topic Re: Balance transfer approval not high enough? in Credit Cards

Balance transfer approval not high enough?

LuckyBird — Fri, 05 May 2017 20:23:55 GMT

Does anyone know what happens in this situation?

My friend has a credit card at Bank of America already, $25,000 limit but a $20,000 some-odd balance. Also has a balance of $18,400 on a $25,000 NFCU card, which the interest-free period just ran out on. She was looking to increase the limit on her BoA card & try to move it over there, but when she logged in to request a CLI she saw that she was pre-approved for another (balance transfer) card with BoA.

She put in the application, during which she was asked about her requested amount for balance transfer. She put in the $18,400 amount for NFCU. She was approved, but only for $8,000. Does this negate the balance transfer, since the limit's not high enough for the whole balance, or will they send NFCU $8,000? This would actually put her in a worse situation than she's currently in since the balance would be more spread out.

Anybody know what she can expect here?

Edited to add: She just told me she also has an Amex business card - $0 balance on a $20,000 limit. Can you do a balance transfer to an Amex business card?

Re: Balance transfer approval not high enough?

CreditInspired — Fri, 05 May 2017 20:41:14 GMT

I suggest calling the issuer and requesting a higher credit line and reiterating that you are requesting an additional $10,400 + transfer fee to do a BT.

Re: Balance transfer approval not high enough?

K-in-Boston — Sat, 06 May 2017 01:13:50 GMT

Indeed, I would call BOA and try to recon that starting limit, although there is a chance that the two cards combine to hit her internal limit with BOA. I am assuming it was the BankAmericard? If no go, then cancel or modify the BT (BOA does not do immediate BTs on new accounts, there is a lag time) to fit her needs. I can say for sure that Discover will still automatically process a BT for a lower amount if the SL is lower than the request, but have not run into that with BOA.

Re: Balance transfer approval not high enough?

MyLoFICO — Sat, 06 May 2017 07:14:59 GMT

@LuckyBird wrote:
Does anyone know what happens in this situation?

My friend has a credit card at Bank of America already, $25,000 limit but a $20,000 some-odd balance. Also has a balance of $18,400 on a $25,000 NFCU card, which the interest-free period just ran out on. She was looking to increase the limit on her BoA card & try to move it over there, but when she logged in to request a CLI she saw that she was pre-approved for another (balance transfer) card with BoA.

She put in the application, during which she was asked about her requested amount for balance transfer. She put in the $18,400 amount for NFCU. She was approved, but only for $8,000. Does this negate the balance transfer, since the limit's not high enough for the whole balance, or will they send NFCU $8,000? This would actually put her in a worse situation than she's currently in since the balance would be more spread out.

Anybody know what she can expect here?

Edited to add: She just told me she also has an Amex business card - $0 balance on a $20,000 limit. Can you do a balance transfer to an Amex business card?

I was looking into an AMEX business card this week and read somewhere that the interest rate can be adjusted on the fly at the lenders will and they usually will change it if they feel like they are at risk. I read that AMEX does not like BT's and that those should be kept to personal cards.

Re: Balance transfer approval not high enough?

NRB525 — Sat, 06 May 2017 15:18:49 GMT

Yes, BofA will proceed to balance transfer an amount from the NFCU card to fit on the $8k limit, less fees.

Yes, your friend is probably already at their internal BofA limit. Enjoy the $8k.

Back in the days of the dinosaurs I would include proposed BT amounts and accounts on the paper applications that I mailed in. Sometimes three BT proposals. Those would be filled up, BTing from one, two, or part of three cards, to just under the limit (less BT Fees) of the new credit line. Presto-Chango a 95%+ utilization card!

In the modern age, with on-line apps, I would not suggest anyone include a specific proposed BT request with an application, just because of this scenario. After getting the card and activating it, follow on a few days later with the BT request and control the amount you are BT'ing.

Re: Balance transfer approval not high enough?

K-in-Boston — Sat, 06 May 2017 15:46:10 GMT

That last part is great advice. After that Discover mistake where I just assumed my large BT would not go through, I started using the card and they reported me mid-first-cycle at like 98% util. Now I leave them blank. Back in the mail-in days, I would also always include BTs in expectation of a much larger starting line.

Re: Balance transfer approval not high enough?

Anonymous — Sat, 06 May 2017 16:00:58 GMT

@NRB525 wrote:
Yes, BofA will proceed to balance transfer an amount from the NFCU card to fit on the $8k limit, less fees.

Yes, your friend is probably already at their internal BofA limit. Enjoy the $8k.

Back in the days of the dinosaurs I would include proposed BT amounts and accounts on the paper applications that I mailed in. Sometimes three BT proposals. Those would be filled up, BTing from one, two, or part of three cards, to just under the limit (less BT Fees) of the new credit line. Presto-Chango a 95%+ utilization card!

In the modern age, with on-line apps, I would not suggest anyone include a specific proposed BT request with an application, just because of this scenario. After getting the card and activating it, follow on a few days later with the BT request and control the amount you are BT'ing.

Very good advice. Far too many people assume that if you initiate the balance transfer request at the time that you apply that the credit ca issuer will automatically issue a limit high enough to cover or more. Instead what happened to the OP's friend happens and the applicant is left with a maxed credit card as soon as they are approved.

Re: Balance transfer approval not high enough?

HeavenOhio — Sat, 06 May 2017 16:09:18 GMT

If I remember correctly, when I applied for my AMEX BCE, I wasn't offered the opportunity to do a balance transfer until I already knew my limit. Someone's going to have to confirm whether my memory is accurate, though. Had I actually done a transfer, I'd likely remember how it worked.

Re: Balance transfer approval not high enough?

CreditInspired — Sat, 06 May 2017 16:31:42 GMT

@NRB525 wrote:
Yes, BofA will proceed to balance transfer an amount from the NFCU card to fit on the $8k limit, less fees.

Yes, your friend is probably already at their internal BofA limit. Enjoy the $8k.

Back in the days of the dinosaurs I would include proposed BT amounts and accounts on the paper applications that I mailed in. Sometimes three BT proposals. Those would be filled up, BTing from one, two, or part of three cards, to just under the limit (less BT Fees) of the new credit line. Presto-Chango a 95%+ utilization card!

In the modern age, with on-line apps, I would not suggest anyone include a specific proposed BT request with an application, just because of this scenario. After getting the card and activating it, follow on a few days later with the BT request and control the amount you are BT'ing.

Thanks for this advice.