If my credit card balance gets too high, will my APR be raised?
Guest: Brammy
Post subject: If my credit card balance gets too high, will my APR be raised?
Posted: Tue Jun 20, 2006 7:34 am
It is possible that they will ratejack you across the board. I had over 50% on only one card and was ratejacked for that card. I think they would probably watch for a few months to see if you brought it down. If you didn't all heck will probably break loose. Limits decreasing, interest rates going up,the whole nine yards.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: rmecseki
Posted: Tue Jun 20, 2006 1:57 pm
All my balances are from promotional low rate balance transfer offers. I deposited the BT checks into my checking account. Since the APR is fixed until the offer ends they cannot ratejack me. Yes, I am carrying the balance from month to month until the offer ends and then I gonna pay the whole thing back.
To be more precise my problem is the following. I received a 3.99% balance transfer offer from Bank of America that is very hard to resist. I have the possibility now to do a BT into my checking account but if I do it I will use up 75% of my total available credit limit.
{(Balance on Card1 + Balance on card2 + ... etc) / (CL on card1 + CL on card2 +... etc) = 0.75 }
I would like to do the above mentioned BT only if it is sure that no credit card company will decrease my card's credit limit or close my account.
What balance/credit limit ratio would trigger a credit limit decrease or account closing in your opinion?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: maddybeagle
Credit Expert (100+ Posts)
Posted: Tue Jun 20, 2006 2:08 pm
Quote:
What balance/credit limit ratio would trigger a credit limit decrease or account closing in your opinion?
asking for opinions, some folks dont go over 50% on any 1 card and I believe that lowers your risk. I think you need to figure out what you are comfortable with and have a backup plan if things go sour.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hesiden
Credit Expert (100+ Posts)
Posted: Tue Jun 20, 2006 2:13 pm
[quote="rmecseki"]
What balance/credit limit ratio would trigger a credit limit decrease or account closing in your opinion?[/quote]
69.9681%
Seriously, your question is unanswerable. Every company has different criteria. What is your credit history with each company? Do you pay more than miniumum? Utilization with each company's card? Do you have a banking relationship with them? How much funds on deposit? What is your salary compaired to your debt? Etc, Etc.
Generally speaking don't go over 50%.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: If my credit card balance gets too high, will my APR be raised?
Posted: Tue Jun 20, 2006 7:34 am
It is possible that they will ratejack you across the board. I had over 50% on only one card and was ratejacked for that card. I think they would probably watch for a few months to see if you brought it down. If you didn't all heck will probably break loose. Limits decreasing, interest rates going up,the whole nine yards.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: rmecseki
Posted: Tue Jun 20, 2006 1:57 pm
All my balances are from promotional low rate balance transfer offers. I deposited the BT checks into my checking account. Since the APR is fixed until the offer ends they cannot ratejack me. Yes, I am carrying the balance from month to month until the offer ends and then I gonna pay the whole thing back.
To be more precise my problem is the following. I received a 3.99% balance transfer offer from Bank of America that is very hard to resist. I have the possibility now to do a BT into my checking account but if I do it I will use up 75% of my total available credit limit.
{(Balance on Card1 + Balance on card2 + ... etc) / (CL on card1 + CL on card2 +... etc) = 0.75 }
I would like to do the above mentioned BT only if it is sure that no credit card company will decrease my card's credit limit or close my account.
What balance/credit limit ratio would trigger a credit limit decrease or account closing in your opinion?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: maddybeagle
Credit Expert (100+ Posts)
Posted: Tue Jun 20, 2006 2:08 pm
Quote:
What balance/credit limit ratio would trigger a credit limit decrease or account closing in your opinion?
asking for opinions, some folks dont go over 50% on any 1 card and I believe that lowers your risk. I think you need to figure out what you are comfortable with and have a backup plan if things go sour.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hesiden
Credit Expert (100+ Posts)
Posted: Tue Jun 20, 2006 2:13 pm
[quote="rmecseki"]
What balance/credit limit ratio would trigger a credit limit decrease or account closing in your opinion?[/quote]
69.9681%
Seriously, your question is unanswerable. Every company has different criteria. What is your credit history with each company? Do you pay more than miniumum? Utilization with each company's card? Do you have a banking relationship with them? How much funds on deposit? What is your salary compaired to your debt? Etc, Etc.
Generally speaking don't go over 50%.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 4:28 PM
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