Bank of Anerica lowered limit on one card to increase another

[ryder32244]

So I applied for a CLI on my BOA card and was raised from 5k to 11k approved. So I decided to try my other BOA card and request it from 17k to 24k, it was denied. 

Then I got a letter that my first card is still approved at 11.k, but my other card was reduced to 11k! I guess they must have me approved for a max of 22k internally, kind of pissed me off they did this without clearly making me aware, the rep said it was in the fine print, so I must have missed it. 

I assume all CLIs have that discolsure, so now Im scared to ever ask for a BOA inclease because it could reduce the other. 

My score is 778

w/2 Income about 350k

20 cards lines range from 10k-75k

Utilization 3%

3 new accounts in the past year, 2 of them were the BOAs

I have balances on both with 0% till Sept 23' and have auto pay set to make equal payments to pay it off a month beofr emy 9% expires. Could that be that my payments are too low? I was just trying to streatch my 0% out else I would have paid it off months ago.

Another factor may that I have a checking and savings with maybe $300 in between them that I havent touched in 5 years. I just left it in there when I switche dmy normal banking to my credit union. Could it be that they are looking at my low balances and think I dont have the funds?

Any tips here? Or how do you all handle BOA in this situation? 

[FinStar]

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@ryder32244 wrote:

So I applied for a CLI on my BOA card and was raised from 5k to 11k approved. So I decided to try my other BOA card and request it from 17k to 24k, it was denied. 

Then I got a letter that my first card is still approved at 11.k, but my other card was reduced to 11k! I guess they must have me approved for a max of 22k internally, kind of pissed me off they did this without clearly making me aware, the rep said it was in the fine print, so I must have missed it. 

I assume all CLIs have that discolsure, so now Im scared to ever ask for a BOA inclease because it could reduce the other. 

My score is 778

w/2 Income about 350k

20 cards lines range from 10k-75k

Utilization 3%

3 new accounts in the past year, 2 of them were the BOAs

I have balances on both with 0% till Sept 23' and have auto pay set to make equal payments to pay it off a month beofr emy 9% expires. Could that be that my payments are too low? I was just trying to streatch my 0% out else I would have paid it off months ago.

Another factor may that I have a checking and savings with maybe $300 in between them that I havent touched in 5 years. I just left it in there when I switche dmy normal banking to my credit union. Could it be that they are looking at my low balances and think I dont have the funds?

Any tips here? Or how do you all handle BOA in this situation? 

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While the outcome may seem upsetting, the agent was correct -- it is in the fine print. There are a few reasons why some of these situations may occur -- which btw it happens with others like AmEx, WF, etc.

The outcome can be driven by internal criteria, so your internal behavioral score (which is not shared/released by BoA), may have played a role. Another factor, your income versus what BoA is willing to extend given current obligations elsewhere or if you have sufficient available credit with other lenders.

Having a small balance parked on your checking/savings account would not have much bearing with BoA. Another factor would be your overall usage (or lack thereof) on one or both of your BoA cards combined. If you're carrying some significant balances on either card, maybe your monthly payments are not proportional enough to nudge additional extensions of credit. If the account for which the limit was carved out was determined to be infrequently used, then their system assessed those factors and carved out a portion of that limit and reallocated it to the other account.

[markbeiser]

To be fair to BofA, right above the "Submit" button on the CLI request page, there is a box with normal size print that says:

"If you have credit card accounts with Bank of America, we may use the available credit on those accounts to approve your request. This could include moving credit from an account with a lower annual percentage rate and/or fee structure to a higher annual rate and/or fee structure without increasing your overall credit limit."

Have you tried calling them?

[ryder32244]

Yes, I called them and Im fully responsible for missing the note about them possibly rebalancing. 

Im way past the disclosure, what Im asking is how to navigate it smartly. Is there a way to avoid this or am I stuck with risking a decrease on one card to increase another. It sounds like the later, was just looking for some tips. Thanks

[ZackAttack]

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@markbeiser wrote:

Have you tried calling them?

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The OP mentions it in the second paragraph about the rep part.

[ZackAttack]

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@ryder32244 wrote:

Yes, I called them and Im fully responsible for missing the note about them possibly rebalancing. 

Im way past the disclosure, what Im asking is how to navigate it smartly. Is there a way to avoid this or am I stuck with risking a decrease on one card to increase another. It sounds like the later, was just looking for some tips. Thanks

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If you don't like what that does, you are more welcome to close one card ... or try again in the future in hopes they don't pull each card's credit limit.

[ryder32244]

Sounds like the right approach is to transfer the limit to one card and close the other so that moving forward I either get an icrease or Im denied. I can live with that. 

The suprise is what I cant live with.

[ZackAttack]

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@ryder32244 wrote:

Sounds like the right approach is to transfer the limit to one card and close the other so that moving forward I either get an icrease or Im denied. I can live with that. 

The suprise is what I cant live with.

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Yeah, Don't forget what @FinStar also said. BOA is usually a relationship bank so don't be surprised if you get a denied reason for that (something on the lines of "lack of relationship").

GL keeping a SHARP eye on the TOS on the cards.

[FinStar]

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@ryder32244 wrote:

Sounds like the right approach is to transfer the limit to one card and close the other so that moving forward I either get an icrease or Im denied. I can live with that. 

The suprise is what I cant live with.

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Totally understandable @ryder32244.

I think that most folks don't typically look into the T&Cs and once the submit button is clicked, the expectation is that if the request is approved most wouldn't expect a 'rob Paul to pay Peter' scenario. I get that. Until one looks in horror, dismay, sad trombones (pick your feeling) and see the other account's CL reduced.

Personally, if you value the 2 cards benefits-wise, I would not close them. Let time do its thing. Perhaps increase the amount of your monthly payments, even if you have an active BT going on. You have adequate income based on what you shared upthread so I don't think that's the issue. Sometimes inquiries can be a thing with BOA CLIs. When you receive the letter, perhaps you can share what it states as the reason for the reallocation versus a straightforward CLI. And, maybe we can revisit a strategy that may work for you.

[Aim_High]

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@ryder32244 wrote:

... so now Im scared to ever ask for a BOA inclease because it could reduce the other ... 

Any tips here? Or how do you all handle BOA in this situation? 

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As others stated, @ryder32244, this practice is disclosed by BofA and may be done by other lenders also, so your situation is not unique. I've personally experienced this with BofA, especially as I experimented with breaking the $99.9K ceiling with them once I reached it. (Never got a higher TCL approval than $99.9K though.)

But it's no biggie and nothing to fear. You can easily move limits around with them over the phone, so if they move it and you don't like it, just move it back!  Nothing is lost; only temporarily relocated.