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The Chase / Barclays Dilema


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Barclays is soon to acquire the AARP portfolio from Chase and this presents a dilema for me that I hope others can give input on.

 

With Chase I currently have about $140k, $50k of which is on their AARP card. Like any good credit ho, up is the only way to go so I ask Chase every 6 months to increase my limits. And every time Chase rather politely tells me to FOAD. "We'd love to increase your limits -- andthankyouverymuchforyourservice -- but perhaps your current limits are sufficient for now given your usage."

 

With Barclays I only have $50k. They give me the exact same CLI song and dance that Chase gives me every 6 months.

 

With Barclays set to acquire my Chase AARP card in the spring, I'm trying to determine the best course of action. What would my mentor and the CB ultimate credit ho, @Hegemony, do?

 

One option is to ask Chase to relocate my entire AARP limit over my FU or my Ink and close the AARP. I think they require you to keep $500 on the closed card so I'd lose that. I don't like to lose anything no matter how small it is.

 

Another option is to move all of my AARP limit except for maybe $5,000 to another of my Chase cards and that will ultimately move over to Barclays. Who knows if Barclays won't have a decent rewards structure on their AARP card.

 

The third option I see is to leave my Chase AARP limit intact and let the whole amount move over to Barclays. The advantage I see is that maybe then I can get Chase to give me CLIs on my other cards and this increase my overall limits. The downside, though, is that we know Chase is cheap with CLIs and that doing a new app & combo is the most effective way to get a CLI. I don't see that ever happening because it will be a cold day in hell when I'll be able to get through the 5/24.

 

Yet another disadvantage, possibly, with option #3 is that when Barclays sees me with a $100,000 limit on their cards they could have a stroke. Will they cut me off at the knees? I don't know what Barclays maximum exposure rule is, but I don't recall seeing many, if any, people with $100k at Barclays.

 

What to do?

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While I don't hold out much hope for any improvement on the AARP card, it's definitely worth keeping the card open against the possibility that something good will be extended in the course of the account transfer.

 

My personal experience with Chase/Barclays in terms of CL cap vs stated HHI is that Chase's cap is approx 50% of HHI, whereas Barclays is approx 35% of HHI.  That's purely anecdotal and YMMV (no question that card usage plays a role as well).

 

I don't think there's an optimal strategy (with an eye primarily focused on increasing aggregate card limits) ...

 

Your Barclay's cap seems suspiciously low relative to your Chase cap.  If you have only one Barclay's account, I'd be inclined to infer that you've hit the CL cap they're willing to extend on that card product rather than a cap related to HHI.  If so, then there's a good chance that Barclay's will tolerate whatever AARP CL you want to transfer (perhaps, again, with a $50k product cap).

 

If you move $50k to Barclays, I'd expect that Chase would again be receptive to CLI requests on your other cards with them (starting in 6 mo.), subject to a % of HHI threshold (which I speculate is about 50%).  If Chase has previously extended beyond that threshold as a courtesy, you may find that you can't recapture the full $50k that you transfer to Barclays.

 

Just spitballing some ideas here ... FWIW.

 

 

 

 

 

 

 

 

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think of the limit as a commodity and ask which bank you'd rather have hold it?

 

keep the limit with chase and move it to another chase card.

 

If the AARP card is really a card you can use, then wait for a SUB from barclays for the AARP card (assuming the bennies are as good or better than the sucky ones now).

 

I say this as someone who closed ~80k in barclayscard limits in the past couple years while getting to well over 100k with chase.

 

 

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While I don't hold out much hope for any improvement on the AARP card, it's definitely worth keeping the card open against the possibility that something good will be extended in the course of the account transfer.
 
My personal experience with Chase/Barclays in terms of CL cap vs stated HHI is that Chase's cap is approx 50% of HHI, whereas Barclays is approx 35% of HHI.  That's purely anecdotal and YMMV (no question that card usage plays a role as well).
 
I don't think there's an optimal strategy (with an eye primarily focused on increasing aggregate card limits) ...
 
Your Barclay's cap seems suspiciously low relative to your Chase cap.  If you have only one Barclay's account, I'd be inclined to infer that you've hit the CL cap they're willing to extend on that card product rather than a cap related to HHI.  If so, then there's a good chance that Barclay's will tolerate whatever AARP CL you want to transfer (perhaps, again, with a $50k product cap).
 
If you move $50k to Barclays, I'd expect that Chase would again be receptive to CLI requests on your other cards with them (starting in 6 mo.), subject to a % of HHI threshold (which I speculate is about 50%).  If Chase has previously extended beyond that threshold as a courtesy, you may find that you can't recapture the full $50k that you transfer to Barclays.
 
Just spitballing some ideas here ... FWIW.
 
 
 
 
 
 
 
 

You could well be right about the Chase 50% mark. I suppose I could try for an increase and use HHI instead of personal income.

I'm not sure about Barclays. If it's 35% then I still have plenty of room. I think what holds me back with them is that I put through a grand total of about $40 per year on Barclays. Hell, I may just cut it down to $20 since they seriously nerfed the rewards on their Uber Visa card.
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think of the limit as a commodity and ask which bank you'd rather have hold it?

 

keep the limit with chase and move it to another chase card.

 

If the AARP card is really a card you can use, then wait for a SUB from barclays for the AARP card (assuming the bennies are as good or better than the sucky ones now).

 

I say this as someone who closed ~80k in barclayscard limits in the past couple years while getting to well over 100k with chase.

 

 

 

I believe you are on to something, bro. There may be a decent SUB with the new Barclays AARP card.

 

Applying for a new card with Barclays should be really easy. They will deny me at first because of my existing limit with them, but then I will recon and offer to cannibalize one of my other cards and they will agree. I would actually like a good reason to eliminate my Uber Visa anyhow since they nerfed the rewards.

 

I also like your thinking about viewing it as a commodity. I do trust Chase much more than I do Barclays not to get FITA some day with a CLD.

 

P.S. Where are you stashing @Kat58 these days? We had some good phone sex a week or two ago and then she just disappeared. I was looking for an encore.

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think of the limit as a commodity and ask which bank you'd rather have hold it?
 
keep the limit with chase and move it to another chase card.
 
If the AARP card is really a card you can use, then wait for a SUB from barclays for the AARP card (assuming the bennies are as good or better than the sucky ones now).
 
I say this as someone who closed ~80k in barclayscard limits in the past couple years while getting to well over 100k with chase.
 
 

Damned it. One other glitch.

The Chase card is about 8 years old. If I close it, I lose the age. Not that it should be a big deal as it will continue to factor in until it drops off in about ten years, but still.

If I drain most of the limit and let $5k carry over to Barclays, the card will retain its same opening date, right?
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Yes, it is supposed to reflect the original open date even when sold/transferred to another lender.

Good to know. Thank you!

So I guess in the end I will drain all but $5k and then let the card move over to Barclays in order to keep the age.
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