Credit Cards

[Credit_repair]

I have a BOA BT offer for 0.99% valid until 06/30/2010 in my online account... my CL is 4000 with a 0 balance. this has a 4% BT Fee...

I currently have:

1 Chase with a balance of 485 (I expect to pay in full before statement cuts on 08/12/09)

1 Chase Amazon Visa with a balance of 300.00 (I expect to pay in full before statement cuts on 08/24/09)

1 GEMB Amazon card with a balance of 9.00 (I will definately PIF as soon as my card arrives and I set it up online!)

1 AMEX Blue (My brother who is an AU uses this card - balance is 600.00) - he usually makes 2x minimum payments. This is the one that usually reports to the CRA's. (counts for <10%)

1 Auto loan - amount is about 27,000

Should I BT 3000 or 3500 from my auto loan for this offer? my current auto loan is at 13% and if i xfer 3500 from it, i will be paying less interest on at least that much for a year... or is the 4% a hinderance?

I know that will tank my scores as utilization for my revolving accounts will go up...

What should I do?

[mgs2010]

Don't pay your car with a credit card, not matter how small the amount. the credit card is unsecured debt, the car is secured. You definitely don't want to take an amount of your secured debt onto an unsecured credit card. Just start paying the car biweekly and save money on interest that way. It will help you pay the car off early, for example my 60 month loan paying half payment every other week (payment is 375, paying 200 every 2 weeks) is going to have the car paid off in 48 months rather than 60.

[haulingthescoreup]

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Credit_repair wrote:

... Should I BT 3000 or 3500 from my auto loan for this offer? my current auto loan is at 13% and if i xfer 3500 from it, i will be paying less interest on at least that much for a year... or is the 4% a hinderance?

I know that will tank my scores as utilization for my revolving accounts will go up... What should I do?

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Yes, you have to factor that BT fee in.

Using rough numbers, not trying to do compound interest or anything, this BT would actually cost you 5%: 0.99% + 4% over a 12 month period. If the BT period were longer, it would work out to a slightly lower rate; if the BT period were shorter, it could be a lot higher. For instance, a 4% fee for a 6-month BT would be the equivalent of 8%.

I don't think it's worth fooling with, unless you're trying to sweet-talk a CLI from BofA. I opened a card with them and immediately did a BT, putting the card at 84% util. I called after a month to say that it was hurting my scores (which it really wasn't, but hey, it could have), and could the raise the limit. They did.

[txjohn]

BT's only qualify card to card, they won't give it to you as cash or toward an installement loan.

The only way you would be able to do such a thing is to take cash against your non-BoA cards (incurring cash advance fees) and then BT to BoA incurring the BoA 4%, meaning you will pay 7-8% in Cash/BT fees just to move the money around.  Then you add in the 0.99% APR.  First year APR is now around 8-9% when you combine promo APR with total fees incurred.

I don't recommend doing that.  I would recommend speaking with a couple Credit Unions about a refinance and see if you can get a better APR (CU's have 3.99 to 5.99 rates on auto refi's now with good credit.)

[haulingthescoreup]

I don't know about that. I BT'd over $8K from a home equity line of credit.

Granted, that is a form of revolving credit, but BofA said that all they needed was the number of the account and the bank routing info.

Interesting point though, and something to check out.

[creditwherecreditisdue]

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haulingthescoreup wrote:
I don't know about that. I BT'd over $8K from a home equity line of credit.

Granted, that is a form of revolving credit, but BofA said that all they needed was the number of the account and the bank routing info.

Interesting point though, and something to check out.

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BofA sends out checks that can be used at the BT rate as well for just about anything. I have a pile of them right in front of me.

Even so moving debt from secured to unsecured, installment to revolving is bad business. It is going to worsen your UTIL and invite AA from your other issuers.

Message Edited by creditwherecreditisdue on 07-29-2009 01:26 PM

[Credit_repair]

Thanks everybody for your replies.

Hauling, you are right in that I wanted to ask for a Credit line increase... but with the unstable market, I thought dangling a carrot of keeping a balance on a BT would do that for me... but I dont want AA from my other credit card companies and being CLD'ed because of a huge BT.

I have never done a BT Before and dont want it to negatively impact the profile I have worked so hard on...

[haulingthescoreup]

It's definitely a tricky decision. A year ago, or even six months ago, I would have said that it would be a great, and probably effective tactic.

Now the banks are so twitchy that it's impossible to know if this would bother them or not. I kinda don't think it would --members are still successfully BT'ing here --but I would hate to see it blow up.

[Credit_repair]

Thanks Hauling,

I think I am going to decline the BT offer for now... I dont want AA from my other creditors.

 I planned on paying my Car note every three weeks instead of every month and hope to save some interest that way.

Which would be better though, making weekly payments equalling 1.5 times of my monthly note (so paying 800 per month - 200 each week- when the payment due is 561) or paying once every three weeks (575 once every three weeks)?

Where would I save more money? and which one would look better to American Honda as well as other creditors?

[FaircreditguyFL]

If the offer was at Transfer For Life - and 2 years ago - I would do it in a heart beat.  Never, no way, no how in today's climate.