BT to checking for 10k?

[Anonymous]

Sooo this is a pretty nuts, funny...stupid?...Risky?... Question.

But I was wondering. Discover has a 0 fee and 4.99 bt offer, wondering what negatives could and maybe should(or shouldn't) happen by doing a BT for 10k into my BoFA checking(got two checking accounts) and threw 10k into a chase savings for 1. The bonus and 2.....maybe help with a card offer to bypass 5/24?

My limits 16.5 on discover so it would use up quote a hefty chunk, however my other cards would stay reporting a zero balance.


......how bad of an idea is this?

[Anonymous]

To add(on mobile) the savings bonus is 250, so there would be a net gain of $120, even with the interest of 4.99 for 90 days( I suppose there would also be a small amount of interest earned on the 10k also)

[NRB525]

It's not a bad idea. Discover only wants to be paid back. Do that, and pay the fees and interest, and you'll be fine.

The high utilization will cost you a few points. That may or may not have an impact on your CSP app, presuming you can get past the 5/24 hurdle. 

[pipeguy]

I just got an answer back from Discover asking about how they would view my utilization using more than 50% of my credit line for a balance transfer.

I value my Discover card and after the go round with Comenity shutting down my Total Rewards card, I'm a little gun shy (just a little). The answer was Discover allows you to use upto 95% of your credit line for balance transfers and won't take any AA based on that factor - thats. not to say you won't take a hit for having a high utility maxed out CL card on your CRA reports, but Discover won't care based just-only on that factor. 

[Anonymous]

This is all good info, I may ask them myself to see if they say the same in a few days. My other cards should all be easy enough to keep reported at zero.
The idea (however cheap, underhanded...misleading...?) Would be to app for a Freedom/fu before my discover reports the balance transfer having gone through, the period where all accounts are zero, and only discover is reporting.

If anyone else has anymore input I'd really appreciate it. I've also gotta look at how often the 10k has helped get past 5/24(if at all). The savings bonus is nice, but I'd gladly not even profit if it could get me one of the 5/24 cards.

[Ghoshida]

Discover removes the grace period the moment the BT kicks in. Unless you have 0% purchase APR, something to keep in mind.

[Anonymous]

Right. Good point, my zero apr is ending after my next statement, but realistically my finances are in order enough that I don't think that should really be too much of a worry. I should be able to keep my purchases wiped out and off of any interest so my only reeaaalll balance would be the balance transfer the entire time.

The interest I'd pay I'm too not worried about, this is all in an effort to get a freedom/fu a year ahead of schedule. The savings bonus is 250, I'll gladly pay $250 in interest in this experiment if it got me a freedom card(and no loss in Chase/Discover relationships).

The way I see it, I don't deserve the savings bonus anyway since I'm not a high roller that actually has 10k so I'll gladly give it up

[Anonymous]

Sounds like a solid plan. Please remember to come back and update your thread with results. Thanks in advance!

[Anonymous]

Looks like this might all be a moot point. Upon further review special consideration doesn't overrule5/24( or atleast I haven't seen any posts yet that do) and I thought it had, or that it would at least prompt a prequal.

[UncleB]

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@Anonymous wrote:
Looks like this might all be a moot point. Upon further review special consideration doesn't overrule5/24( or atleast I haven't seen any posts yet that do) and I thought it had, or that it would at least prompt a prequal.

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+1

The most recent thread I can recall that involves someone using the special consideration form to try to get around 5/24 doesn't appear to be going anywhere:

http://ficoforums.myfico.com/t5/Credit-Card-Applications/CSP-DECLINED-with-740-Credit-Score-Really-CHASE/td-p/4513993/page/4

Of course, there's other variables that are in play with the other thread, like the OP going for other Chase cards at the same time as the CSP.  If it were only a CSP app, the special consideration might have had a different outcome... or might not.  Also, I'm not sure if the OP in the other thread has received a 'hard' reply yet (as of now), so there's still a chance, however small.

Whatever you decide, let us know how it goes!