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New Member
Justwokeup
Posts: 9
Registered: ‎03-04-2013
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Re: Large Purchase: Credit Cards vs. Personal Loans?

Hi guys just joined.  I'm finding so much useful information here it kinda makes me upset it took me until now to start looking for it.  Well I guess I've been looking, just in the wrong places.  

 

I want to do a balance transfer soon, would this Northrop Grumman Federal Credit Union. offer be better than doing it to a credit card?  Last time I joined a credit union was about 6 years ago but stopped using cause it was very iconveniently located.  Would I apply if out of state?

Moderator
09Lexie
Posts: 26,027
Registered: ‎09-13-2012
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Re: Large Purchase: Credit Cards vs. Personal Loans?


Justwokeup wrote:

Hi guys just joined.  I'm finding so much useful information here it kinda makes me upset it took me until now to start looking for it.  Well I guess I've been looking, just in the wrong places.  

 

I want to do a balance transfer soon, would this Northrop Grumman Federal Credit Union. offer be better than doing it to a credit card?  Last time I joined a credit union was about 6 years ago but stopped using cause it was very iconveniently located.  Would I apply if out of state?


Welcome to the forum! 

Before I can answer your question, need a little bit more information. What's your credit profile look like? FICOs? Baddies? INQ'S ? How much are you thinking a bout transferring? I assume you are eligible to join? Do you know anything about this CU? 

 

Finally, not sure what you mean by....offer be better than doing it to a credit card? Are you thinking about a personal loan? LOC?

New Member
Justwokeup
Posts: 9
Registered: ‎03-04-2013
0

Re: Large Purchase: Credit Cards vs. Personal Loans?

Thanks for the prompt response and the welcome!

 

Here's my intro thread that provides some details.  If there's anything I'm missing, just let me know.

Intro Thread

 

 

I couldn't find a way to quote but this was posted by user kevinjjc below.  Would that route be better than say applying for a Discover IT card or AmexBC?  I'm trying to transfer $5000.  (By the way sorry to the original poster for riding along on this)

 

 

Also check out Northrop Grumman Federal Credit Union.

 

They currently have a great BT offer:

  • 4.99% fixed APR for life!
  • No balance transfer fee.

They also have a good cashback rewards credit card:

  • 1.5% cashback on everything.
  • No foreign transaction fee.
  • It's a MasterCard!

https://www.ngfcu.us/loans/mastercard.aspx

 

 

NGFCU.png

Moderator
09Lexie
Posts: 26,027
Registered: ‎09-13-2012
0

Re: Large Purchase: Credit Cards vs. Personal Loans?


Justwokeup wrote:

Thanks for the prompt response and the welcome!

 

Here's my intro thread that provides some details.  If there's anything I'm missing, just let me know.

Intro Thread

 

 

I couldn't find a way to quote but this was posted by user kevinjjc below.  Would that route be better than say applying for a Discover IT card or AmexBC?  I'm trying to transfer $5000.  (By the way sorry to the original poster for riding along on this)

 

 

Also check out Northrop Grumman Federal Credit Union.

 

They currently have a great BT offer:

  • 4.99% fixed APR for life!
  • No balance transfer fee.

They also have a good cashback rewards credit card:

  • 1.5% cashback on everything.
  • No foreign transaction fee.
  • It's a MasterCard!

https://www.ngfcu.us/loans/mastercard.aspx

 

 

NGFCU.png


Wow! That intro thread (color) was hard to read :smileysad: but I think I got the jist of what you are saying. 

 

Baddies

1 Paid CA - roughly 5 yrs

 

Inq

1

 

Util

55%

 

The score you listed, is that a true FICO? Your score is high enough but do you have any CC with CL $5k or higher?  As far as this deal,  does this CU "work" for you? I mean you mentioned before that your last CU was not a match. 

 

 

New Member
Justwokeup
Posts: 9
Registered: ‎03-04-2013
0

Re: Large Purchase: Credit Cards vs. Personal Loans?

Sorry I was trying to make it easier, other forums people don't like reading long posts. I can change it. 

 

I have the scorewatch and that's the equifax fico score they're showing.  Not really sure what you mean by true fico score.  I have one card at $5500 and the rest are smaller, not sure if I should put all that over to a 0% apr or that deal I just quoted or spread out so they're all at less than 50%. 

