04-06-2009 01:24 PM
Husband and I are under contract for a new construction house and should close on July 29th. We have already been preapproved and credit has been pulled. Husbands current score is around 680 and mine is around 670. High enough for FHA which we have applied for. Now to the question....
I have a balance of about $4000 on a BofA card with 0% interest until the end of this month (0% interest since July 2007). The normal APR is15% on BofA I have the option of transfering the balance to Discover at a 5% rate with a 4% transfer fee. This transfer would pretty much max my Discover card out but leave a 0 balance on BofA. I'm concerned if I do this transfer that it may affect decrease my score before closing. I'm not sure if LO will pull credit again before closing (we have a collection account that will be dropping off right before closing) and LO may need to pull (not sure, he did not mention that he would have to).
Any suggestions? Is it even cost effective to do the transfer? Would my score change if I do the transfer?
04-06-2009 01:39 PM
Not sure on what you should do. I suggest just leaving it.
I am sure that your credit will be pulled again before you close in July. They will want to make sure that everything is still solid.
04-06-2009 03:52 PM
I would also suggest that you leave things as they are until you finally complete settlement.
Maxing out that Discover Card will surely be a score killer and cause you some problems.
Recheck the offer from Discover. What is the time period for the 5% rate?
After your zero rate expires, call BOA and request a APR reduction.
04-06-2009 04:57 PM
04-06-2009 05:55 PM - edited 04-06-2009 05:56 PM
The balance transfer option with Discover is only good until 5/09 But they always give me sometype of offer. I'm sure another offer will be there after we close (we at the end of July).
I had a feeling it would be best to leave it where it is but I just wanted to get some opinions. Thanks for all the suggestions!
I am working my way through my credit card balances. I've stopped using them and am paying them aggressively (500 a month). I should be out of CC debt by the end of the year (keeping my fingers crossed).
Good idea on calling BofA to see about APR reduction. I will do that this month. Thanks!
04-07-2009 03:58 AM
04-07-2009 05:00 AM
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.