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Make Sure You Cancel Your Card Before The Annual Fee Hits




In August 2013, I opened a Chase United MileagePlus Explorer card thinking I would utilize it more than I would. I wound up closing the card, but it was actually after the annual fee assessed. I paid the annual fee, then called Chase that I wanted to close the card.

As with all of my personal Chase cards, I called Chase Sapphire Preferred phone number. I gave them my last four digits to the Explorer card and told them my situation. It turns out they couldn’t close the card and forwarded me to a special United credit card desk.

I wasn’t able to convince them to give me something for paying the annual fee and keeping the card, so I told them to close the card. They closed my card no problem and gave me credit for the annual fee I paid. However, I lost $500 worth of credit line.

credit card

 

When I originally called to close the account and there was a credit, the very first agent told me $500 had to remain. Now that it has cleared, the agents now can’t do anything about the $500 moving around. Therefore, I lost $500 in credit line. While it’s not the end of the world, don’t make the same mistake I made and letting the annual fee assess and you get a credit back.

So remember to do something before your annual fee hits, otherwise you’ll face a situation like I did. For Citi cards, it seems that you can product change anything with Citi into something else. Be sure to check out the comments on Miles4More.

8 comments… add one
  • The $500 CL requirement is standard with Chase if there is recent activity on the account (it’s a silly policy). I think you need 3+ months of zero balance to be able to consolidate the entire CL upon closing.

    Reply
    • Yea it’s completely beat how it’s set up that way

      Right on the 3+ mo’s as well, so you need to plan ahead. Chase is really tough on product changes. Needs to be within the same product family.

      Reply
  • You can ask to be transferred to Lending Services. They’ll let you transfer the entire CL to another card.

    Reply
    • I was able to transfer almost all of it except for the final $500 because of previous “activity”

      Reply
  • Have you ever gotten into a situation where that extra $500 of credit limit actually got you anything? I mean I know I don’t do a ton of MS, but I’ve never been in a place where that would have made a difference. YMMV I guess

    Reply
    • It’s not the end of the world – just some credit that I didn’t want to lose if I had planned properly and more of a notice to folks who are looking to do something like this in the future

      Reply
  • Disagree. I always wait until AF posts – get better retention offers. CL is never a consideration for me.

    Reply
    • I will have to agree with you, retention offers would be nice. However, I am 1 for 5 in getting those offers. The only one that I’ve gotten was for the Ink Bold where they credited me $95 for the annual fee

      Tried for:
      First US Airways
      BAC Alaska Airlines
      Citi AAdvantage card (not sure if I wanted one since I do like the idea of the Dividend)
      Chase Ink Bold
      Chase United Explorer

      Reply

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