Personal Finance

Distribution and Consolidation on Credit Cards

  • Last Updated:
  • Jan 13th, 2017 4:29 pm
[OP]
Newbie
Mar 31, 2010
36 posts

Distribution and Consolidation on Credit Cards

Hi All,

I wanted to see what the rules on credit distribution and consolidation are. If I understand correctly, assuming you have multiple cards with a certain financial institution:

Distribution = Move available credit from one card to another

Consolidation = Provided the cards are paid off, move all of the credit from multiple cards into one (i.e. consolidate the credit)

The questions are:

1) How many times can you distribute credit? i.e. how frequently? Does it have any effect on your credit?
2) How soon does credit become available for distribution purposes? e.g. I pay $2000 on a card today and the transaction gets posted in 2 business days. Can I distribute the $2000 to a second card under the account after 2 days (i.e. soon after the transaction posting)?

Basically, I have 3 cards with MBNA where I have used the Balance Transfer at 0% option on two of the cards in the past, but still have an opportunity to use the 0% on the 3rd card. Just trying to see If I can distribute the available the credit from the first two cards to this new card in order to avail the 0% BT on a higher amount (as result of the distribution)

Thanks
1 reply
Sr. Member
Sep 24, 2013
746 posts
464 upvotes
Ontario
geniuspaki wrote:
Jan 13th, 2017 3:16 pm
Hi All,

I wanted to see what the rules on credit distribution and consolidation are. If I understand correctly, assuming you have multiple cards with a certain financial institution:

Distribution = Move available credit from one card to another

Consolidation = Provided the cards are paid off, move all of the credit from multiple cards into one (i.e. consolidate the credit)

The questions are:

1) How many times can you distribute credit? i.e. how frequently? Does it have any effect on your credit?
2) How soon does credit become available for distribution purposes? e.g. I pay $2000 on a card today and the transaction gets posted in 2 business days. Can I distribute the $2000 to a second card under the account after 2 days (i.e. soon after the transaction posting)?

Basically, I have 3 cards with MBNA where I have used the Balance Transfer at 0% option on two of the cards in the past, but still have an opportunity to use the 0% on the 3rd card. Just trying to see If I can distribute the available the credit from the first two cards to this new card in order to avail the 0% BT on a higher amount (as result of the distribution)

Thanks
There is a thread regarding this. Read the OP. http://forums.redflagdeals.com/official ... ad-813854/

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