Update 3/22/22: This feature is now live, according to yourfriendly-jax. After applying, the application might redirect to a page that allows moving around credit limits in order to get approved for the new card.
Original Post 8/18/21:
Chase is set to unveil a new feature when applying for a credit card. Customers that meet a certain criteria will be presented the option to reallocate existing credit lines when applying for a new credit card. Sometimes this is necessary to get approved for the new card as Chase has extended the maximum credit limit they feel comfortable with. Previously this had to be done via phone when calling the reconsideration department after a card was denied, this new system will be online and show as an option after applying.
Hat tip to EosHuffer
Applied for a new card Sunday night, got a “we need time to review” message. Called the next day and it was already approved and I noticed it was in my account. Got a letter today and chase automatically moved some existing credit line from my other three accounts to this account in order to approve it. I was never asked if I wanted to, but it was nice they did it without me having to call.
Is this only when applying for new cards? (wouldn’t be able to just log in and change allocations now?)
Anyone got screenshots of this interface?
Works for business cards too?
I apply for the CIP today, I didn’t get a page that allows moving around credit limits in order to get approved for the new card.
It just said “Thank you for your request. We need to review your request a little longer. We will let you know of our decision as soon as possible.” after I submit my application.
Same here. I applied CIC today but didn’t see the page for moving credit. It just said “Thank you for your request. We need to review your request a little longer. We will let you know of our decision as soon as possible.” after I submit my application.
Citibank, take notes….
Citibank has left chat
Will it show this option every time you apply for a card or only if Chase thinks you’ll need to move credit around?
Also – does this apply to business cards?
My thoughts are it works the way it did if you were to call recon, and they would approve you by moving credit around. So not every application, but only if that’s the only think preventing an auto-approval.
I applied and was instantly accepted on 3/13 and was not redirected to reallocate credit. Not the most recent DP, but better than nothing
Also, when you close an account, asking them to move the credit line to other open accounts, so if you need to apply for a new card in the future, you have a big enough limit to move around with.
Paid my son’s Stanford tuition with credit cards. No surcharge!
We used to pay $3500 a month for our son at UCSD, only option was checking. Now daughter is ready to go, would not mind if she goes to public college. Ivy would be double and points reward would be less than $150..
Imagine being trash enough to do that
That was an unwarranted attack. What exactly is trash here?
Sometimes they approve you and move around your existing credit lines themselves without consulting you, so it wasn’t always a denial and reconsideration call that led to this in the past.
I can second this. I don’t think it was for reconsideration, more so allocation, if that’s a thing. He just gave my highest credit line to the new card and set the old highest line to the average where the other cards where at (I default everything to 5k if I don’t use it).
+1.. and not sometimes.
Since both me and P2 have quite a few of the Chase cards biz and personal and probably reached out the combined limit Chase is comfortable with, recently every single application (and we had 5 or 6 over last 12 months) resulted in going pending and then approved with credit reallocation.
Proactively lower credit limit to low numbers (but not too low, otherwise you have nothing to move if needed) and save all the trouble.
Well if you get denied for other reasons then you’ve just lost your credit limit for nothing, since they won’t raise it without a hard inquiry, and you’ll have already gotten another separate hard inquiry for your denial. And even if approved, you might not get the same amount of credit back.
You are correct AM about this but so is Vic. I have always been proactive in reducing credit lines when I am about to apply for credit. For example, Chase will come up with a total credit limit that they will extend to you based on your creditworthiness and income across all cards. However, you will not know what this number is until you get the dreaded email saying that they won’t approve you. If you take the necessary steps to reduce your credit limit on one card, or across several cards, then you are more likely to see your next credit card application approved instead of denied. This method works well and it saves me a phone call to reconsideration.
Meanwhile none of the people in my household have ever bothered to lower credit lines and never had any problems being approved. With Chase, only 1 of us hit the bank-wide total exposure limit when applying for a card, but it was still an approval without any denial or talks with reconsideration. It wasn’t an instant approval, got the pending message, and a few days later an approval letter that explained that almost $20K was moved from an old card with a huge credit limit. So our method works well too, in fact none of us has ever been denied for any credit card ever. There are lot of methods that work, but in general if you have a good credit profile and the banks want you as a customer then they will do what they need to do to approve you and you don’t need to play games or overcomplicate things for yourself. In the end though, you can never be sure what the bank will do, but you can be sure that your limit is gone if you lower it…
You can generally get a feeling of how much total limit Chase will extend you though. It’s typically around half your income but it depends on a lot of things like your history as well.
I lowered my CL on Amazon card, around 30k for no reason, due to previous CSP downgrade and merge.
On one occasion last year I decided to close a biz card with a low limit (already re-allocated the most of it in the past) in hopes to achieve instant approval, but did not happen, and instead they moved credit anyway to approve, so the limit on the closed card was just lost. Not a big deal, but probably it is not even going to work unless you lower it big time.
Also, keep in mind, that some other banks like BofA will not make a credit instantly available to you if you happen to close the card recently, and it is highly advised to move the credit before closing cards with BofA. Not sure if Chase has any other similar algorithms.
To sum up – from my rather extensive experience over the last 12-15 months I would not recommend lowering your credit… It does not prove to guarantee the instant approval, and does not negatively affect your overall chances of being approved.
Especially now when the new re-allocation feature is available, lowering down your credit makes even less sense.
Good luck.