Consolidate Credit Card Credit Limits
I called Chase last night to consolidate credit lines on some cards that I no longer use so I can take advantage of 0% APR offer from the Chase Freedom card, though the offer is only good till the middle of November (I made a mistake about the length of the introductory period in my previous post when I said it was 12-month).
The Freedom card currently has a $11,000 credit limit. To make the balance transfer more profitable for four months (from now till it expires in November), I need a much larger amount. So I decided to move credit lines from other three Chase cards (Flexible card and Sony card) to the Freedom card without closing them. In this way, I get the credit line I want and still keep the credit history of the old cards.
The consolidation process went smoothly for the first two cards, all but $500 on each card was moved to the Freedom card. When the CSR was trying to do the same on the Sony card, she told me she wasn’t allowed to make the move and instructed me to call the lending and loan department during the day time. So I called again this morning and asked why last night’s attempt failed. The explanation is since the credit limit on the Freedom card will go over $50,000 if I add the credit line of the Sony card to it, I will need to get a special approval from the lending and loan department. To save myself some time, I chose to only go to $50,000 and the CSR was able to help me complete the consolidation.
So how much I can profit from this huge transfer? The total amount I’d like to borrow will be $49,500 and and half of the money will go to my IGoBanking account (5.30% APY) and the other half will be deposited into FNBO Direct (6.00% APY till September 18 and 5.24% afterwards). Since the minimum monthly payment for a balance of this size will be around $600, I will have about $47,000 in my bank account throughout the 4-month period. After the $75 on-time balance transfer fee, I could pocket about $750 worth of interests.
Worth the effort? I think so!
After the balance transfer ends, I will have to redistribute the credit line as having a card with $50,000 limit in my pocket all the time (I want to use the Freedom card for the 5% rebate on gas and grocery purchases) won’t make me feel very easy .
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