Whispers from a Credit Analyst

[Anonymous]

Hi,

I got off the phone with a Bank of America Credit Analyst today who really put my mind at ease.

My initial call was to see if BoA would increase my limit on the Better Balance Rewards card which I recently applied for and swap some of the limit to the Travel Rewards card.  My analyst told me that both acts required a hard pull.  Bummer.

While I had her on the line, I told her I was concerned that I have too much available credit and that I'm worried that this might cause BoA to take a closer look into my account.  She told me that BoA doesn't care about the overall credit available, they are more concerned with your debt/income ratio.  

I thought I'd share this little snippet to put your mind at ease for those of you with large amounts of available credit and a relatively small income.

On a side note, has anyone had any success with a initial line increase through recon without a hard pull?

[Creditaddict]

I think very few banks start CLD because you have to much available credit... but opening a bunch of new accounts to get to all that new credit might be an issue with some but mostly just increasing the debt will get you watched!

I think recon usually will get another hp similar to chase on a different report.

[Anonymous]

Thanks for sharing !

[Anonymous]

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@Creditaddict wrote:

I think very few banks start CLD because you have to much available credit... but opening a bunch of new accounts to get to all that new credit might be an issue with some but mostly just increasing the debt will get you watched!

I think recon usually will get another hp similar to chase on a different report.

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I don't mind being watched, I've got nothing to hide!  I just don't want my banks preemptively closing my accounts.  Thanks for sharing your insight. 

[gdale6]

I have heard something like this before from my local CU, they dont care how much available credit one has, they base their loan decisions on what one actually IS using.

[Anonymous]

Ok, How does that explain "Pyramiding Debt" ?

[Creditaddict]

But isn't issues with pyramiding debt being declined not having CLD?

[14Fiesta]

I thought pyramiding debt referred to having a balance out there on cards but not actually ever paying it down, just BTing it from card to card so it "appears" like you PIF, while debt is still piling up.

[wacdenney]

I have had credit unions deny me due to "too much available credit" (NASA), but never a normal big bank.

[Ysettle4]

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@14Fiesta wrote:

I thought pyramiding debt referred to having a balance out there on cards but not actually ever paying it down, just BTing it from card to card so it "appears" like you PIF, while debt is still piling up.

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That's PenFed's definition of it. Not sure of other lenders.