Moving credit limit's around

[snowkitty]

Yesterday I was approved for the Boa Travel Rewards Visa and I did not get the limit that I wanted so I moved some of my credit limit from my Boa Cash Rewards to the Travel Rewards card. I know that several of you do this and I was just wondering how it looks on your credit reports? Does it appear like you had a credit limit decrease from the creditor? Is is something that throws up a flag of sorts?

[takeshi74]

You'll have a decrease on one and an increase on another.  Shouldn't cause any red flags if the net is 0.

[snowkitty]

---

@takeshi74 wrote:

You'll have a decrease on one and an increase on another.  sHouldn't show any red flags if the net is 0.

---

I did yesterday. I moved 2500.00 from my cash rewards to my travel rewards. I just wonder how it will affect my credit report/score when it shows that my credit limit went from 10k to 7.5k. I don't want it to look like boa decreased my limit to other creditors and them think my lines are being cut. I didn't think about that aspect when I moved the lines.

[ksantangelo23]

Well, yes, it will appear that your credit limit was lowered on the Cash Rewards account, but this would only be noticed upon a a very stringent manual review, in which case you can explain that you just shifted around credit limits.

Your FICO score will be unaffected by this CLD because, as takeshi74 mentioned, your total credit limit is unchanged.

[bribro]

Isn't per card utilization also a factor in FICO scoring? In that case, if you have two cards with CLs of $10k and $15k, and you have a $5k balance on the first card, it's in your best interest to shift more credit to the first one to lower that card's individual utilization.

[snowkitty]

---

@ksantangelo23 wrote:

Well, yes, it will appear that your credit limit was lowered on the Cash Rewards account, but this would only be noticed upon a a very stringent manual review, in which case you can explain that you just shifted around credit limits.

Your FICO score will be unaffected by this CLD because, as takeshi74 mentioned, your total credit limit is unchanged.

---

Ok, that makes sense. I know that everytime a new card shows up on my ex report, Amex and Chase both do an account review on the same day. I am assuming it's an automatic check to make sure that my credit is still in good standing. I just don't want anything looking off.

[snowkitty]

---

@bribro wrote:

Isn't per card utilization also a factor in FICO scoring? In that case, if you have two cards with CLs of $10k and $15k, and you have a $5k balance on the first card, it's in your best interest to shift more credit to the first one to lower that card's individual utilization.

---

I believe so. I have a balance transfer on one of my other cards (citi) and depending on the balance when reporting, my score will move up or down a few points. My boa card is one that I always pif so it should not be an issue.

[ksantangelo23]

---

@snowkitty wrote:

---

@bribro wrote:

Isn't per card utilization also a factor in FICO scoring? In that case, if you have two cards with CLs of $10k and $15k, and you have a $5k balance on the first card, it's in your best interest to shift more credit to the first one to lower that card's individual utilization.

---

I believe so. I have a balance transfer on one of my other cards (citi) and depending on the balance when reporting, my score will move up or down a few points. My boa card is one that I always pif so it should not be an issue.

Utlization, in terms of your overall FICO score, is calculated with the total limit of your avalible credit, across all accounts, not each account. However, induividual utilization may be a factor with each CCC if you put in for a CLI, are near your limit for long, etc

EDIT: Example:

BoA CashRewards: Limit 10k, 9k balance - 90% utilization

BoA Travel Rewards: Limit 10k, 1k balance - 10% utilization

FICO Utilization: Limit 20k, 10k balance - 50% utilization.

BoA may have a raised eyebrow for pushing on one of your limits, and you risk AA or a FR if at 90% for long, but your FICO score does not, well..., care. It sees 50%.

[FinStar]

---

@snowkitty wrote:

---

@bribro wrote:

Isn't per card utilization also a factor in FICO scoring? In that case, if you have two cards with CLs of $10k and $15k, and you have a $5k balance on the first card, it's in your best interest to shift more credit to the first one to lower that card's individual utilization.

---

I believe so. I have a balance transfer on one of my other cards (citi) and depending on the balance when reporting, my score will move up or down a few points. My boa card is one that I always pif so it should not be an issue.

---

OP, check your CRs.  It's likely that BOA also HP'd when moving or allocating CLs around.  This is very common and part of their SOP as they consider any account that receives the CL (or the donor card) as a CLI.

[snowkitty]

@Finstar Oh no, I will check that. Would they pull a 2nd hp on the same day? That would be bad but now that I think about it, they did ask me for financial info, etc. It never occurred to me that would be a hp. I'm beginning to feel like that whole card was a mistake. Thanks for the heads up.