transferring chase CLs

[Anonymous]

I've got a question about transferring limits... does it affect your fico in anyway?

I've got a $2,500 chase freedom, if I were to transfer $2k to my CSP.... would a $500 credit limit on the freedom impact my credit score or future applications? I ask this because I read that sometimes creditors match what your other credit limits are.

[Luscher]

No, credit score wise, you still have the same amount of credit. Future applications also should not be impacted by simply transferring some credit

[bch238]

Potentially.  There are two ways utilization affects FICO scoring:  (1) per card utilization, e.g., as utilization on any given card in your portfolio goes up, FICO may be adversely affected, and (2) overall or global utilization.  Transferring limits from one card to the other might only affect the first kind.  If you transfer limits away from a card carrying a balance, your utilization will go up for that card and may adversely affect your FICO.  Conversely, if you transfer limits to a card with a balance, your utilization for that card will go down and may give a boost to your FICO.  Because your aggregate limits remain unchanged, your global utilization also remains unchanged

[Ghoshida]

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@Anonymous wrote:

I've got a question about transferring limits... does it affect your fico in anyway?

I've got a $2,500 chase freedom, if I were to transfer $2k to my CSP.... would a $500 credit limit on the freedom impact my credit score or future applications? I ask this because I read that sometimes creditors match what your other credit limits are.

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Potentially, two things may happen here that you need to be careful about.

(a) Utilization on Freedom getting very high. I'd try not charging anything on the Freedom; or I'd be paying it down to zero.

(b) Computer approval systems reading a CLI and a CLD from the same bank. Upon manual recon / review, you can explain to the underwriter that you voluntarily reallocated limits; but the computer may see it as a CLD on Freedom.

Remember, banks are known to do CLI and CLD on two cards to the same person. Someone on Barclaycard Ring's blog posted about this: http://www.barclaycardring.com/t5/Barclaycard-Ring-Public-Blog/A-Case-Study-of-a-Credit-Line-Increase-and-Decrease-Part-II/ba-p/5840. So the computer may not be able to differentiate between this and credit limit reallocation.

Generally, this doesn't seem to affect people much; but if you were borderline, you might get auto-declined (at least, hypothetically). You can always recon and the UW will most likely understand.

[Anonymous]

I plan on keeping the freedom at a 0 balance if I were to switch the credit limits around.

Another question is if I were to have a maxed out credit card and a credit card showing a 0 balance.... would it be better to do a 0% apr balance transfer so that both would have a 50% utilization instead of 1 @ %100 and the other at 0% ?