The second reason is much more applicable to points enthusiasts. That way, expenses/transactions can be kept separate, achieving the desired objective. The solution would be to reallocate credit from a different card to the credit card in question. In doing so, they need to spend more on a given credit card but don’t have the initial credit limit to do so. Instead, they’re looking to maintain separate expenses, likely due to accounting reasons. The first situation is most applicable to someone who isn’t seeking rewards. To get approved for a card when a bank has extended you the maximum credit they are comfortable with.To continue accessing credit after closing a card.To be able to spend more on a specific card.Reallocating credit limits can be done for many reasons, but these are the most common: Reallocating credit limits are performed to enable you to spend more on a given credit card without maxing out the credit limit by moving available credit from a different card to the preferred card. Reallocating credit limits has nothing to do with your outstanding balance it affects the total credit limit you have access to.īottom Line: Balance transfers are performed to move debt you’ve already accrued from 1 account to another. A balance transfer is a request to move existing debt from 1 creditor or credit account to another.īalance transfers are performed on existing purchases that you’ve already made. Reallocating Credit Limits Is Not the Same as Balance Transfersīalance transfers are not the same as reallocating credit limits. This is in stark contrast to credit limit increases and decreases. It’s important to note this because you’re not getting access to more or less credit when reallocating credit limits. Reallocating credit limits, also known as shifting credit limits, is the process of moving credit around different cards from the same issuer without changing the total amount of credit you have access to. What Does Reallocating Credit Limits Mean? This is a very common dilemma in the world of credit cards and personal finance, so this guide will be completely dedicated to shedding light on the step-by-step process of how to reallocate credit limits, also known as shifting credit limits. If, let’s say, you were a big advertising spender and were approved for an Ink Business Preferred ® Credit Card with a $5,000 credit limit and were also approved for an Ink Business Cash ® Credit Card with a $30,000 credit limit, you’re probably trying to figure out how to move as much credit to the first card as possible to take advantage of the 3x earnings. Card issuers’ algorithms for determining risk are extremely complicated, and they’re relegated completely to software most of the time. Sometimes it can feel like the credit limit you’re given when you’re approved for a credit card is arbitrary.
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