Balance Transfer Question

[Anonymous]

Question regarding a potential Balance Tranfer being performed..

I had my Amex BCE with a Limit of $25,000.00, and am ending my promotional period of 0% APR so I am thinking of performing a Balance Transfer to my CSP card. 

They currently have a 2% Balance Transfer fee, with 0% APR for 14months. 

Question though is that my CSP has a smaller limit of $8,500.00, and I would be transfering a balance of around $4000.00. 

I could pay this balance down, but currently in a state of saving up for a bigger Down Payment on a Home Purchase. 

Since this will obviously not effect my OVERALL Credit Utilization %, but definately effect my CSP %, would this in anyway effect my Credit Score? 

Credit Scoring is more of a priority right now due to my soon to purchase of a Home, so want to avoid any negative effects on my Credit. 

Thanks for any advise / help!

[Anonymous]

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@Anonymous wrote:

Question regarding a potential Balance Tranfer being performed..

I had my Amex BCE with a Limit of $25,000.00, and am ending my promotional period of 0% APR so I am thinking of performing a Balance Transfer to my CSP card. 

They currently have a 2% Balance Transfer fee, with 0% APR for 14months. 

Question though is that my CSP has a smaller limit of $8,500.00, and I would be transfering a balance of around $4000.00. 

I could pay this balance down, but currently in a state of saving up for a bigger Down Payment on a Home Purchase. 

Since this will obviously not effect my OVERALL Credit Utilization %, but definately effect my CSP %, would this in anyway effect my Credit Score? 

Credit Scoring is more of a priority right now due to my soon to purchase of a Home, so want to avoid any negative effects on my Credit. 

Thanks for any advise / help!

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When I was closing on my mortgage, they made me pay down and close my two highest utilization cards. You would be better off paying them off with the down payment money and saving a little longer, because it's really all the same money anyway in the bank's eyes.

[Anonymous]

Scoring takes into account of both overall ultilization and individual cards. Transfering $4000 to a $8500 card will put it at just under 50%, and that will negatively affect your score. The score ding is not major (maybe 10 points?), but if you care deeply about points, I would suggest paying the balance down to $2500 or so, so that the BT will make the CSP at less than 30%, which is more or less okay (not the best, but not the worst)

[redbeard]

if you are not in contract yet on a home, it really doesn't matter.  You might lose a few points (not many), but you can gain those back by paying the card down a bit to get it under 30% utilization.  

Or, just transfer $2500 and then pay off the balance if you can, even if it takes a month or 2.  After a month, there should be no net score change.  For the month of the transaction?  Who knows.