Good afternoon everyone, a few days ago I did an App-O-Rama (full details and results to come). One of my credit card applications was for a Bank of America Alaska Airlines Credit Card. I was instantly approved online for a $9,000 credit line. If you are approved for a credit line over $5,000, you will receive the Visa Signature version that comes with a 25,000 Alaska Airlines miles sign up bonus on approval. I will also get a $100 statement credit after spending $1,000 on the card within 3 months. That is not the interesting part of the story though…
Yesterday, I received the following letter from Bank of America regarding my recently approved Bank of America Alaska Airlines Visa Signature Credit Card. In the letter, it says I was approved for a $9,000 credit line with a subsequent $2,700 cash advance limit (the cash advance limit is usually set at 30% of your credit line).
The second paragraph in the letter mentions that Bank of America lowered the credit line on my Bank of America Virgin Atlantic Credit Card down to $5,000. Strange…
After logging into my Bank of America online account, I can see my 3 credit cards and corresponding credit lines:
- Better Balance Rewards: $1,000
- Virgin Atlantic: $5,000
- Alaska Airlines: $9,000
- Total Bank of America credit line: $15,000
Before I applied for the Bank of America Alaska Airlines Credit Card, I had 2 Bank of America Credit Cards open with the corresponding credit lines:
- Better Balance Rewards: $1,000
- Virgin Atlantic: $11,500
- Total Bank of America credit line: $12,500
I find it odd that Bank of America lowered my Virgin Atlantic credit line from $11,500 to $5,000 (a decrease of $6,500 in credit line), only to approve my Alaska Airlines credit card for a $9,000 credit line. In the months since I first got the Bank of America Virgin Atlantic Credit Card, I spent $12,000+ on the credit card to receive 50,000 bonus miles. Logically, this should have been the new credit lines, since the Visa Signature version only needs a $5,000 credit line. I just don’t understand Bank of America’s logic…
- Better Balance Rewards: $1,000
- Virgin Atlantic: $9,000
- Alaska Airlines: $5,000
- Total Bank of America credit line: $15,000
Have you experienced anything like this recently with Bank of America? If so, let me know below. If you have any questions, please leave a comment below. Have a great Sunday everyone!
P.S. After I was instantly approved for the Bank of America Alaska Airlines Visa Signature Credit Card, I decided to apply for the Bank of America Spirit Airlines Credit Card, but I was denied. I called Bank of America’s reconsideration phone number, but the rep was not helpful. I will wait until the denial letter comes in the mail and call again. Hopefully I can move some credit line from the $9,000 credit line on my Alaska Airlines credit card to the Spirit Airlines Credit Card. Stay tuned…
Odd, to you, but credit line adjustment is a very standard practice for BofA. To create available credit for a new account, a portion of a current credit line is moved. The new account typically receives a larger limit than the existing account. Perhaps that is encourage spending on the new account.
I guess that makes sense, but it just seems a bit extreme to me.
Sure, but normally they call.
I had the same thing happen to me with Chase. Lowered credit limit of other chase card and approved my Hyatt. After I was approved online for Hyatt, I tried to sign up for Marroitt and and got the similar “Can’t give you a decision” , we will let you know by mail. Never got anything in the mail. I spent the $1000 on my Hyatt to get the 2 free nights, payed off the Hyatt, waited about a month, re applied for a Marriott and Poof, I was approved.
Thanks for the data point, Mike. I’m glad you were able to get approved for both Chase credit cards. Are those the only 2 Chase credit cards you currently have open?
I also recently got the Alaska card. They gave me a $17,500 limit and took ABOUT $5,000 from another card.
Have you had the Alaska card before? Is the $100 just got new (first time?) cardholders?
The public offer does not have the statement credit offer. There is a special offer available that has a $100 statement credit after spending $1,000 in 3 months.
I’ve had a few Alaska Airlines cards in the past (Visa Sig, Visa Plat, and Biz).
Strange that they moved credit from an existing BofA card and gave you a huge CL.
I applied under the one that showed the $100, but I thought it had language about for new accounts only. I think I’ll do the spend and see what happens.
I don’t think the terms and conditions of the $100 statement credit matter. Just spend $1,000 and wait for your statement credit to post.
I can’t say I am too surprised. Bank of America is notoriously stingy with credit limits. Add them to the likes of stingy Barclay and Discover.
Had something similar happen to me. Recently applied for another Alaska card. In order to approve my app, credit analyst said that he had to take some credit from my existing AS card. Reduced that line from $8k to $5K in order to approve a $17k credit line on the new card. Didn’t make much sense to me, but I wasn’t going to argue another approval.
Haha, that is pretty crazy. Seems like they want to give you the max available credit possible on the Alaska Airlines credit card and reduce the credit lines on all your other Bank of America credit cards to as low as possible.
I have similar issues with BOA credit operations with both personal and business cards, which is why we use Wells for our corporate Visa ( $150K). When the bottom feel out of the market in 2008 many of the banks began lowering credit lines, regardless of your credit history. Then on our corporate side BOA canceled our card due to a disputed bill with one of our vendors for $49.00!!! Our Amex Business PLT I can charge well over 300K at a pop! We have in excess of 1million in LOC’s yet good old BOA cancelled our card over $50.00 even after talking with them!
Got to love it. No wonder Wells Fargo and Amex are so far ahead.
Haha, that is pretty crazy. You never know what to expect from BofA.
This kind of thing routinely happens to me and my husband every time we open a new B of A CC. Just how they do business.
Gotcha, it was new to me and I’ve had a few BofA CCs over the years.
Yeah, it starts to happen when you have multiple CCs open at the same time and bump up against B of A’s CL limits.
I guess I am bumping up against the top of my BofA credit line.
What I find most interesting is your application for the Spirit Airlines card. Grant, did you apply for the sign-up bonus or is there a strategy beyond that to this card?
15,000 Spirit Airlines miles plus awards starting at only 2,500 miles each way make the sign up bonus decent. Flights from OAK to LAS and all over the country.
Grant, B of A lacks logic at times; they are flaky! Before the “multi-card crack-down”, in early June, I got approved for a 17 K CL, with an existing 9 K on a Virgin Atl card. Called the recon line to get 2nd pending Alaska card approved, then they took 4 K off the V Atl, and added 5 K more for the second Alaska card, and left the 17K on the first card alone! Wacky!
Totally wacky, it doesn’t make much sense to me.
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do you have to pay your credit limit later,cause i have a big problem? Thanks
Yes, you should pay off your credit card balance in full every month.