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Better to reduce credit line on existing cards before applying for new cards?

Better to reduce credit line on existing cards before applying for new cards?

Old Sep 22, 19, 2:42 pm
  #1  
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Better to reduce credit line on existing cards before applying for new cards?

Goal: To maximize the usable credit lines on the business cards going forward.

Currently, have 3 personal and 1 business Chase card (all 3+ years old).

I want to mostly use business cards (rather than personal) for big business spend going forward and am about to apply for two new business cards.

The total credit limits on the personal cards are relatively high compared to current personal income.

Is it a better strategy to:
a) Leave the personal credit lines as they are and ask the reconsideration line to transfer them to the new business cards if declined for the new cards
or
b) Lower the personal credit lines before applying for the new business cards

Thanks for any insight or data points you may have.

Last edited by wanaflyforless; Sep 22, 19 at 5:50 pm
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Old Sep 22, 19, 3:35 pm
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The correct answer is (b).

(I'm relatively certain that Chase does not permit one to move credit limits from personal accounts to business accounts.)
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Old Sep 22, 19, 5:21 pm
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One way isn't really better than the other. They just require different work to get to the same endpoint.

That said, Chase has an total amount of credit that they will extend to you. If you would prefer the relative security of instant approval on your applications, lowering your overall credit limits with Chase is the better choice. Also, it is my understanding that Chase will only move credit from personal to business at open of the account; if they decide to extend you additional credit for your applications, you could end up with paltry limits based on their total exposure limits.
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Old Sep 22, 19, 6:31 pm
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Take what they give you, and later discuss the limits with Chase,

I once received a 2,000 limit, and later increased it

The best thing is have a business checking account,
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Old Sep 24, 19, 10:55 am
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Originally Posted by satman40 View Post
Take what they give you, and later discuss the limits with Chase,

I once received a 2,000 limit, and later increased it

The best thing is have a business checking account,
What if they give you nothing because your personal credit limits are already too high? As mentioned earlier, chase no longer allows you to reallocate credit limits between personal and business accounts.
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Old Sep 24, 19, 11:26 am
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If they gave you nothing you would not receive the credit card,

I have applied for 80 credit cards over the years, but can only speak of my experience
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Old Sep 24, 19, 2:57 pm
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Originally Posted by satman40 View Post
If they gave you nothing you would not receive the credit card,

I have applied for 80 credit cards over the years, but can only speak of my experience
Well xx, that was pretty much the point i was trying to make.
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Last edited by philemer; Sep 29, 19 at 8:00 pm Reason: inflammatory word removed
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Old Sep 26, 19, 6:46 pm
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Originally Posted by Critterlynn View Post
What if they give you nothing because your personal credit limits are already too high? As mentioned earlier, chase no longer allows you to reallocate credit limits between personal and business accounts.
You have to call in and ask them to move credit from another account.

As I said previously, they can only move credit from personal to business at the time that you are opening the account.
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Old Sep 27, 19, 6:48 am
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Originally Posted by sechs View Post
As I said previously, they can only move credit from personal to business at the time that you are opening the account.
Chase doesn't move CL between personal and business accounts at any time.
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Old Sep 29, 19, 4:34 pm
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I think it is much easier to move EXISTING credit, than getting approved for MORE credit. This of course all depends on how much you have and what your income will support.

I would not cancel in advance myself. I have had them move credit and just about any rep can do that. Giving you NEW credit takes approval.

And, what if they will not give you a new card for whatever reason - but you want to have those cards you just cancelled? Tough luck!
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Old Sep 30, 19, 10:21 am
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Originally Posted by NoStressHere View Post
I think it is much easier to move EXISTING credit, than getting approved for MORE credit. This of course all depends on how much you have and what your income will support.

I would not cancel in advance myself. I have had them move credit and just about any rep can do that. Giving you NEW credit takes approval.

And, what if they will not give you a new card for whatever reason - but you want to have those cards you just cancelled? Tough luck!
Who said anything about canceling? You're the first one to use the word "cancel" in this thread, which was about lowering (or moving) credit limits, not canceling.

As long as you lower the credit limit on an existing card to something which works for you, why would that be so bad in case you're not approved for a new card despite that?

As mentioned before, you cannot move credit from a personal card to a business card, so lowering the credit limit on personal cards before applying for business cards is one of only two options (the other option being doing nothing).

Lowering the credit is not the same as canceling. If you have $15k of credit limit on a card which you only use for relatively small purchases, what's the problem with lowering that to $10k or even $5k? As long as you'll never get above 30% of the (lowered) credit limit at statement time, you don't really need the extra credit limit (which you had before lowering it) that much, do you?
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Old Sep 30, 19, 12:13 pm
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Thank you for all your opinions/advice.

So we tried applying for a business card without changing existing lines. The application when pending. Called and the representative insisted they could not transfer credit from a personal card to the new business card. Don't know yet if the new business card was approved.

Will try a second business card soon after lowering some personal card lines.
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Old Sep 30, 19, 1:02 pm
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Originally Posted by sdsearch View Post
Who said anything about canceling? You're the first one to use the word "cancel" in this thread, which was about lowering (or moving) credit limits, not canceling.
...
You are right. Nobody said anything about canceling cards. They did talk about reducing credit which is similar to canceling SOME credit.

My theory (which is not proven) is that once credit goes away, you might not get it back.

And I do understand you can not move credit from personal to business. But - if you are the "guarantor" or owner of the business card - it still relates to your overall credit they are going to give you. So, in that case, maybe a reduction would help.
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Old Sep 30, 19, 2:56 pm
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Originally Posted by NoStressHere View Post
You are right. Nobody said anything about canceling cards. They did talk about reducing credit which is similar to canceling SOME credit.

My theory (which is not proven) is that once credit goes away, you might not get it back.

And I do understand you can not move credit from personal to business. But - if you are the "guarantor" or owner of the business card - it still relates to your overall credit they are going to give you. So, in that case, maybe a reduction would help.
Your theory has been disproven time and again by the numerous folks who reduce their credit limits prior to applying for a new card which grants them......more credit.
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Old Sep 30, 19, 10:04 pm
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Originally Posted by wanaflyforless View Post
Thank you for all your opinions/advice.

So we tried applying for a business card without changing existing lines. The application when pending. Called and the representative insisted they could not transfer credit from a personal card to the new business card. Don't know yet if the new business card was approved.

Will try a second business card soon after lowering some personal card lines.
Don't try too soon. Chase is not likely to approve you for two business cards too soon in a row. Per this post, general advice is to wait 2-3 months between such applications.

Last edited by sdsearch; Sep 30, 19 at 10:18 pm
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