no secret close credit card may result in the loss of unused credit card points. That’s why we recommend redeeming or transferring your credit card points before closing your card.
However, have you ever thought that a misunderstanding in a phone call can cost you all your credit card points?
Today, TPG reader Erik weighed in with the nightmare of losing 750,000 Chase Ultimate Rewards points:
In September, I called Chase to consolidate my credit line from Ink Business Preferred® credit card with me World of Hyatt corporate credit card. I’ve done this before when I moved lines of credit to another account and left smaller lines of credit on an old account to keep it open.
During the call, I wasn’t sure if I made a mistake, but my entire credit line was moved, which caused my Chase Ink Business Preferred account to be closed. My intention is not to close the account, because I need my Ink Business transfer 750k points My Hard-earned Ultimate Reward for partners to buy back. Just last month, I paid last month’s annual fee for Ink Business Preferred and have no intention of closing the account.
On November 11, about 40 days after my call with Chase to transfer my credit line, I logged into my Chase account with the intention of transferring Final Rewards points to plane (while 30% transfer bonus will take place in November) and there is no final Rewards Points balance. I immediately called Chase as soon as I found out and created a ticket and escalation. I also went to my banker Chase Preferred Clint on November 12 to ask for their help.
On November 17th I received a call from my banker saying that because the account had been closed for more than 30 days they were unable to recover my points. My banker said it appeared they had reviewed the phone recording and noticed that a Chase customer service representative had read me the disclosure. Although I can’t remember if this happened, but if the disclosure was read and transparent, this is my fault.
Since finishing college, I have worked closely with Chase. More recently, we were looking to open an account for our 3-year-old daughter at Chase and asked for approval before we even thought about buying our first home. Everything banking and investing is for us is at Chase.
Losing 750k Ultimate Bonus is heartbreaking. My first credit card in college was a United Chase card, and we were planning to redeem my Ultimate Rewards points for a special family trip. These points will be worth $9,375 in Chase Portal for travel but can be of a significantly higher value if transferred.
It’s painful, heartbreaking, and devastating. I feel ‘robbed’ by my bank.
When Erik reached out to our founder Brian Kelly on Instagram, we felt terrible for Erik. TPG value 750,000 Ultimate Rewards points at $15,000, and after years of earning points through his devoted patronage of Chase, Erik is finally gearing up for a big redemption with his family.
Related: Great All-Inclusive Business Card: Ink . Business Preferred Credit Card Review
Why you might want to transfer your credit line to another account
If you have multiple accounts with a bank, you can often transfer your credit line from one account to another. In general, banks allow this because you will maintain the same accumulated credit limit. You may consider transferring your credit line to another account for a number of reasons.
First, here’s the obvious — if you’re planning to close your account and want to keep your current total credit limit, you can ask your bank to transfer your credit limit to another card first. when closing the account.
When you’re ready to sign up for a new card, banks also often review how much money you currently have with them. Opening a new account can be more difficult if you’re close to maxing out.
If you don’t open or close an account, it can be helpful to transfer your credit limit to another card if you use one card for most purchases. Or, in other words, transferring a line of credit to another account can give you more purchasing power.
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Also, if you use one card more than the others, you can reduce credit utilization rate (the percentage of your credit used at once), which can benefit your credit score.
Related: Is 30% credit card usage a magic number?
bottom line
Erik had no intention of closing his Ink Business Preferred card, but the mistake of transferring his entire line of credit to his Hyatt Business card resulted in his Ink Business Preferred account being closed — and subsequently, the number His unconverted Ultimate Rewards points are voided.
Thankfully, this story has a happy ending. Erik worked with Chase and his Private Banker to get the points back into his account after a lengthy appeals process. This takes a ton of time and energy, not to mention the stress of (temporarily) losing points worth thousands of dollars.
With that in mind, you should always make sure your phone dealers know exactly what you’re aiming for before action is taken. If you have any questions or doubts, as a customer you have the right to request to speak to a supervisor or manager. As always, make sure to regularly check your loyalty account.
