Any experiences with transferring balances to NEW credit card.

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
4 posts
ThomasAJ
 
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Joined: Thu Apr 01, 2010 2:38 am
Location: Brisbane

Any experiences with transferring balances to NEW credit card.

Postby ThomasAJ » Thu Apr 01, 2010 2:40 am

I am thinking about opening a new CC as they offer low interest for balances transferred and am trying to work out the most advantageous way of doing it.

I have about $25k in an existing credit card. (please no comments about the size of the $s etc)

So if I apply for a new low % CC and they offer say $10k limit and they transfer $10k to the new CC (in the application they want you to enter the amount to be transferred) what is the chance that my existing CC issuer might kick up a stink and reduce my limit.

Their thinking might be "he has exposed himself to higher overall credit so we better reduce our exposure to him".

I was wondering what experiences people had in this area.

Thanks


ThomasAJ
 
Posts: 2
Joined: Thu Apr 01, 2010 2:38 am
Location: Brisbane

Postby ThomasAJ » Tue Apr 06, 2010 4:59 pm

My post has been up for some days now - looks like this is a very inactive Forum.

OR

there is something wrong with the post maybe?

DoingHomework
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Location: Arizona

Postby DoingHomework » Wed Apr 07, 2010 8:40 am

This is going to depend on your utilization. If you have $25k balance but your limit is 100k then they will not care that you move 10k away. But if you utilization is high then it is unlikely you will be approved for a new 10k card and if you are i could trigger a review by the old card issuer that lowers your limit or raises your rate.

cpaynter
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Location: chicago area

Postby cpaynter » Fri Apr 09, 2010 6:42 am

ThomasAJ wrote:I am thinking about opening a new CC as they offer low interest for balances transferred and am trying to work out the most advantageous way of doing it.

I have about $25k in an existing credit card. (please no comments about the size of the $s etc)

So if I apply for a new low % CC and they offer say $10k limit and they transfer $10k to the new CC (in the application they want you to enter the amount to be transferred) what is the chance that my existing CC issuer might kick up a stink and reduce my limit.

Their thinking might be "he has exposed himself to higher overall credit so we better reduce our exposure to him".

I was wondering what experiences people had in this area.

Thanks


I've done this several times; gotten a new card then immediately maxed it out by transferring balances from another card. I've never had any adverse action from other issuers. In fact, if you keep the old card open, it should only help your overall score, as your total available credit has now increased by that much, which improves your ratio.

My experience is that overall credit score is what issuers look at in making decisions on credit limits. Of course, creditors can certainly dig deeper in your credit report and scrutinize individual accounts. But I think that's much more likely to happen when applying for credit, especially for a mortgage or car loan. For that reason, my general rule is to have only one credit card at >50% utilization at any given time. But I feel comfortable with one card at 100%, if it's saving me money in interest.

Chris.



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