cancel
Showing results for 
Search instead for 
Did you mean: 

Balance Transfer Question

tag
Anonymous
Not applicable

Balance Transfer Question

Right now, I have two store credit cards that are on 0% APR deals, two normal credit cards and one military credit card that has a 6%APR. My wife just got a Citi double cash card that has an 18 month 0% APR balance transfer deal, as well as another normal CC. The table on the top is my current situation with various cards at various cycles of paying off the 0% deals. Regardless of what I do, the AMEX will get paid off, like always by the end of the month. The star card has kind of been on the back burner for a while due to its low APR. Idea I: Pay off all other CC debt with the new Citi card.

Idea II: Pay just enough get each card below 30%.

Idea III: Pay off just star card.

Idea IV: Pay off just the retail cards.

My wife is an authorized user on all of my cards and I am on hers. My two questions are. Will this have a negative or positive impact on my wife’s or my credit scores? (We are both around 750) Is this a good idea? If not, what would be a better move?

 

http://i.imgur.com/Rau17gX.png 

Is the above mentioned chart.

Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: Balance Transfer Question

I am all about making life as simple as possible, so if I couldn't pay off all my cards, and I had a 0% APR offer, I would BT all my cards to the one with the 0% APR so that I would only have to make 1 payment a month. Your situation is a bit tougher because you have balances on a few 0% cards already, so if you BT them, you'll be losing money by having to pay the BT fees. 

Message 2 of 7
takeshi74
Senior Contributor

Re: Balance Transfer Question


@Anonymous wrote:

My wife is an authorized user on all of my cards and I am on hers. My two questions are. Will this have a negative or positive impact on my wife’s or my credit scores?


Impossible to say.  Being an AU isn't inherently benefical or detrimental.  All being an AU means is that the tradeline may show up on the AU's reports.  If that's the case AND if the tradeline is considered then the tradeline basically factors in like any other tradeline.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

The specifics of the tradeline and the AU's credit profile both play a part in determining impact.

 

Generally speaking, 100% positive Payment History helps.  Low revolving utilization (falls under Amounts Owed) helps.  A aged account can help but that depends in part on the AU's  AAoA.  Lates and other derogs do not help.  High revolving utilization does not help.  A new account will drop one's AAoA but to what extent depends on the AU's AAoA.

 

Accounts where one is an AU are not necessarily considered by all scoring models and creditors.  In cases where they are not, the tradeline will have no impact since it is not considered. 

 


@Anonymous wrote:

The table on the top is my current situation with various cards at various cycles of paying off the 0% deals. Regardless of what I do, the AMEX will get paid off, like always by the end of the month. The star card has kind of been on the back burner for a while due to its low APR. Idea I: Pay off all other CC debt with the new Citi card.

Idea II: Pay just enough get each card below 30%.

Idea III: Pay off just star card.

Idea IV: Pay off just the retail cards.

 


You definitely put work into that table.  What you want to do is get revolving utilization as low as possible.  Both individual and overall revolving utilization matter.  Number of reporting balances also plays a part but to a smaller degree.  Do whatever it takes to get revolving utilization and number of reported balances down.

 

Keep in mind that 30% is a suggest max.  It is not ideal and far from it.  You don't want to max a card as in Option I and you don't want to leave cards with high utilization as in Option IV.  Get them all down.

Message 3 of 7
Anonymous
Not applicable

Re: Balance Transfer Question

so between 2 and 3 what do you suggest?
Message 4 of 7
Anonymous
Not applicable

Re: Balance Transfer Question

I go on a $1,200 threshold. 1200 bucks and less should just be paid off where they are. One exception is when its a big hand of cards. that's $125+ of minimum payments that can be served to 1 bill
Message 5 of 7
Anonymous
Not applicable

Re: Balance Transfer Question


@Anonymous wrote:
so between 2 and 3 what do you suggest?

The problem I see with going with option 2 or 3 is that your monthly minimum payment would be over $400. If you were to just combine everything into the Citi DC then you can use that entire >400 amount to start knocking out your debt at 0% APR. Yes you will have high util on that card for a few months, but it'll just be a few months.

Message 6 of 7
Anonymous
Not applicable

Re: Balance Transfer Question

I feel likt this is the option I've been leading on. Thanks

Message 7 of 7
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.