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Transfer or Reduce Credit Limits?

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Anonymous
Not applicable

Transfer or Reduce Credit Limits?

I have ~7 cards with Chase, and if I want to apply for cards with them in the future, is it better to reduce the CL's on my cards or try to transfer them CL's to say mainly between 2-3 cards? Thanks in advance!

Message 1 of 12
11 REPLIES 11
Anonymous
Not applicable

Re: Transfer or Reduce Credit Limits?

The better option is to transfer/consolidate NOT reducing the limits.

Message 2 of 12
Anonymous
Not applicable

Re: Transfer or Reduce Credit Limits?

I couldn't tell you for certain,  but outside of their "too many new accounts" denial, you should be able to pull from other cards to open a new card.

Message 3 of 12
Anonymous
Not applicable

Re: Transfer or Reduce Credit Limits?

Do you have cards from other banks? Or do you only love Chase?

Message 4 of 12
Anonymous
Not applicable

Re: Transfer or Reduce Credit Limits?

I say forget Chase and get cards from several other lenders. That is too much exposure with one lender.I would leave the accounts alone.
Message 5 of 12
Dw4250
Valued Contributor

Re: Transfer or Reduce Credit Limits?


@Anonymous wrote:

I have ~7 cards with Chase, and if I want to apply for cards with them in the future, is it better to reduce the CL's on my cards or try to transfer them CL's to say mainly between 2-3 cards? Thanks in advance!


OP...you have too many eggs in the Chase basket.  While I understand they have some nice products, I would suggest (as others have) to diversify a little.  In the unlikely event Chase decided to close your accounts without warning (rare, but it can/does happen), you might be in a world of trouble.  I learned this lesson the hard way a few years back when I was temp unemployed and couldn't pay my bills.  3 of my 4 cards at the time were with Citi and they all got closed same day.  

 

Having cards with a couple of other major banks and even a CU card can help in the unlikely event of an AA.  Much like banks do, you have to manage your own risk/exposure.

 

I now have cards with 8 banks and 1 CU.  So if Chase (for example) decided to close my Hyatt and Freedom cards, it would suck but it wouldnt kill my score.

 

And yes, I'd consolidate those 7 Chasers into 2-3 cards.

Message 6 of 12
NRB525
Super Contributor

Re: Transfer or Reduce Credit Limits?


@Anonymous wrote:

I have ~7 cards with Chase, and if I want to apply for cards with them in the future, is it better to reduce the CL's on my cards or try to transfer them CL's to say mainly between 2-3 cards? Thanks in advance!


What are the limits on the cards, which cards do you already have, when was each of these cards opened? Is there any trend in the starting limits you have gotten from Chase?

On recent Chase apps, have you gotten any direct feedback from Chase that you are approaching their internal limits for your account?

 

Do you have other cards from other banks besides Chase? (Not counting any store cards).

 

Which Chase cards that you do not already have are you looking to app for and what is the expected time frame for that?

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
Message 7 of 12
takeshi74
Senior Contributor

Re: Transfer or Reduce Credit Limits?


@Anonymous wrote:

I have ~7 cards with Chase, and if I want to apply for cards with them in the future, is it better to reduce the CL's on my cards or try to transfer them CL's to say mainly between 2-3 cards?


There isn't a one-size-fits-all answer to a question like this.  First off, better is always highly subjective regardless of topic.  Second, as far as this topic is concerned it all depends on your credit and your internal limit with Chase.  If you don't have the headroom for a new card then you could reduce limits.  However, I'd advise just reallocating when you open the new card.  If you don't need some of those Chase accounts it may make sense to close them out.  You're probably close to the limit on number of cards that Chase is willing to grant an individual.  The catch with doing so is that you don't want to look like you're churning with Chase.  I'd advise reallocating before closing and reallcoating if needed when opening a new account even with that approach.

 

Also do the math to detemine the impact to your revolving utilization to help you in your decision making.

Message 8 of 12
Anonymous
Not applicable

Re: Transfer or Reduce Credit Limits?

Guys, thank you all for your input, here is some more info about the cards I have and their limits. 

 

Chase:

Ritz - $8k

CSP- $7.5k

United MPE - $15k

IHG- $15k

Hyatt - $5k

 

The last card I got from chase, I got a $5k limit on which was the lowest. All my accounts from Chase are less than a year old, the United, IHG, and Hyatt were opened in the last 3 months.

 

BoA:

BBR MC - $17k

Cash Rewards - $17k

Travel Rewards - $6.6k

 

I also do my banking with BoA, the Travel Rewards card was my first CC ever which I got in February of 2014 with a $1500 limit. I just had my CLI increased on it when I applied for the BBR MC and Cash Rewards card about 2 weeks ago.

 

Amex:

Personal Plat

PRG

BCE - $10k

 

Discover IT - $2.5k

 

Macy's - $1k

 

 

 

So, those are all the cards I have.

 

NRB525, based on the last card I got from Chase which is the Hyatt card and the $5k limit I got with it compared to the other cards I got from them, I think I may be approaching their internal limit, but I'm just guessing at that.

 

Revolving credit wise, even when I had 1 card, I kept my util at ~1-5% because I usually pay my cards before the statement hits. I am carrying a balance on my Amex BCE of ~$2k right now, but that's because it's at 0% interest for another year or so, but I'll probably pay it off in the next 2 months, I'm just trying to build a repor with AMEX to get a CLI later down the road.

Message 9 of 12
Anonymous
Not applicable

Re: Transfer or Reduce Credit Limits?

Smiley Happy

Message 10 of 12
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