Balance Transfer

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CarefulBuilder14
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Re: Balance Transfer

Postby CarefulBuilder14 » Mon Oct 05, 2015 7:52 pm

I'm curious to see if there will be any balance chasing from Chase as the balances go to Citi.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when


gregshelley@scrtc.com
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Re: Balance Transfer

Postby gregshelley@scrtc.com » Mon Oct 05, 2015 8:28 pm

CarefulBuilder14 wrote:I'm curious to see if there will be any balance chasing from Chase as the balances go to Citi.


To new to this all...what is balance chasing?
Discover it $3k
BOA CR Visa Sig. $18K
Chase Freedom Visa $2K
Chase MRP Visa Sig. $5K
Cap 1 Vent Visa Sig. $13K
Citi HH Visa Sig. $8.5K
AMEX Plat NPSL
AMEX BCP $20K
AMEX Gold Delta SM $8K
BC AR + WEMC $3.5K
Cap 1 Spark Busin Visa $2K
Chase Ink Cash Busin Visa Sig. $5K

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CarefulBuilder14
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Re: Balance Transfer

Postby CarefulBuilder14 » Mon Oct 05, 2015 8:46 pm

gregshelley@scrtc.com wrote:
CarefulBuilder14 wrote:I'm curious to see if there will be any balance chasing from Chase as the balances go to Citi.


To new to this all...what is balance chasing?

When your wife owed $18k on a card with a $22k limit, Chase may have been very uneasy about that. Chase may have wanted to reduce the limit, but feared that if they reduced the CL, she would either get annoyed with Chase or have some other financial trouble and default and create a bigger mess.

Assuming the second BT goes through, she will only owe Chase $6k, so she will be lower-risk for Chase than when she was at $18k. Either a Chase employee or computer program may conclude that it would be a bad risk if she ever owed them more than $10k in the future, so Chase could possibly cut that $22k CL down to $10k or $14k or something like that. Balance chasing is when a lender reduces a CL quickly in response to a balance on that same account being reduced. It's like a lender saying. "Although you've paid us back, we don't want to take that kind of risk on you again anytime soon."

Although Chase makes a lot of money charging interest on $18k of debt, it's also very high-risk for them.

It's not guaranteed, and I don't know the odds of it. It's just that Chase, anecdotally, is an issuer that seems to do it more than others.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

Kevin86475391
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Re: Balance Transfer

Postby Kevin86475391 » Mon Oct 05, 2015 8:57 pm

It certainly is a potential threat, but my hunch is that this won't happen and she'll be okay. If I remember correctly from another thread you said your wife had credit scores in the high 700s right, like 770-790 or something? I suspect that's quite high enough for Chase to consider her a low risk of default and not balance chase.

I'd personally be a little bit more concerned about Citi doing that as her balances on the new cards are paid off if they're paid off very slowly and gradually (while you guys focus on paying off the interest-charging Freedom), since that would mean those two cards would be sitting almost maxed out for a long time with only minimum payments going toward them - plus they're newer accounts and thus don't have an established history of timely payments like the Freedom probably did.

But I'm not saying that'll happen either - or that Chase definitely won't balance chase. You definitely never know with lenders and it's very much a YMMV ("your millage may vary") type situation. I think a major benefit she has going for her is her high credit scores and long positive history.

gregshelley@scrtc.com
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Re: Balance Transfer

Postby gregshelley@scrtc.com » Mon Oct 05, 2015 10:06 pm

Her scores today on Credit Karma were Trans Union 786 and Equifax 788. Had to do something about the interest though.
Discover it $3k
BOA CR Visa Sig. $18K
Chase Freedom Visa $2K
Chase MRP Visa Sig. $5K
Cap 1 Vent Visa Sig. $13K
Citi HH Visa Sig. $8.5K
AMEX Plat NPSL
AMEX BCP $20K
AMEX Gold Delta SM $8K
BC AR + WEMC $3.5K
Cap 1 Spark Busin Visa $2K
Chase Ink Cash Busin Visa Sig. $5K

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CarefulBuilder14
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Re: Balance Transfer

Postby CarefulBuilder14 » Mon Oct 05, 2015 11:12 pm

Having a long history of 376 timely payments says a lot about a borrower's sense of responsibility and organization. It doesn't really say a lot about the current state of a person's finances, though. The problem here is clearly financial strain, and not a lack of organization.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

Vermonster
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Re: Balance Transfer

Postby Vermonster » Tue Oct 06, 2015 9:32 am

Amex has been known to balance chase customers with 30+ years of good payment history. It certainly isn't out of the question. But it tends to happen more when you ask for a large credit limit that is over what the bank would normally give. They might give it to you because you are low risk at the time and they want to see how you handle it. As you "abuse" your limit they will increase your risk. No one, under any circumstance, can carry 95% util without a bank increasing their risk assessment of you. Increase in risk, means decrease in credit limit.

It's like telling a teenager they can drive your car, then they get pulled over for speeding. Ticket, or not, you're going to think twice about letting them drive your car.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

gregshelley@scrtc.com
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Re: Balance Transfer

Postby gregshelley@scrtc.com » Sun Oct 11, 2015 8:41 pm

CarefulBuilder14 wrote:I'm curious to see if there will be any balance chasing from Chase as the balances go to Citi.


Both transfers have went through, so far, no Balance chasing from Chase or Citi.
Discover it $3k
BOA CR Visa Sig. $18K
Chase Freedom Visa $2K
Chase MRP Visa Sig. $5K
Cap 1 Vent Visa Sig. $13K
Citi HH Visa Sig. $8.5K
AMEX Plat NPSL
AMEX BCP $20K
AMEX Gold Delta SM $8K
BC AR + WEMC $3.5K
Cap 1 Spark Busin Visa $2K
Chase Ink Cash Busin Visa Sig. $5K



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