Reply
Regular Contributor
Johnny_Favorite
Posts: 266
Registered: ‎09-05-2012
0

Balance Transfers and Avoiding Issues

I know I've read stories of people who played Balance Transfer Shell Game and got their cards reduced or straight up shut down. My question is, what is a good rule of thumb when using a balance transfer? Once a year? Every 6 months? I'm going to ask a few other dumb questions/scenarios to make sure I never make a dumb decision.

 

If you apply for one card with a $3000 balance and run it up to $1000 and then subsequently get approved for a $10,000 card the next month, is it bad to transfer the balance to the higher card for utilization purposes? No, I haven't done this, I am just trying to figure out what banks like/don't like.

 

Say you have low balances on 10 cards - $100 bucks per card. You were going to pay them off but you decide to BT them to a card with a high limit. Bad idea to do this? Does it look like you're a lame person who can't pay a low bill?

 

Thanks in advance. If anybody else has any dumb questions, ask them here.

 

 




Senior Contributor
john398
Posts: 3,517
Registered: ‎01-19-2009
0

Re: Balance Transfers and Avoiding Issues


Johnny_Favorite wrote:

I know I've read stories of people who played Balance Transfer Shell Game and got their cards reduced or straight up shut down. My question is, what is a good rule of thumb when using a balance transfer? Once a year? Every 6 months? I'm going to ask a few other dumb questions/scenarios to make sure I never make a dumb decision.

 

If you apply for one card with a $3000 balance and run it up to $1000 and then subsequently get approved for a $10,000 card the next month, is it bad to transfer the balance to the higher card for utilization purposes? No, I haven't done this, I am just trying to figure out what banks like/don't like.

 

Say you have low balances on 10 cards - $100 bucks per card. You were going to pay them off but you decide to BT them to a card with a high limit. Bad idea to do this? Does it look like you're a lame person who can't pay a low bill?

 

Thanks in advance. If anybody else has any dumb questions, ask them here.

 

 


I would not say that is bad, because the 10k card with 1k ballance transfer would only be 10% util on that one card but 33% on the 3k card

Established Contributor
FutureBillionaire
Posts: 642
Registered: ‎12-12-2012
0

Re: Balance Transfers and Avoiding Issues

I've done balance transfers on 2 of my cards.  I only transfer from one card with a large balance that I need to pay off. I have transferred to two other cards that have had great offers.  I take advantage of the offers as they come and I haven't had any issues.  I think utilization probably plays a big part in them closing cards and cutting limits.

Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward,
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+