Reader Dan pointed out a useful tip that I don’t think we’ve covered. Before you close any Bank of America credit card it’s recommended to lower the credit limit at least a few days before you cancel. This is because Bank of America has an internal maximum credit limit for each individual, when a card is cancelled the limit on that card doesn’t become available again until the card has been roughly closed for a year. By reducing the credit limit before cancelling you’re able to free up this available credit for future credit card applications.
I’m sure most seasoned churners already knew about this tip (it’s actually on most of the Bank of America credit card pages on Flyertalk for example). But still thought it was worth mentioning to those newer to the game/those unaware. For more things you should know about Bank of America cards, click here.
Is it still recommended to reduce the credit line before churning the Alaska biz card and what is the min credit allowed?
Sad DP: I reduced the CL on the card to $500 from $7k before closing it and applied for 2 more cards next day. Alaska card instant approval and Premium rewards card got denied due to maximum credit limit extended.
Called multiple times for recon but hard no regarding reallocating the available credits to new card.
What’s the lowest you can lower your credit limit to?
I have been told by the lowest I could do is $300.
I wasn’t aware of this, recently got my first BOA denial when I applied for Virgin Atlantic card. They stated too many new accounts in past 12 months(I had 5 personal) and the fact I have no banking relationship with them besides credit cards. I had just closed a BOA card thinking that might free up credit to apply for another, didn’t know about the closed for a year thing.
it also helps for your credit when you close a card with acredit line on it
Good information to know. It would be great to get in included in this post for everyone to see: https://www.doctorofcredit.com/things-everybody-should-know-about-bank-of-america/
Yup added
Does this advice apply to both business and personal accounts?
Good tip!
If you have existing BofA cards with a high credit limit (which you don’t plan to cancel), is it a good idea to lower the credit limit on those cards before applying for another BofA card? Or is it better to keep the high limits and possibly have the option to reallocate credit during reconsideration?
I had an existing card with a big limit (over $50k) and recently applied for another. They reallocated about 8k and gave the new card a $15k limit. I don’t think you need to reduce CL.
Did you call after you applied for the new card or did they reallocated the credit for you automatically?
In my case they relocated the credit limit right after my new card got approved. I don’t contact them.
thank you for the data point
Same here as Porky, I’ve had BOA automatically reallocate CL in the past and approve a new card.
Worst bank ever. Put my wife’s card as pending randomly and sent a letter asking for 2 forms of proof of identity within 30 days. We sent over 4 the next day but the card was cancelled 5 days after the letter date. Lost her promotion points and all.