The news: Chase will let customers transfer credit limits between cards online without having to make a phone call or send a secured message, per a report by the Frequent Miler.
- Credit limits can only be transferred between cards of the same classification, such as personal or business.
- Each card has a minimum credit limit, and an account must have been open for at least one year before it becomes eligible for transfers.
Why this matters: Chase cardholders gain more control and flexibility over their credit portfolio by being able to transfer credit limits to their preferred cards. Cardholders can optimize their credit utilization ratio, leverage 0% APR cards, and shift credit based on daily spend trends to maximize their rewards potential.
Eliminating the need to speak with a Chase customer service agent also turns what could have been a cardholder’s chore into a task completed in seconds.
Staying ahead of the competition: American Express is the only other issuer that offers a similar in-app functionality. As an issuer that targets affluent customers, Chase needs to make sure that its offerings are best in class.
Our take: For credit cards courting millennial and Gen Z cardholders, managing and optimizing financial health simply will be critical to securing their loyalty.
This flexibility increases the incentive for cardholders to get more than one Chase card. With multiple accounts, Chase captures more spend and increases its probability of being top-of-wallet.