Help! Deciding on new CC for balance transfer (Discover or AMEX)?

[asot6]

Hi everybody,

I am looking for some suggestions/opinions regarding a long awaited balance transfer I would like/need to make.

I am in my mid-20s and just graduated from University back in May, lucked out on a great internship this summer, and just landed a promising financial gig for a fortune 100 co. this past month.  

I opened my first CC with U.S. Bank when I was 18, and up until I was ~22 I had always paid off the balance in full each month...things began to add up and I've kept a pretty hefty balance on it the past few years while eating the interest.  My CL with them right now is $12.5k, and my balance at the moment is $7,300.  I asked for a $1.5k CLI last week (since that's the most you can without a HP) and still awaiting a response (trying to help the utilization before applying for new card).  The card I have from them is the Perks+.

My Equifax as of the first week of this month is 743 (I didn't order reports for the 2 others).

Now that I am in a semi-really good place (both mentally and financially), it's time for me to finally apply for another CC and do this balance transfer.  I could pay off my entire balance in full today if I wanted to, but that wouldn't leave me with much of a cushion...and I'd also like the peace of mind knowing besides the initial transfer fee, I will be able to pay my entire balance in full in ~12 months, no problem.  Not to mention having another CC will be nice.

After several hours of research, I have decided Discover and AMEX would be the best choices.  They are both at the top in terms of customer service/satisfaction, they only approve those with relatively good scores, and I like the fact it's different than a Visa...being both the processor and issuer.  

Here are my thoughts about both:

Discover:

-free fico scores (this is huge to me but I am aware they could stop this at any time)

-seems like if I include the BT in the app, there's a good chance they'll approve me for the full amount

-I use Amazon a lot, so I'd get the $75 gift card and also the Cashback Bonus would be nice

-if I ever went overseas, looks like this would be the ideal card to have

American Express:

-I am a loyal Costco member, so the AMEX-Costco card would be cool (although the EveryDay CC is one I'd consider too)

-they are one of the few who still will backdate (although I'm not sure?)

-the prestige surrounding them alone makes it highly appealing

So, it seems for me the Discover IT would be the best fit at the moment...I could always just have both down the road right?!  However, if I went the AMEX route, I would also consider a store Walmart card to take advantage of the free fico that way.  Ahh, decisions, decisions...

[coldnmn]

Honestly you answered your own question. In my opinion you could get both. You seem to have the right ideas in credit. Good Luck getting your CLI. If approved it's a good idea to wait until it reports for lower APR and higher CL on new cards.

edit:  Also if you get AMEX any future AMEX backdates that's a plus.

[Anonymous]

If you're looking for a credit card for the sole purpose of transferring a pretty hefty balance, why don't you save yourself the $200+ in BT fee and check out the Chase Slate? Transfers made within the first 60 days have no fee, and you've a promotional 15-month 0% APR on Purhcases & BT's. There aren't really any perks to the Slate beyond the promotional period, but like I said, save yourself the 200, and you can just sock drawer the card later on to help with your utilization. But if that 200 is just pocket change to you, and you're really drawn by the rewards programs that Discover and AMEX have to offer, then by all means, you should apply for 'em. Your stats seem pretty solid. Best of luck to you! 

[asot6]

I did see that with the Slate...but yeah, paying around $225 for the inital BT to me would be worth it for the added benefits, at least with the Discover.  I'm currently paying $15 a month on here for the FICO score so I'd immediately cancel this.  Then, factoring in the potential Amazon gift card (and Cashback benefits), that $225 one time fee really makes sense.  

I did look into the Chase Freedom a little, and honestly I'd consider that before the Slate...but I had a Chase account (and CC) before which I opened in 2006 but this was long before I knew anything about credit and such.  I guess since I went a period of time without using it, it ended up closing in 2008.  It'd be nice if Chase backdated, then the Freedom would be a nice option...

I just hope if I do go with Discover, that not only will they approve me for the full amount of the BT (~$7,500), but that they don't shut this FICO feature down anytime soon.  That really is the main perk that is driving me towards them.  

Also, does anybody know the difference between applying for the Discover IT through their website vs. Amazon?  On their website, I did the instant offer (doesn't affect credit score) and the terms that came up was 14 months 0%apr for BT and purchases.  Whereas on Amazon, they have two options...the same 14 months for both, or 18 months 0% on BT and 6 months for purchases (which is what I'd want just to be safe).  I believe going through Amazon is the only way I'd get the gift card though.

[coldnmn]

I wouldn't worry about the free Fico score going away anytime soon. More Credit card company's are doing it. I have see on the news a few times that congress wants to make it mandatory to give scores and reports to the consumer that lenders use. I'm sure lobbyists will take that off the table.