How to Reallocate Credit Lines Between Citi Card Accounts
When opening a new credit card, it can be useful to transfer part of your existing credit line from another card. This allows you to manage spending more effectively and meet minimum spending requirements for bonuses.
I recently applied for the Citi® / AAdvantage® Executive World Elite Mastercard® and was approved, but with a lower credit limit than expected. To resolve this, I requested a credit line reallocation from one of my existing Citi cards to the new one, which helped increase my limit and simplified reaching the required spending threshold.
Why Credit Line Reallocation Matters
If you already have several open credit cards, a bank may limit the total amount of credit it’s willing to offer you at a given time. This can reduce your eligibility for higher limits on new accounts.
“I have an excellent credit score, so when I apply for new cards, I usually receive a generous credit line — sometimes over $20,000. However, since I now hold about 20 active cards, some issuers have likely reached their comfort limit on extending additional credit.”
When your total credit exposure with a bank reaches its internal limit, obtaining new credit can become more challenging. Even if approved, the new card may come with a smaller credit line, as the issuer hesitates to increase overall risk.
Key Takeaways
- Reallocating credit can help increase limits on new cards when banks cap total credit exposure.
- This approach can be essential to meet spending thresholds for welcome bonuses.
- Always maintain a strong credit score to ensure flexibility when managing multiple accounts.
Author’s Summary
Smart use of credit line reallocations helps maximize new card benefits and maintain flexibility across multiple Citi accounts.