Transferring Credit Line

[jazmynju]

Hello everyone!! I don't have prior experience with moving credit lines around within the same credit card company but after reading this board on moving credit lines around and analyzing my cards, I decided to transfer my credit line from my Chase Marriot Bonvoy card over to my Chase Sapphire Preferred card a few weeks ago and left the required $500 on the Bonvoy card to keep it open. Today it reported to the credit bureau that my credit line decreased on the Bonvoy card and I lost 2-3 points on my credit scores. The CSP card hasn't been reported yet to the credit bureaus - I just opened that card a few weeks ago. I didn't realize when you move a credit line to another card, it will negatively  impact your score. I did this because I don't use my Bonvoy card as much as I would my CSP card. I was going to do this with my three BofA credit cards as well. I just got my Cash Rewards card down to $0, and waiting for my Tavels Rewards card to be $0 then transfer both of those credit limits to my Premium Rewards card, leaving the required $500 on both cards to keep it open. But now I'm honestly a little afraid to do it because if I do, I'm afraid it will negatively impact my score again, even though it's just a few points. 

[SoCalGardener]

I hear you!

I did that recently with two of my Amex cards. After upgrading my Blue Cash Everyday to Blue Cash Preferred, I basically stopped using my Everyday card. So I transferred all I was allowed from it to the BCP. The thing is, I *knew* it would have a minor, negative effect on my scores--but I didn't care. It's so trivial, it really just doesn't bother me!

What does bother me, well, just kind of annoys me, is the alerts I got from all the various sites I use (Credit Karma, Experian, etc.), with the dire news that one of my credit limits had decreased.   Along with that awful news, they also provided helpful tips on keeping my head up and working toward improving my scores.

Anyway, I don't think there's anything to worry about. If you want to shuffle your limits around, go ahead and do it. The very minor ding that results will rebound quickly; at least it did for me.

[jazmynju]

@SoCalGardener haha I think that's what annoyed me too about the tips and things to keep my credit up!! it's just a few points and you're right, i'll rebound quickly so I think i'm just going to do it. What's your advice: Should I transfer the credit limit from the one car that is at a $0 balance over to my Premium Rewards card now? Or should I wait til both of those cards are at a $0 balance and transfer both credit lines over at the same time? thank you!!

[cashorcharge]

I have done this before with a score blip.  I think the prime factor is your ratios at the end of the day.  Debt and balance to overall limits is likely in "flux" if one account statemented before another so it would look like you lost credit but when the recipient card statements with the new CL, the score would shift back.  Assuming your debt is the same as it was before the shift, you may be seeing the score drop now because your UTIL % has gone up...because of the lack of available credit....but that would rebound when the other card statements.  

One thing that may be helpful to you is requesting to have the statement dates match if you're concerned if you do this again in the future. Depending on your finances and if its easier, aligning both accounts to the same statement date would negate this issue.  

[SoCalGardener]

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@jazmynju wrote:

@SoCalGardener haha I think that's what annoyed me too about the tips and things to keep my credit up!! it's just a few points and you're right, i'll rebound quickly so I think i'm just going to do it. What's your advice: Should I transfer the credit limit from the one car that is at a $0 balance over to my Premium Rewards card now? Or should I wait til both of those cards are at a $0 balance and transfer both credit lines over at the same time? thank you!!

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I don't have the specific cards you're referring to, so I'm not aware of any quirks they may or may not have. Just in general, I don't think it really matters whether the cards have zero balances--I mean, obviously if one has a $3,000 balance and you want to lower its limit to $500, that's a problem! But barring that kind of scenario, I don't think it matters.

Others with more experience doing this can provide more useful answers! The transfer I did with those two Amex cards was the first time I'd ever done that.

[jazmynju]

@cashorcharge thank you for the advice!!!