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Mega Contributor
LS2982
Posts: 15,436
Registered: ‎04-09-2011
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Consolidating balances to the Barclaycard

Currently I have 7 cards with balances.

 

Amazon: $624 0% ends 6/24

CareCredit: $1,037 0% ends 12/31

 

I still have a very good offer from Barclays for a BT 0% through Oct. 2014 3% fee

 

The other balances have 0% for long enough I can pay w/o getting interest other than PSECU which i'll just have to suck it up and pay them every month.

 

Would it be a good idea to take this offer and have 5 accts with balances with Barclays having a 75% util.?

 

I'm looking at it like having less cards to worry about and less with balances. Right way to look at it or just pay monthly??

 

The Amazon balance will hurt paying next month PIF. CareCredit I can hang with until end of the year just looking to get rid of it now.




Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Epic Contributor
Creditaddict
Posts: 22,066
Registered: ‎10-23-2007
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Re: Consolidating balances to the Barclaycard

I do like the consolidating of multiple payments into one as long as you don't create a new payment which I sometimes do!

But I recently consolidated a good portion of all our cards (smaller) to the New Bank of America we just got... Just waiting for the payments to clear Navy checking for Macy's and Macy's Amex and then the payment from Bank of America to clear for the Navy Cash Advance I took and it will all be finished.... I paid about 8 balances but we are now going to be up to 4 that we carry a balance on (all 0% of course AND sitting on about 75% of the cash to PIF the balances at anytime)

Financially paying the 3% to move 0% money isn't that great but we are talking just a couple grand so not a whole whole lot of money and as Suze says sometimes money is just as much mind set if not more and if you are more relaxed about it then in the end it may not actually be costing you more even though on paper it may seem so because you are more relaxed and you may be attracting more money to you vs. attracting more money issues (repairs, or something to you) depends on the whole power of energy and such that you believe or not :smileyhappy:

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Valued Contributor
SnackTrader
Posts: 1,567
Registered: ‎09-15-2012
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Re: Consolidating balances to the Barclaycard

I wouldn't balance transfer any sooner that you have to on the Carecredit. That 3% fee on $1,000 is $30 you wouldn't have to pay until December when the balance is smaller. The decision to transfer over the Amazon may be financially beneficial if its a 20+% interest card and you won't be paying it off for 6 months or so. But even if it ends up costing you a little bit more, maybe it is worth it to consolidate that one payment.

I don't know where you are at in terms of your other balances right now, but I think consolidating an interest accruing balance to a non-interest accruing balance will help you focus on your larger balances. But don't jump the gun on those that aren't gathering interest yet.

In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
Epic Contributor
Creditaddict
Posts: 22,066
Registered: ‎10-23-2007
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Re: Consolidating balances to the Barclaycard


SnackTrader wrote:
I wouldn't balance transfer any sooner that you have to on the Carecredit. That 3% fee on $1,000 is $30 you wouldn't have to pay until December when the balance is smaller. The decision to transfer over the Amazon may be financially beneficial if its a 20+% interest card and you won't be paying it off for 6 months or so. But even if it ends up costing you a little bit more, maybe it is worth it to consolidate that one payment.

I don't know where you are at in terms of your other balances right now, but I think consolidating an interest accruing balance to a non-interest accruing balance will help you focus on your larger balances. But don't jump the gun on those that aren't gathering interest yet.

Well if I gather part of the point is the Barclay offer is going on right now and although the 0% runs througha  good part of 2014, the ability to use the offer and do the BT probably is only 1 or 2 months from account opening, so while waiting another 6+ months would be better the idea is use this offer vs. look for a different offer later or possibly open a new card?

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Valued Contributor
SnackTrader
Posts: 1,567
Registered: ‎09-15-2012
0

Re: Consolidating balances to the Barclaycard

That's a good point, but my experience with my 4 creditors is that ALL of them offer 0% BT with a 3% fee. I see it on my log in screens everyday. And unless the Fed increases interest rates the banks will likely want to continue gathering that fee income and put their balance sheets to use by attracting new balances through BT. Given LS's breadth of credit available, I have a hard time believing that he won't be able to call each of them in December and inquire about the possibility of negotiating a 0% interest BT deal. He has a good chance of getting one of them to say yes at that point. And I would say that goes for anyone out there as long as interest rates stay low and that person has displayed good payment history.

In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
Mega Contributor
LS2982
Posts: 15,436
Registered: ‎04-09-2011
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Re: Consolidating balances to the Barclaycard

The BT offer ends June 4th. You can still get BT offers past the promo at 0% on certain cards?



Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Established Contributor
TimeToRecover
Posts: 658
Registered: ‎03-21-2013
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Re: Consolidating balances to the Barclaycard

ok i do not want to sound like a negative here but it sounds to me like you are just trying to shuffle debt without ever actually paying anything totally off. 

 

I think utilizing 0% is great I just did that myself but I would say hae a definite plan and a definite plan for when the balance will be paid off.  NOT just I can open another card with 0% and move it there.

 

Is there a reason you don't just want to pay off each card before the 0% runs out on each card and then only PIF after that.

 

Your util is calculated across the whole CL so it doesn't care if it is on one card or 7. 

 

I was in a loan with like 40% interest (not joking out of a 300 payment only 120 was going to principal)  so when I hit this reality I just recently paid the loan off using myCap 1 that is still in 0% (yes it was a payment not a BT).  Now I debated on this but before I did it I knew 1 my util and CS would take a hit for the 2 months it is going to take me to pay it off.  BUT I have my autopayments already set up to cap 1 that I will have the full amount paid off 2 weeks before my 0% runs out. 

 

so my question is what is your real picture, is there a valid reason fo transfer or just shuffling debt around.


Starting Score: 570 ish
Current Score:EX (694) 10/2/2014, EQ (686) 10/2/2014, TU (684) 10/2/2014 (ALL MORTGAGE PULLS)
Goal Score: 750
In My Wallet: GE Care Credit (8K) BestBuy (6K) BofA Cash Rewards Signature Visa (5K) Cap One Quicksilver (4.5K) Chase Freedom (4K) Lowes (2.8K) VS Angel Card (1300)
Mega Contributor
LS2982
Posts: 15,436
Registered: ‎04-09-2011
0

Re: Consolidating balances to the Barclaycard

Whoa whoa dude you got the wrong idea!

Im paying my cards down every month, im not opening any new accounts to shuffle debt around. My current lender Barclays sent me a sweet BT offer that IMO would help PIF other accounts not to use those cards again while extending my 0% some to ease payments for me.

I fully intend to pay my balances and not run up anything else. I would rather have 4 cards with balances instead of 7.



Silver Spade Garden Club Member - Last App 12/16/13 - Looking for a clean slate NO INQ's / Diamond Inspired!
Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014
Established Contributor
calihlove75
Posts: 791
Registered: ‎05-16-2012
0

Re: Consolidating balances to the Barclaycard


TimeToRecover wrote:

ok i do not want to sound like a negative here but it sounds to me like you are just trying to shuffle debt without ever actually paying anything totally off. 

 

I think utilizing 0% is great I just did that myself but I would say hae a definite plan and a definite plan for when the balance will be paid off.  NOT just I can open another card with 0% and move it there.

 

Is there a reason you don't just want to pay off each card before the 0% runs out on each card and then only PIF after that.

 

Your util is calculated across the whole CL so it doesn't care if it is on one card or 7. 

 

I was in a loan with like 40% interest (not joking out of a 300 payment only 120 was going to principal)  so when I hit this reality I just recently paid the loan off using myCap 1 that is still in 0% (yes it was a payment not a BT).  Now I debated on this but before I did it I knew 1 my util and CS would take a hit for the 2 months it is going to take me to pay it off.  BUT I have my autopayments already set up to cap 1 that I will have the full amount paid off 2 weeks before my 0% runs out. 

 

so my question is what is your real picture, is there a valid reason fo transfer or just shuffling debt around.


Seriously, I think wanting fewer cards to tackle to avoid interest charges is a valid reason. He already said paying the amazon off before the promotion end date will hurt him. If that is not a valid reason, I don't know what is. Sometimes (if not always), avoiding emotional stress trumps utility.

 

 LS2982- You know what is right for your situation. You have made great progress and if the transfer brings you piece of mind and keeps you on the path of becoming debt free, do it.

100% Ficos: EX 762, TU 767, EQ 762 Inquiries last 1 year/6 months: EX-0/0, TU- 0/0, EQ-1/0~ last credit card app 6/24/13- New car loan 3/8/2014
Discover IT $9500~Kohls $1000~Amex BCE $2000~ Walmart Discover $7500~NFCU Signature CashRewards $16,100~ Chase Freedom MC $6000~ Chase Amazon Visa $1900~ Cap 1/HSBC MC $2500~ Amazon Store $7000~ Fingerhut $1050
Epic Contributor
Creditaddict
Posts: 22,066
Registered: ‎10-23-2007
0

Re: Consolidating balances to the Barclaycard

I'd add that although it may only be 10-15% of score having more cards with balance vs 1 or so higher will usually effect your score more.
Additionally, regardless how small, I have had more issues getting more credit when all accounts had balances vs just a couple that I could say are 0% or daily use type cards and that's why reporting. Of course exceptions to all rules but.
Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:

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