Is pursing a higher credit line with BofA a waste of time?

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XM16E1
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Joined: Tue Oct 22, 2019 9:34 pm

Is pursing a higher credit line with BofA a waste of time?

Post by XM16E1 »

Background: single member LLC, doing 12+ million annual sales this year (almost double last year). I'm on track to spend 3.5 million on credit card purchases this year. Currently use my citi double cash card with a 200k limit which has generated me over 100k in cash back in the past 2.5 years. I run it up and pay off several times a month.

I wanted the 2.6% cash back from BofA premium rewards recommended here. So I put 150k in Merril, waited the 3 months, and then signed up for the premium rewards and their credit card.

BofA offered a limit of 18k. I called premium rewards and then they transferred me to a credit person. I asked for a 250k line. They asked about my income (6.9 mil gross for 2019), other assets in other banks (2.7M) and then said sorry, your credit report has too many inquires and you don't have enough on deposit with us. 18k is the most we can offer. My credit is flawless. I asked for a comparable line to the citi card and he said sorry I don''t see that here. I'm sure Citi reports to Experian so no idea why he said he couldn't find it. The whole tone of the call gave me the impression they thought I was lying.

I could move more money into Merrill but that would be pointless if BofA is unlikely to give a significantly higher credit line. What do you guys think?
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JDCarpenter
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Re: Is pursing a higher credit line with BofA a waste of time?

Post by JDCarpenter »

Weird. But there are so many variables....

We were doc/lawyer couple with less than 1,000,000 annual going through our BoA checking account and with only 100-150k with Merrill and were able to get increase to 45k on our second card with them when we asked. BUT, that was in '16, we had the other card (also at 45K with active monthly charges of thousands) for a good amount of time, and we were both technically employees with mainly w-2 income. Like you, we had close to "perfect" fico scores. (Plus, DW just got a new BoA/Alaska Airlines card with 40K immediately issued despite "retired" occupation....)

Maybe use the new card a moderate amount for 6 months and try again for an increase?

Good luck in figuring it out.
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BlackcatCA
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Re: Is pursing a higher credit line with BofA a waste of time?

Post by BlackcatCA »

Maybe you can ask to speak with someone handling business accounts? Customer reps are highly variable in terms of their knowledge. Also, I think they have a business credit card unit, which may give you larger credit lines you need.
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whodidntante
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Re: Is pursing a higher credit line with BofA a waste of time?

Post by whodidntante »

The BoA people are easily startled, but they will soon be back, and in greater numbers.

It's been a while since BoA and I started dating but I think my first credit limit with them was also 18k. It's normal for an issuer to not grant a large credit increase until the account has seasoned a bit. You'll be able to get more over time, primarily through opening new cards and then reallocating your credit limits. Doctor of credit lays out the rules for applications and reallocate credit limits. You need to be strategic about it.
https://www.doctorofcredit.com/things-e ... f-america/

One trick I sometimes use is to overpay a card before a large purchase. For example, I needed to spend $7,500 on a US bank business card where they only gave me a $3,000 credit limit. :oops: So I paid $5,000 and waited for the payment to post. Then I made my $7,500 purchase. I don't know how BoA will react if you prepay $100k and then spend $115k, though. My guess is that will put human eyes on your account and who knows what they will do?

I've never heard of BoA offering a 200k credit limit to anyone. But good luck.
stan1
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Re: Is pursing a higher credit line with BofA a waste of time?

Post by stan1 »

BlackcatCA wrote: Fri Aug 21, 2020 5:36 pm Maybe you can ask to speak with someone handling business accounts? Customer reps are highly variable in terms of their knowledge. Also, I think they have a business credit card unit, which may give you larger credit lines you need.
I'm sure the business card unit won't offer the cash back rewards OP is seeking.
BuddyJet
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Re: Is pursing a higher credit line with BofA a waste of time?

Post by BuddyJet »

I’d go in to the branch and talk with business banker. Be prepared to discuss your business.

Would you be willing to move business banking to BoA if line granted?
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Jain82
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Re: Is pursing a higher credit line with BofA a waste of time?

Post by Jain82 »

Bank of America preferred program is available for business customers as well. You probably need to apply for business credit card. Business credit cards are not reported on a person credit history in most cases. If Citi Double Cash card is a business version then that might explain why the card is missing from your credit history. Citi personal cards are reported to all 3 major credit bureau’s.

Bank of America preferred program for business is difficult to qualify as compared to personal due to requirement of $100k assets for platinum honors status for max rewards. In case of personal, assets transferred at Merrill Edge count towards the $100k asset requirement.

Most banks max credit limit exposure on a single card is around $50K. Higher limits are granted to private banking customers.
Actin
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Re: Is pursing a higher credit line with BofA a waste of time?

Post by Actin »

I make way less than you, but as another business owner, do not do business with BofA. It's an absolute clown show in every aspect.
Lee_WSP
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Re: Is pursing a higher credit line with BofA a waste of time?

Post by Lee_WSP »

You probably need to speak with one of their high net worth bankers; because the other way to get such a high limit is to just have a very long relationship with them and keep requesting credit line increases once a year.
obgraham
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Re: Is pursing a higher credit line with BofA a waste of time?

Post by obgraham »

I'm a little surprised by OP's experience with BofA. When I was running a business and banking through them they bent over backwards, yes sir yes sir, private banker, skip the lines, plenty of credit (don't know about 250K -- out of my league!)

But once I slowed down and headed to retirement they dropped me like a hot spud. Wouldn't return calls, everything had to be decided "at corporate", "that's not our policy", blahblahblah.

Horribly run company. Leaving them was all positive for me!
afan
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Re: Is pursing a higher credit line with BofA a waste of time?

Post by afan »

Contact the private bank. With your assets you should be able to get their attention without transferring in what, to you, is a large amount of money. Tell them what you want to do and ask how much they need at Merrill Edge, or wherever, to get it. They will be happy to talk with you.
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