topic Re: Shuffle credit balances for a better score? in Understanding FICO® Scoring

Shuffle credit balances for a better score?

Tastycakes — Mon, 25 Jun 2012 15:25:07 GMT

Lets say I have high util at ~85% with 7 credit accounts. 2 accounts are credit cards with high limits with 70% usage and 6 year history. The rest are low limit cards (mostly store cards) that are maxed out with 2-5 year history and 2 of these smaller cards each have a 30 day late payment. Would it be better balance transfer my low limit cards/store cards that are maxed out to the 2 main cards (maxing those out) and have 3-4 cards with low limits and $0 balances? Also do you think having a balance or not on a card w/ a 30 day late matters?

Thanks in advance.

Re: Shuffle credit balances for a better score?

pizzadude — Mon, 25 Jun 2012 19:58:44 GMT

Tastycakes wrote:
Lets say I have high util at ~85% with 7 credit accounts. 2 accounts are credit cards with high limits with 70% usage and 6 year history. The rest are low limit cards (mostly store cards) that are maxed out with 2-5 year history and 2 of these smaller cards each have a 30 day late payment. Would it be better balance transfer my low limit cards/store cards that are maxed out to the 2 main cards (maxing those out) and have 3-4 cards with low limits and $0 balances? Also do you think having a balance or not on a card w/ a 30 day late matters?

Thanks in advance.

It's really hard to predict if you would get a significant FICO gain from doing this, but unless you are trying to tweak your scores for a major purchase right now I would look at it from an interest rate perspective ~ what scenario would benefit you most in terms of paying the balances down ?

Re: Shuffle credit balances for a better score?

cmthomas06 — Tue, 26 Jun 2012 04:36:46 GMT

Im kinda in the same situation. I think it all depends on the total utilization ($5000 on 1 card is the same as $2500 on 2 in the creditors eyes), but I could be wrong. I just did a BT from high interest cards to a 0% card in order to save on interest. Some other users pointed out that some lenders may see this as being finacially "responsible" because I am saving on interest. Do it just to save $ ton interest and put it towards your debt.

Re: Shuffle credit balances for a better score?

BigDaddy18 — Tue, 26 Jun 2012 11:29:46 GMT

pizzadude wrote:
Tastycakes wrote:
Lets say I have high util at ~85% with 7 credit accounts. 2 accounts are credit cards with high limits with 70% usage and 6 year history. The rest are low limit cards (mostly store cards) that are maxed out with 2-5 year history and 2 of these smaller cards each have a 30 day late payment. Would it be better balance transfer my low limit cards/store cards that are maxed out to the 2 main cards (maxing those out) and have 3-4 cards with low limits and $0 balances? Also do you think having a balance or not on a card w/ a 30 day late matters?

Thanks in advance.
It's really hard to predict if you would get a significant FICO gain from doing this, but unless you are trying to tweak your scores for a major purchase right now I would look at it from an interest rate perspective ~ what scenario would benefit you most in terms of paying the balances down ?

Not to rain on your parade or sound like your dad or anything but I would go with the APR paydown rule so if it helps you out to transfer stuff to a card that has a lower APR then I would do that and focus on paying down your debt first!

Re: Shuffle credit balances for a better score?

tuntavnerarty — Tue, 26 Jun 2012 14:29:42 GMT

i dont think it will do much for your score. the best thing to do is pay them off in full and only use 5% or less of your available credit then your score will skyrocket thats the only way.

Re: Shuffle credit balances for a better score?

Tastycakes — Tue, 26 Jun 2012 14:46:25 GMT

BigDaddy18 wrote:
pizzadude wrote:
Tastycakes wrote:
Lets say I have high util at ~85% with 7 credit accounts. 2 accounts are credit cards with high limits with 70% usage and 6 year history. The rest are low limit cards (mostly store cards) that are maxed out with 2-5 year history and 2 of these smaller cards each have a 30 day late payment. Would it be better balance transfer my low limit cards/store cards that are maxed out to the 2 main cards (maxing those out) and have 3-4 cards with low limits and $0 balances? Also do you think having a balance or not on a card w/ a 30 day late matters?

Thanks in advance.
It's really hard to predict if you would get a significant FICO gain from doing this, but unless you are trying to tweak your scores for a major purchase right now I would look at it from an interest rate perspective ~ what scenario would benefit you most in terms of paying the balances down ?
+1

Not to rain on your parade or sound like your dad or anything but I would go with the APR paydown rule so if it helps you out to transfer stuff to a card that has a lower APR then I would do that and focus on paying down your debt first!

Well I'll be transferring to the main cards anyway. I have PNC which has that pnc.com/options thing where you can get a really low APR for a year if your having "trouble" making payments but you just can't touch your cards for that year, I did it last year and got offered 4% and 7% (obviously accepted the 4%). So I was going to transfer as much as possible onto the main cards then lock in that low APR for a year again.

I just have to answer the questions right because when you do the pnc.com/option thing they ask you a little questioner of why your having trouble which I assume if I answer "because I'm broke" they'll just lower my limits lol. Last year I chose the "changed jobs w/o a loss of pay" and got 4% APR which helped out a lot, wonder if I can use the change jobs option again :).

Re: Shuffle credit balances for a better score?

BigDaddy18 — Wed, 27 Jun 2012 08:35:25 GMT

Well I wish you all the best good luck!

Re: Shuffle credit balances for a better score?

tuntavnerarty — Wed, 27 Jun 2012 15:46:45 GMT

yeah but if you just keep transfering mone from one card to another you will never get out of debt and the goal of restoring your credit especially with a credit card is to have a low balance. so pay it off asap and stop wasting your money.

Re: Shuffle credit balances for a better score?

FrugalRican — Wed, 27 Jun 2012 15:50:59 GMT

Tastycakes wrote:
Lets say I have high util at ~85% with 7 credit accounts. 2 accounts are credit cards with high limits with 70% usage and 6 year history. The rest are low limit cards (mostly store cards) that are maxed out with 2-5 year history and 2 of these smaller cards each have a 30 day late payment. Would it be better balance transfer my low limit cards/store cards that are maxed out to the 2 main cards (maxing those out) and have 3-4 cards with low limits and $0 balances? Also do you think having a balance or not on a card w/ a 30 day late matters?

Thanks in advance.

How much are the Balance Transfer fees?