Question
A couple of weeks ago, I contacted BofA to enquire about a possible balance transfer from an unutilized card. The rep. suggested that I consolidate mycards and move the credit line over to 1 of 2 other cards that I have of theirs as I would then be able to take advantage of a 0% offer. Wow!
I then thought I might be able to do the same with Chase with whom I have 5cards, 2 of which the Marriott and Continental cards carry horrendously high interest rates. So after paying down around $ 20K in cc debt on these Chase cards, I called Chase. After much transferring between departments, I am given the 3rd degree by some guy who informs me that he's cutting my credit lines by $10K and, no, they won't consolidate credit lines. So I agree to having the limit lowered to $500 on the Continental card as I don't collect OnePass miles and then today I called back to cancel the card.
According to conventional wisdom, this reduction of credit lines will negatively impact my credit ratijg, won't it? Besides denying me an emergency $10k float should I need it in the future.
Where did I go wrong?!?!
Answer
Where did I go wrong?!?!
Never talk to a person! Only work with computers!
Answer
A couple of weeks ago, I contacted BofA to enquire about a possible balance transfer from an unutilized card. The rep. suggested that I consolidate mycards and move the credit line over to 1 of 2 other cards that I have of theirs as I would then be able to take advantage of a 0% offer. Wow!
I then thought I might be able to do the same with Chase with whom I have 5cards, 2 of which the Marriott and Continental cards carry horrendously high interest rates. So after paying down around $ 20K in cc debt on these Chase cards, I called Chase. After much transferring between departments, I am given the 3rd degree by some guy who informs me that he's cutting my credit lines by $10K and, no, they won't consolidate credit lines. So I agree to having the limit lowered to $500 on the Continental card as I don't collect OnePass miles and then today I called back to cancel the card.
According to conventional wisdom, this reduction of credit lines will negatively impact my credit ratijg, won't it? Besides denying me an emergency $10k float should I need it in the future.
Where did I go wrong?!?!
...carrying high balances. When you carry high balances, card issuers perceive you as a risk. They tend to reduce your credit limits. Your call brought it to their attention.
Answer
It's also possible that during the BoA process they ran credit checks and made it appear as if you applied for/received more credit. This would have been a red flag to Chase who may have thought you had too much available credit overall.