Reallocating vs. Combining Credit Card Accounts
Guest: fafura
Post subject: Reallocating vs. Combining Credit Card Accounts
Posted: Wed Jan 17, 2007 7:33 pm
If one is aiming for HLs on new applications and has accounts:
3 CITI total limit 16k opened 5/05,11/05,5/06 respectively
2 BofA and 1 MBNA tl 22.4k 6/05,5/06,5/06 respectively
2 CHASE one 1.5k, second with 3k limit - I heard reallocating or combining with CHASE stimulates HARD inquiry 3/05,9/05
1 DISC 3k 5/06
Providian 1.5k and Cap1 $550 limits which are the oldest accts 11/04,1/04 respectively.
What is better option? Reallocating to highest possible limits on some cards and leaving others very low? For example ending with:
1 CITI of 15k and two others with $500 each
1 MBNA of 21k and two BofAs of $700 each
rest the same. Is it common that those low limits will be soon increased by the issuers to equal range of those high limits or will it be hard to get any increases?
Or combining is better option and closing the ones with low limits of $500 and $700?
Which method should allow for HIGHER LIMITS ON NEW APPLICATIONS?
I already used all the soft pulls I could to get highest possible limits on those cards recently and I don't want to stimulate HARDs on CLIs coz I heard it's better to save'em for NEW APPs. My history is 3 yrs old and I only consider Reallocating/combining from older to newer cards since they offer better deals. Fico 740.
Last edited by fafura on Wed Jan 17, 2007 7:59 pm; edited 5 times in total
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Guest: hdporter
Credit Expert (100+ Posts)
Posted: Wed Jan 17, 2007 7:42 pm
Reallocating is good if you want to maintain both accounts open. You may wish to do this to preserve credit history (I personally don't sweat closing an a/c with less than 2 yrs history, but then I have 2 20+ yr old a/c's). You may wish to keep both accounts open to provide greatest flexibility/opportunity for promo bt's.
Combining is good because it reduces the accounts with the creditor, leaving open greater likelihood that you won't bump up against a cap on number of a/c's, should you with to open a new account down the road. If you combine, you want to select the surviving a/c by weighing which a/c is the longer establsihed and which a/c has the stronger terms.
Our experience with Chase was that they didn't pull a hard when reallocating. I've seen other reports where they did.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: fafura
Posted: Wed Jan 17, 2007 8:15 pm
If I go the reallocation path, can I expect that those low limits will be soon increased by the issuers to equal the range of those high limits or will they probably stay in a low range limits?
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: Reallocating vs. Combining Credit Card Accounts
Posted: Wed Jan 17, 2007 7:33 pm
If one is aiming for HLs on new applications and has accounts:
3 CITI total limit 16k opened 5/05,11/05,5/06 respectively
2 BofA and 1 MBNA tl 22.4k 6/05,5/06,5/06 respectively
2 CHASE one 1.5k, second with 3k limit - I heard reallocating or combining with CHASE stimulates HARD inquiry 3/05,9/05
1 DISC 3k 5/06
Providian 1.5k and Cap1 $550 limits which are the oldest accts 11/04,1/04 respectively.
What is better option? Reallocating to highest possible limits on some cards and leaving others very low? For example ending with:
1 CITI of 15k and two others with $500 each
1 MBNA of 21k and two BofAs of $700 each
rest the same. Is it common that those low limits will be soon increased by the issuers to equal range of those high limits or will it be hard to get any increases?
Or combining is better option and closing the ones with low limits of $500 and $700?
Which method should allow for HIGHER LIMITS ON NEW APPLICATIONS?
I already used all the soft pulls I could to get highest possible limits on those cards recently and I don't want to stimulate HARDs on CLIs coz I heard it's better to save'em for NEW APPs. My history is 3 yrs old and I only consider Reallocating/combining from older to newer cards since they offer better deals. Fico 740.
Last edited by fafura on Wed Jan 17, 2007 7:59 pm; edited 5 times in total
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: hdporter
Credit Expert (100+ Posts)
Posted: Wed Jan 17, 2007 7:42 pm
Reallocating is good if you want to maintain both accounts open. You may wish to do this to preserve credit history (I personally don't sweat closing an a/c with less than 2 yrs history, but then I have 2 20+ yr old a/c's). You may wish to keep both accounts open to provide greatest flexibility/opportunity for promo bt's.
Combining is good because it reduces the accounts with the creditor, leaving open greater likelihood that you won't bump up against a cap on number of a/c's, should you with to open a new account down the road. If you combine, you want to select the surviving a/c by weighing which a/c is the longer establsihed and which a/c has the stronger terms.
Our experience with Chase was that they didn't pull a hard when reallocating. I've seen other reports where they did.
- Harry
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: fafura
Posted: Wed Jan 17, 2007 8:15 pm
If I go the reallocation path, can I expect that those low limits will be soon increased by the issuers to equal the range of those high limits or will they probably stay in a low range limits?
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 3:33 PM
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