Should I open a checking account with Chase?

[bluemartini]

I did a Chapter 7 BK earlier this year and discharged $177k in Chase mortgage debt and about $12k for two Chase credit cards.

The case was discharged in March and closed in June.

So now in the mailbox I've got this coupon from Chase bank offering me $125 to open a checking account with them.

I was planning on switching banks anyway because I'm unhappy with my current bank. And I would love to take advantage of the $125 incentive.


Would love opinions on whether this is a safe thing for me to do. I'm paranoid that they will seize my deposit, LOL. I only have $500 in savings and I could switch my paycheck to direct deposit to avoid a monthly checking fee.

[drowning123]

I discharged a Chase account and now I have my checking and savings accounts with Chase. It's fine.

[OweTooMuch]

In all my dealings with Chase I would stay as far away from them as I could.

[LadyInTheRed]

On the date of your discharge, the automatic stay was replaced by a permantent injunction prohibiting the collection of discharged debt. It would be illegal for them to cease your deposit to cover a discharged debt. Not that big banks don't ever break the law. But, I think you are pretty safe opening an account.

[bluemartini]

OK, well I just checked my credit report out of curiosity.

The Chase mortgage is listed as "discharged in Chapter 7 BK" by all three reporting agencies.

But the two Chase credit cards are listed as "account status - in collections." The balance is listed as $0 due by all three. All three also say that the account has been charged off and sold to another lender.

So do you think the Chase credit card people think I still owe them? Maybe they haven't gotten the word from whoever bought my account that the account was BK'd?

Ugh. I wish I had the nerve to go online and open that bank account. I want that $125.

[drowning123]

Blue, it's no problem. Open the account. I've been with chase for months now and so far so good.

[bcohen]

Run, don't walk--as far and as fast as possible--from anything to do with Chase Bank!

The Chase $125 "bonus" is a scam and a trap designed to lure you into opening an account that is so heavily laden with fees that the so-called "bonus" will be gobbled up long before the 6-month minimum that you're required to keep the account open for. The $11 "monthly maintenence fee" on this non-interest bearing checking account is a rip-off, and that doesn't even include getting a paper statement, or getting a statement with check images! I use a credit union--I have checking and savings there--and I don't pay a dime in fees. Not only that, but they pay me interest on the balances (not much, but a small fraction of a percent) and they give paper statements with check images at no additional cost. Plus there's the benefit of doing business with a local company that exists to serve you and your neighbors--not to line the pockets of Wall Street investors!

[drowning123]

Like I said, my experience with Chase is not the same as someone else's.

[scorpion35]

i have PNC and love it

[bluemartini]

Thanks for the info everyone. I think I am going to go for it.

I just went back and looked at my credit report and noticed that all three credit reporting agencies list the Chase credit cards as $0 balance, $0 past due. I think I am safe.

This $125 coupon is good through Sept. 25. I think I want to get enough cash together to pay the September rent in cold, hard cash and then I'll open the Chase account. At that point I'll have enough time to start switching all of my billing info online with utilities, cable, etc. until the direct deposit paychecks start going through Chase.

BTW I will have direct deposit of my paycheck into the Chase account, so there will be no monthly fee. I rarely use ATMs so I won't have to worry about ATM fees, either.

I am finding it more than a little ironic that I BK'd two Capital One cards back in March, and today I just activated a brand new Cap One MasterCard; and am also going to get a $125 incentive from Chase, after I BK'd approximately $200,000 with them.

What a turn of events compared to three years ago when I defaulted on everything and was being hounded by Chase and Cap One. Now I'm a valued customer, I guess!

Even weirder -- when I activated the Cap One card today, I signed up for billing protection (99 cents per $100 on your statement balance) because the customer service rep explained that if you have a change of life event such as getting married or having a baby, Cap One will pay your bill for three months in a row, as long as you notify them in advance with a phone call. I'm planning on getting married in a few months so I guess I'll get a three month free ride from Cap One when that time comes!

[LadyInTheRed]

Even weirder -- when I activated the Cap One card today, I signed up for billing protection (99 cents per $100 on your statement balance) because the customer service rep explained that if you have a change of life event such as getting married or having a baby, Cap One will pay your bill for three months in a row, as long as you notify them in advance with a phone call. I'm planning on getting married in a few months so I guess I'll get a three month free ride from Cap One when that time comes!

Not weird at all. Those fees add up over time and the banks make money off of them. They wouldn't offer it otherwise. You basically just added 11.88% per year to your interest rate. I suggest putting money in savings instead to cover your minimum payments if you can't pay them. At least read all of the terms of the protection and understand them before you decide to keep it. Also, Google "capital one billing protection"

ETA: It just occurred to me: You apparently plan on carrying a balance on your card. Think long and hard before doing that. Heed the most important lesson of Bankruptcy: Save money and pay for things with cash. Only make charges on your credit card when you have cash in your account to pay them off and pay the balance in full as soon as you receive the bill.

[bluemartini]

Thanks for the insight, Lady In Red. At first I wasn't going to accept the billing protection but I asked the customer rep detailed questions about it and she insisted there would be no monthly charge or fee for it -- unless I carry a balance.

I do NOT plan to carry a balance! Oh, HECK no! LOL.... No way, no shape, no form, no how!

This card is strictly for Netflix and Weight Watchers dues that won't amount to more than $30 a month in charges. Believe you me, that balance will be paid in full and on time monthly.

Except of course when I get married, then I guess Cap One will apparently pay the bill. I guess that means I'll get Netflix for free three months in a row?

The lady said she would send me the info in the mail and if I wanted to cancel within 30 days I could. So if there's something in the fine print that I missed in the phone call, I'll catch it then.

OK, I'm googling now.

[LadyInTheRed]

I do NOT plan to carry a balance! Oh, HECK no! LOL.... No way, no shape, no form, no how!

Excelllent!

It sounds too good to be true that you can pay off the balance every month, never have to pay the fee and still have them cover your payment in the first 3 months you don't pay. It'll be interesting to find out what's in the fine print.

[bluemartini]

Thanks Lady in Red. I just googled and saw some consumer complaints posted online that people did not get the payments covered when they needed them. I know you can find people complaining online about just about anything, but on second thought I think I'll just cancel it when the paperwork comes in the mail. The lady on the phone assured me there is no charge unless you carry a balance but honestly, I don't need to take that chance.

I thought the annual fee was $29 when I applied online, but the lady on the phone said there was no fee for the first year and then $19 after that. The interest rate is a whooping 24% (yikes!) but that won't affect me because like I said, this is going to be for two small incidental recurring purchases that I'll pay off right away each month.

The paperwork that came with the card said that after five months of paying on time, they increase your credit limit. I heard that higher credit limits help your FICO go up? I'm not sure. But if that IS the case, it would be great becuase I'm trying to rebuild all the damage.

[Logan]

i have PNC and love it

I had PNC and was happy until my rent check showed up late for the 2nd time to my landlord. I was very unhappy with their response especially when they initially tried to blame me so I closed my account. When you say you need the check there by the 1st, the 4th is unacceptable and 2 times was enough.
Now I'm with Perkstreet and I'm very happy.
Logan