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I have had a Wells Fargo Credit Card for about 3 years with a limit of $3100 and a chase bank credit card since January with a limit of $3000. Wells Fargo is charging me close to 13% and chase has its introductory offer of 0% till March. I have used about $2800 on my chase bank account credit card and about $1300 on my Wells Fargo card.

My situation is such that I am looking to invest a lot of money by December, so I want to run all my personal expenses on a credit card till the end of the year. I plan paying the whole balance of $6100 by March(Latest April, but highly unlikely). However, if I use Wells Fargo(The card which has most available limit), I will be paying 13% interest, which I really don't want to, as my investments won't fetch me a better return.

So, I was wondering if there was a way to switch my entire credit limit of $6100 to my chase bank card so I do not have to pay any interest. Also, would this effect my credit score or spoil my banking relation with Wells Fargo? Lastly, should I do this before my statement is issued or after?

Any help or advice would be greatly appreciated.:)

Thanks

  • You want to put your personal expenses on a card so you can use the $ to invest? Aka you're investing with money you don't have & trying to float it on a credit card (when you already have 4k in cc debt?)? Doesn't sound like a great idea to me. You can see if you have any balance transfer promotions running, but the easiest way to do this plan is simply open a new card (not that I'd recommend it) – VBCPP Sep 25 '14 at 1:22
  • Well, the thing is that I have a stable job and I save close to $3k monthly. So, I was thinking, put as much as I can on the card and take January, February and March( In case I need it), to only pay off the card. And the reason, I have a 4k debt, is because I put it down for a car, since it was 0%. Otherwise, I rarely need to ever use my card:/. – user19894 Sep 25 '14 at 1:27
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Bank A only care about the credit limit at Bank B when determining the maximum amount of credit they will grant you.

In theory you might be able to convince them that by cancelling the other card they should increase the limit on their card. Of course since you owe too much money to do a balance transfer before the cancelling of a card you will need them increase the limit first. They will have to decide if your income, credit usage history, credit core, and age of your account with them justifies the increase.

I don't think you have a good plan for using the increased debt, it is way to risky. But if you have enough income to save 3K a month you might be a good candidate for a higher credit limit.

  • Hello Mhoran, thanks for your answer. What you say here sounds absolutely correct. But would this spoil my relation with bank A? Also, since I have been a customer with bank B only for 9 months, what are the chances that they would increase my credit limit? And wouldn't this affect my credit score too as lenders see me as a person with big debts requesting a credit limit increase? – user19894 Sep 25 '14 at 3:23
  • You currently have two lenders and debt. You don't care about others lender at this time. Only your lenders can tell you if they will increase your limit. The decision is based on their own private algorithms. When you use terms like "spoil my relationship with bank A" you aren't looking at it the right way. You are an account number to them. Your (very risky ) plan only work if you game the credit card system. – mhoran_psprep Sep 25 '14 at 10:07

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