High UTI on one card .... Balance Transfer.

u921333 · ‎05-17-2013

Hello, Have a question if I would see much of a score change by doing a balance transfer.

I have a ok score high 600's to mid 700's depending on CRA. Aaoa is around 1.7 years oldest account is over 10 years. Currently My UTI on all cards is at 17-18% and have total listed of 4k of debt on report out of 24k available.

Now the question is I help/handle my grandma's accounts and she has one card that im an AU on that is only a 1700 limit and is charged to 1575 from some store card consolidations we did for her making it 93% uti. I know I could just remove me as a AU but I find it easier being listed on her accounts just in case she needs to make purchases I can do it for her. I could balance transfer the 1575 to one of my cards making her card 0% and one of mine 40% would that really have any huge impacts on score?

enharu · ‎05-17-2013

@u921333 wrote:
Hello, Have a question if I would see much of a score change by doing a balance transfer.

I have a ok score high 600's to mid 700's depending on CRA. Aaoa is around 1.7 years oldest account is over 10 years. Currently My UTI on all cards is at 17-18% and have total listed of 4k of debt on report out of 24k available.

Now the question is I help/handle my grandma's accounts and she has one card that im an AU on that is only a 1700 limit and is charged to 1575 from some store card consolidations we did for her making it 93% uti. I know I could just remove me as a AU but I find it easier being listed on her accounts just in case she needs to make purchases I can do it for her. I could balance transfer the 1575 to one of my cards making her card 0% and one of mine 40% would that really have any huge impacts on score?

Well done for taking care of your grandma!

If your utilization goes up, your score will drop.

How much it'll exactly drop by really depends on other factors, such as AAoA, age of oldest account, number of tradelines, inquiries etc etc.

Generally speaking, your scores shouldn't drop too much. I am guessing that the worst case it'll drop your score by is up to 30 points. This is just my guess. It can be a lot more, or a lot less.

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ktl72455 · ‎05-17-2013

I didnt realize that being a AU on someone elses card, that you could transfer thier balance to one of your cards.

I know I could just remove me as a AU but I find it easier being listed on her accounts just in case she needs to make purchases I can do it for her. I could balance transfer the 1575 to one of my cards making her card 0% and one of mine 40%

I learn something every time I vist here!

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emptypockets · ‎05-17-2013

@ktl72455 wrote:
I didnt realize that being a AU on someone elses card, that you could transfer thier balance to one of your cards.

I could balance transfer the 1575 to one of my cards making her card 0% and one of mine 40%

I learn something every time I vist here!

I am not sure that they check that it is your account when you do a BT. Most places send checks that can be written to yourself (then depoitied and used to pay the CC you choose), or directly to the credit card you are paying off. I don't think the banks care as long as they get their money.

To the OP, I think that the damage to your score will be relatively small since you are going from 17-18% overall util (4k bal of 24k avail) to approx 23% overall Util (5575 bal on 24k avail), but 40% on that one card. It is difficult to predict Fico scores, but you will likely take a small ding for having another card with a balance, as well as the increase util on that one card. You could try to get a CLI on one of your cards before you do the BT - thus eliminating/reducing the ding to your utilization.

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boomhower · ‎05-17-2013

Having one maxed out card will be a pretty good ding on your score. I'd wager doing the balance transfer will be an overall net gain in score. Question is are you planning on applying for anything in the near future and how long will it take to pay the card down? Doing the BT will most likely incur a 3% fee. If your not going to be applying for anytime soon the score doesn't matter, save your/your grandma's money.