Reply
Established Contributor
zeusta20
Posts: 586
Registered: ‎02-22-2011
0

Advice on what to do for BT...

Alright, so, I have a balance transfer offer, and I also have a personal loan for about 4500. Should I transfer my balance and pay off my personal loan since I have 0% interest till Aug 2014? I know that having a mixture of credit helps my CS, but I also have an auto loan on my credit. The pros is that i'd be saving money since i'm paying no interest. But the cons are that my fico score would take a hit since my UTL will go up.

 

Another question of mine is, does it help my score the fact that I have 2 installment loans on my CR? Or would it be the same if I just have 1? If I close out this personal loan, I still have my auto loan showing.

 

Which do you guys think would be the best bet?

 

The only reason why i'm thinking about doing this is because my monthly payment is about 215.00 a month. Which is fine. But i'm afraid of something happening in the future to where that monthly payment of 215 would hurt me. So i'd rather just get rid of it asap. I don't like to take chances. Anything can happen, and I just like to be in the safest zone possible.lol.

CL-5kNPSLCL-3.6kCL-4kCL-7.5kCL-7kCL 7.9kCL-4.2k
GARDENING SINCE 07/13/13
Valued Contributor
sccredit
Posts: 1,116
Registered: ‎09-14-2012
0

Re: Advice on what to do for BT...

 

-What is the interest rate on your loan?

-If you BT it can you pay it off within the BT period?

Never take credit personally

Amex BCP $24,900; Chase Sapphire Preferred $24,200; Discover It $12,500; Chase Ink Cash $15,000; Chase Slate $13,500; Citi TYP $12,900; Amex SPG Biz $3,000; DCU Visa $10,000; Logix FCU $15,000; Citi Home Depot $8,800; Lowes $8,000; Care Credit $6,000; Penfed Platinum Sig $16,000; Barclay Arrival Plus WEMC $15,000; US Bank PLOC Overdraft $1,500; US Bank Perks+ Visa Signature $8,600; US Bank Edge Rewards Business $10,000; PenFed PLOC $5,000

Moderator
09Lexie
Posts: 26,593
Registered: ‎09-13-2012
0

Re: Advice on what to do for BT...

Having multiple installment loans hasn't helped my CS. The personal loan will remain on your cr after its closed. Can you do the transfer and continue paying the $215? that way, the balance goes down faster and if you need to pay a lower pyt you have the option? Saving money ie not paying interest sounds like a good idea to me.
Established Contributor
compassion101
Posts: 644
Registered: ‎06-06-2012
0

Re: Advice on what to do for BT...

Pay it off, save the money. Don't worry about util unless you need more credit soon. Your score goes back up when you pay it off. When managing your credit actively, saving money > short term credit score.

 

 

Frequent Contributor
pt310
Posts: 380
Registered: ‎05-03-2013
0

Re: Advice on what to do for BT...

+1 on all of the replies...As long as you can pay it off within the 0%. Also, take into account the BT fee, if any.



In the Garden since 7/3/13
Latest Scores: 749 EQ MyFico 8/5/13 | 766 TU Wally Aug '13 | 732 CK Fako 8/7/13 | 776 CS Fako 8/6/13
Goal: 780+ and my own house by next summer!
Established Contributor
zeusta20
Posts: 586
Registered: ‎02-22-2011
0

Re: Advice on what to do for BT...


sccredit wrote:

 

-What is the interest rate on your loan?

-If you BT it can you pay it off within the BT period?


The interest rate on my loan is pretty high. Its around 17%. I MIGHT be able to. Its a close call. But once the period is up, i'd still be paying less interest because my interest on my CC is lower.

CL-5kNPSLCL-3.6kCL-4kCL-7.5kCL-7kCL 7.9kCL-4.2k
GARDENING SINCE 07/13/13
Established Contributor
zeusta20
Posts: 586
Registered: ‎02-22-2011
0

Re: Advice on what to do for BT...


09Lexie wrote:
Having multiple installment loans hasn't helped my CS. The personal loan will remain on your cr after its closed. Can you do the transfer and continue paying the $215? that way, the balance goes down faster and if you need to pay a lower pyt you have the option? Saving money ie not paying interest sounds like a good idea to me.

Thats what I was thinking. To continue to pay the monthly payment as if it was the same. That way i'll be able to pay off a good chunk. I just got the loan Oct '12, and the term is for 3 years. So I'd be able to pay it off before the chosen term. Especially since interst won't be getting racked up.

CL-5kNPSLCL-3.6kCL-4kCL-7.5kCL-7kCL 7.9kCL-4.2k
GARDENING SINCE 07/13/13
Established Contributor
zeusta20
Posts: 586
Registered: ‎02-22-2011
0

Re: Advice on what to do for BT...


pt310 wrote:

+1 on all of the replies...As long as you can pay it off within the 0%. Also, take into account the BT fee, if any.


I may not be able to pay if IN FULL before the BT period ends. But even then, the interest rate would be less on my cc than it would be on my loan. I'm just worried about the hit its going to take on my fico score. Because my goal is to get to 750+ and i'm at 723! So close.

CL-5kNPSLCL-3.6kCL-4kCL-7.5kCL-7kCL 7.9kCL-4.2k
GARDENING SINCE 07/13/13
Moderator
09Lexie
Posts: 26,593
Registered: ‎09-13-2012
0

Re: Advice on what to do for BT...

[ Edited ]
While cc goals are admirable it doesn't put money in my account. Calculate the money you'd be saving if you pay the $215. I think you'll come to the right decision. BT. :smileywink:
Regular Contributor
Hoya08
Posts: 126
Registered: ‎06-05-2013
0

Re: Advice on what to do for BT...

[ Edited ]

zeusta20 wrote:

pt310 wrote:

+1 on all of the replies...As long as you can pay it off within the 0%. Also, take into account the BT fee, if any.


I may not be able to pay if IN FULL before the BT period ends. But even then, the interest rate would be less on my cc than it would be on my loan. I'm just worried about the hit its going to take on my fico score. Because my goal is to get to 750+ and i'm at 723! So close.


Make sure you read the fine print.  If you don't pay-off the BT before the 0% "grace" period ends, interest will accrue on the original BT amount, not what's remaining.  If the CC interest rate is lower than your current rate, you'll save some interest fees :smileyhappy:


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}