Balance transfers...??

[jdirilo]

Again, I am still new to the credit game, but I don't understand fully how balance transfers work. From what I understand, you can transfer a balance from a higher interest rate card, to one with a lower interest rate? Is that better for utilization purposes, or solely for saving money on interest? Since I got that nice CLI from NFCU, I am wondering if I should transfer my balances from Cap one to the NFCU card and just keep paying on that card, and sock drawering the cap one cards. If I am misunderstanding any of this, please clarify! Thanks.

[SnackTrader]

It is simply to save on interest. For scoring purposes, your best bet is to keep the lowest amount of utilization on the card as possible. In that sense, you should never pay interest.

What are your balances? And how long do you anticipate it taking you to pay them off?

[jdirilo]

So I have three cards total:$100/$201 cap one, $300/$750 cap one and $340/$2500 nfcu. Nfcu is my lowest interest rate also. They can all be paid off within two months at the latest, possibly sooner. I am starting a new Job so my paycheck will be in three weeks instead of two.
What would be the best route to take when I make the payments? Should I pay off one completely and do payments on the others? Or make like $100 payments to each, which would pay off the $201 cap one card.

[SnackTrader]

With such small balances and such a quick time until they are all paid down, I wouldn't even bother with a balance transfer. Pay off the highest interest rate first to save yourself money, and try to avoid carrying balances in the future.

[jdirilo]

Great advice. thank you!