Approved for low credit limit

[dbell525]

This question is not specific to reward cards, but there isn't a generic category. I am aggressively trying to pay down $60K worth of credit card debt(I'm paying $2K/month). We have four accounts and all are held with Bank of America due to them buying MBNA and a fallout I had with Chase(they jacked up my interest rate based on other credit info, so I transferred the balance). Having all of my accounts with one creditor makes me nervous, because they could do the same thing and I would be screwed. To that end, I would like to open accounts with other stable creditors and distribute the accounts better while hopefully being able to take advantage of low intro rates, etc. My Experian credit score is 780. I have $120K combined income with my wife. We no longer charge anything. My debt ratio is 50% balance/limits.

Now the question: I applied for Amex Blue cash and tagged on a balance transfer of one account for an amount of $8900. I was approved for the card with a credit limit of only $2000 and declined for the balance transfer. How is the credit limit determined? Is there anything I can do to with this account or other creditors to work toward my goal of getting lower interest rates while diversifying with creditors?

[AMJ21]

With your CS you're in the game for many offers. Look at Advanta and Citi who many times have BT offers. As for BoA, I believe they DO NOT practice universal default like Chase, so you may be safe.

With regards to Amex, log on and ask for LUV. If they give it to you good, if not; good also. Anyway you look at it it's helping your UT. In addition, it doesn't cost you anything since it has no AF. Plus, you already took the hit for the Hard.

With that kind of debt you may also want to evaluate converting this unsecured debt to secured. If you get a personal loan, HELOC, etc. you'll structure it so you'll see the light at the end of the tunel. You could theorectically structure for 60 months and pay much less than $2K a month.

IMHO whatever you do, do it now while you have the scores and options available to you. Good luck.

[dbell525]

Thanks for the reply. I'll find out what LUV means and look into it. As far as HELOC, I would need that much equity to get the loan, correct? I don't have nearly that much, so I never considered that an option. While it is a little painful, I would just as soon pay it off as quickly as possible. With $2K/month, I can still get a little into savings.

[AMJ21]

Quote:

Originally Posted by dbell525

I'll find out what LUV means and look into it.

Requesting a CLI. You do it online.

Quote:

Originally Posted by dbell525

As far as HELOC, I would need that much equity to get the loan, correct?

Unfortunately, YES.

[dbell525]

Got it. So right now the plan is to try to find one or two good balance transfer offers with non-BofA companies so I can can shuffle the balances around under intro offers and pay heavily on the one with the highest interest rate, while paying minimums on the other three. Any advice on who might give me 10K at <6% even if only for 6 months or so?

[AMJ21]

Many options. Citi, Amex, Advanta, Chase.

Remember, you can have multiple Amex products. Also bear in mind that the offer you see is NOT neccesarily what you get. Most offers nowadays say 12 months. Some even 15. Read the disclaimer. The actual duration you will get is determined after you apply and they review your CS. You can apply for a 15 month offer and be given 3 months. With your scores you shouldn't have any problems.

If you apply and get approved but don't receive the CL you need, you can always call or go online.