I don't understand this, but it seems as if people use BT's to increase their actual stated credit limit. How does this work?
I think it depends on the offer. I just did one with Amex where they would increase your CL (dollar for dollar by up to $10,000) if you did a balance transfer (may be a good idea to transfer more than the actual balances on other cards just to get the CL increase). Quid pro quo is that the BT rate is not all that special but it's a good way to get a decent CL increase!
You only BT over your limit if you have received an offer specifically allowing you to do so. Chase also sometimes offers to increase your credit line if you will BT. DemPooches
Re: Do Balance Transfer's Increase You call the the number on the back of your credit card and ask sweetly: i'd like to know if there are any balance transfer offers on this card? If they say yes - ask what's the offer. Let's say they tell you - we offer 4.75% for the life of the balance with no balance transfer fees (be sure to ask if there are any bt fees for the transaction - if there are - you might reconsider). You say - that's a good offer - but i have one more question. I really hate to get even close to 50% utilization of my card - so i was wondering - would you be willing to up my credit line for the same amount of the balance transfer? (in other words - you have a 6K limit on the card - you want to transfer 2K - you're asking if they will give you an addt 2K in credit for the bt - making the cl 8K). Be sure to ask if it's possible WITHOUT an inquiry from a CRA (you don't want inquiries. Inquiries are BAAAAAAAAAAAAAAD). GOOD LUCK!
Re: Do Balance Transfer's Increase Thank you for the great advice. I am very grateful for all your help. Because of your generosity, my FICO has increased 60 points in one month.
