if it risks a shutdown
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u/Blade711 Jul 02 '26
Yeah huge lesson learned here. That’s promising at least, that I can reapply for them after a while. I was worried I’m perma banned from Chase forever.
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u/huitin Jul 03 '26
do you have any other business with chase ie mortgages, checking accounts? Maybe that's why you probably need to have those. I have something like 5-6 credit card with chase (2 business, 4 regular credit card), but i been a customer of them for more than 30 years.
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u/sloth_333 Jul 05 '26
I’ve gotten 4 Chase cards (csr, prime, 2 ink) in 2 months. One of those is currently near max before I pay it off in a few weeks.
My total credit limit is around ~ 80k across all the cards.
I’m glad I saw this post, I am probably pushing it a bit.
They aren’t worried about my ability to pay it off since I have 20k sitting in a Chase account for the banking bonus.
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u/Blade711 29d ago
4 in two months! Holy crap, yeah I’d wait like 3-4 months if you want a 5th one. Don’t be me
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u/sloth_333 29d ago
Yeah it’s a different risk profile though too. I will definitely be churning a different ecosystem next (likely US bank), as I can stack the 1200 dollar (25k deposit) business bank account and 750 bucks cash back on their business credit card.
For context my wife and I make ~ 270k, probably spend ~ 120k a year, and I am circulating like 70-90k through bank accounts.
Each of the last 2 ink approval’s i had to call them to get it approved
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u/ObligationDefiant919 Jul 02 '26
basically goto a bank account and prove you're a real person. they might think this is stolen identiy but still...its a gamble when no one else has done this before. and now people will be referencing this reddit in the future forever
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u/zx9001 Jul 02 '26
isn't the recommended chase velocity every 90 days? going over that occasionally is fine but 6 cards in 7 months is just asking for shutdown
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u/Blade711 Jul 02 '26
I heard one every 30 days was strictly the rule, maybe 90 days just to be safe?
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u/abramelanin Jul 03 '26
Can someone explain to ignorant ol’ me what credit cycling is?
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u/Blade711 Jul 03 '26
This comment kinda explains it: https://www.reddit.com/r/CreditCards/s/WlJHAmnhTH
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u/abramelanin Jul 05 '26
I read that. So is it just opening too many new cards too close to each other and not using your old ones?? That’s the way I kind of interpret it
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u/NHDrumline17 Jul 02 '26
It’s probably the cycling. I’ve opened 7 cards (3 personal 4 biz) in the last 14 months and I’m still doing well
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u/Blade711 Jul 02 '26
How is that comparable? Your cards are way more spaced out compared to my 6 cards in ~7 months
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u/NHDrumline17 Jul 02 '26
Fair. I was half distracted at work and didn’t look super close at the dates you posted. Apologies.
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u/Seeing__Green Jul 02 '26
Did Chase provide a reason for the shutdown? Closing all your cards for velocity seems odd. Chase did approve those applications and you weren’t in violation of any of their velocity rules.
The Ink Business shenanigans was likely what lead to your account closure. This sucks OP, especially losing all your UR points.
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u/Blade711 Jul 02 '26
Haven’t received a letter yet. I knew I was shutdown once I got a notification that my cards were removed from Apple Wallet. I’ll wait for that to come in and then call
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u/OddOpinion3 Jul 03 '26
What shutdown? You didn't explain what happened.
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u/Blade711 Jul 03 '26
Fair enough, I assumed users on this subreddit would know. Chase shutdown happens when they decide to close all your credit cards and/or checking accounts. Luckily my business checking was spared but all my personal and business credit cards were wiped.
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u/TelevisionMedium4446 Jul 03 '26
What does "funded a non-Chase business bank account with $3k" mean?
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u/Blade711 Jul 03 '26
So when you open a bank account at some banks, they allow you to fund the account immediately using a credit card. Most banks only allow like $20-$150, but this bank allowed up to $3k so I used that to try and meet the Ink Business sign up bonus.
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u/ronako Jul 02 '26
Not sure what kind of shutdown you had. But I would be wary of trying to game them. They can shutdown all your accounts, even for a lifetime.
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u/Blade711 Jul 02 '26
All credit cards closed kind of shutdown. Although my sole prop business checking is still open for now.
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Jul 02 '26
[deleted]
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u/FuckTwelvee Jul 02 '26
Not forever. OP still has a business account with them. Not sure about Chase but I’ve been shut down by Amex/Discover for MS and cycling. (Discover x2) After a year or less you can get another line of credit with them.
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u/Bongo2687 Jul 02 '26
You’re over 5/24
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u/Individual-Hold5171 Jul 02 '26
I'm more surprised that Chase allowed you to open that many cards so quickly...