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Established Contributor
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Registered: ‎02-22-2011
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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.

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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?

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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
Posts: 724
Registered: ‎06-06-2012
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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.

 

 

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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.



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Established Contributor
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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.

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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.

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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.

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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. Smiley Wink
Regular Contributor
Posts: 169
Registered: ‎06-05-2013
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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 Smiley Happy

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