My problem with Balance Transfers

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My problem with Balance Transfers

Postby Glasgow » Mon Apr 28, 2008 10:40 pm

This is what I hate. Whenever you apply for a new card the credit limit is always low, especially if it's a bank/financial institution you've never had a relationship with.

I just opened up a card and low and behold the credit limit they gave me was just $4100. I've never had a late payment in my life and always have kept balances below 30% of my credit limit. $4100 is lower than any of my other cards and a couple of my cards have CL's of $13,100 and $26,500. As you can imagine I was pretty pissed about getting a CL of only $4100. :mad: I called them up today and canceled the balance transfer amount because it would have been more than 50% of that small credit limit. That would actually hurt my credit and not be worth the 0% especially when it was transferred from a card with an 8% normal APR.

Does anyone know any way around these things? I'm not carrying much debt and I actually could pay it off right now if I liquidated some investments. The thing is I don't want to. I'd rather transfer it to a 0% APR card with an intro rate or transfer it to a card that has a very low normal interest rate of 6 or 7%. I have good enough credit for it but you're always stuck with that low CL when you open up a new card. I've seen this on my family's accounts too when they open cards. They always give you a crappy limit to start off with.

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Postby 1bootcamp » Tue Apr 29, 2008 11:22 pm

Yeah I've had the same thing happen. It's going to take you some time, but this is what I do:

(1) Have a card or two from several major issuers
(2) Get their credit limits raised as fast as you can
(3) When it comes time to do a balance transfer, take advantage of the offers on the cards you have. That way you probably already have their credit limits built up.

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Postby Mogul of Pineapples » Tue Jun 03, 2008 6:09 pm

That's why it's best to split your balances up between cards. Yeah I know it's a headache because you can forget, but if you are just going to pay the minimum each month just set your online banking to automatically pay that amount on each card. That way you won't forget and won't have to worry about paying multiple card bills each month.

But do the math since your paying balance transfer fees usually of 3% or 4%. It won't make sense if you have to pay those amounts too often. You may be better off carrying it just on one card that has a low-looooow rate.
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Postby magyar1045 » Wed Jun 04, 2008 8:19 am

I think the thing behind low starting limits is that cc outfits see your credit reports, see all those other debts you are carrying, and are afraid that sooner or later you will burn them by filing bankruptcy

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Postby fffresh » Wed Jun 04, 2008 11:48 am

If you have more than one card with an issuer most of them will let you shift your credit limit from one card to another. That's one way that might work. Open up a card from someone you're already good with and then after you get it ask to shift some of your avail credit from your other card with them, to the new card. :cool:

That way you get the promo rates on the new card you open but *hopefully* with a higher CL

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