Credit Card Limit on Balance Transfers

Guest: AJ
Post subject: Credit Card Limit on Balance Transfers
Posted: Sat Jun 17, 2006 5:49 am

Why do banks offer balance transfers and claim that you can use up to your available limit ( of course leaving a little left on the card ) then they turn around and say that you are using too much of the limit they gave you? For example, if you have 9k, how close to the 9k should you get?

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Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Credit Card Limit on Balance Transfers
Posted: Sat Jun 17, 2006 7:08 am

Quote:
"AJ"
Why do banks offer balance transfers and claim that you can use up to your available limit ( of course leaving a little left on the card ) then they turn around and say that you are using too much of the limit they gave you? For example, if you have 9k, how close to the 9k should you get?

LEAVE $100--$500 UNUSED

Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Credit Card Limit on Balance Transfers
Posted: Sat Jun 17, 2006 7:56 am

I'd keep it under $8,000 at least--and preferably under $4400.

Banks seem to get nervous if you use more than 90% of your available credit. Banks are very happy if you use less than 50% of your available credit.

I understand some people do what mouse suggests and go for years without any adverse effects. Others, though, say that they do have adverse effects when over 90%. Still others recommend staying under 50% as a strategy--that keeps your credit scores high and encourages banks to offer you intro offers at 0% and more BT offers at good rates.

I know it's hard to keep below 50% when you have free money available. I have trouble doing that myself. What I do is stay under 90% at all times, and if the limit is small (for me, small is under $10K) stay under 50%. I have a few cards with limits of 40K+, so when I get an offer on those that I want to use I go for the 89% level!
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Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"

Guest: bullet875
Credit Expert (100+ Posts)
Post subject: Credit Card Limit on Balance Transfers
Posted: Sat Jun 17, 2006 10:42 am

I spoke with a Chase underwriter yesterday and he suggests that you stay under 50%. Anything more than that ends to make the card companies a little nervous unless you have a lo9ng credit history.