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.