The last credit union was not a match because I was doing 100% of my financials through them like I was advised which was not a very smart idea.  I know have one bank for everyday use and has many atms near key areas around town and one where I do all my bill pays.  I would only use that credit card for the balance transfer so I wouldn't need an actual branch. 

 

Should I start a new thread to not upset the OP?

Moderator
09Lexie
Posts: 26,027
Registered: ‎09-13-2012
0

Re: Large Purchase: Credit Cards vs. Personal Loans?


Justwokeup wrote:

Sorry I was trying to make it easier, other forums people don't like reading long posts. I can change it. 

 

I have the scorewatch and that's the equifax fico score they're showing.  Not really sure what you mean by true fico score.  I have one card at $5500 and the rest are smaller, not sure if I should put all that over to a 0% apr or that deal I just quoted or spread out so they're all at less than 50%. 

The last credit union was not a match because I was doing 100% of my financials through them like I was advised which was not a very smart idea.  I know have one bank for everyday use and has many atms near key areas around town and one where I do all my bill pays.  I would only use that credit card for the balance transfer so I wouldn't need an actual branch. 

 

Should I start a new thread to not upset the OP?


The rate sounds good but since I don't know anything about that CU- I would not know if they would approve the limit you need;  multiple credit inq for membership and credit product? 

 

Hopefully someone has more info on this CU. 

 

and, yes, you might want to start your own post. :smileyfrustrated:

 

Sorry I could not be of more assistance. 

Valued Contributor
thom02099
Posts: 1,326
Registered: ‎08-30-2011
0

Re: Large Purchase: Credit Cards vs. Personal Loans?


greenpang wrote:
To finance a large purchase ($20K), I previously believed a personal loan would be necessary. However, now having learned more about credit, I'm starting to think that using credit cards may be a better option.

 

Let's assume I want to make the $20K purchase in July 2013 (with increased scores and CLs) and pay it off over the next 48 months. I could likely get a loan with a 3-4% APR.

 

Or... I could do something along these lines:

7/2013: Open new credit lines with introductory 0% APR for 12 months: say, Citi ThankYou Preferred and Citi Dividend. Hope for 10K CLs on each; if short, DH can open them too. Make the $20K purchase, split up between the new Citi cards. Pay off 1/4 of the $20K balance over the next year, leaving $15K by the end of the intro 0% APR period.

7/2014: Open Chase Slate (DH open another Slate if CL <$15K). Transfer $15K balance to Slate(s) and continue to pay over the 15-month 0% APR period, leaving $8750 when it expires in 10/2015.

10/2015: Open Citi Diamond Preferred. Transfer $8750 balance to Diamond and pay that off completely over the 18-month 0% APR period.

 

Provided Chase is still offering the 0% BT fee in 7/2014, that means the only financing fee I'm paying is the BT fee for transferring the $8750 to Citi Diamond Preferred: 3% fee for a grand total of $262.50 cost of financing $20K over 4 years!

 

If I took out a personal loan for $20K with a 3.5% APR for 48 months, I'd pay a total of $1750 in financing charges. So the credit card BT plan seems like a better option.

 

Am I missing something? Is it reasonable to plan to self-finance a large purchase with the intention of opening new BT cards until it is paid off? If so, why ever choose a personal loan over this method?



In a perfect world, this plan might work.  However...

 

There are jjust too many outside, unforeseen variables that could make this plan implode and leave you in a very bad place.  You're going under the assumption that approvals will be coming your way.  Maybe.  Maybe not.  Your scores will take a hit.  That's a given.  How much, depends on the CRA. 

 

You're also guessing that the offerings today will be around tomorrow.  Again maybe.  Maybe not.  There could be better offers.  Or not. 

 

You could see an issuer LOWERING your credit limit, if they get nervous about all the additional credit and the higher utilization.  That would also blow your plan out of the water, lower your score for potential new credit, and again implode your plan. 

 

As others have pointed out, the loan is the better/safer way to go.  You have fixed payments at a fixed interest rate, and you certainly are NOT locked in to only paying the monthly payment, you can pay more if you wish and pay off the loan early, thus saving some of the interest.  With EVERY ONE of my loans, I always pay more than the monthly payment, whether it's just rounding up to the next $50 or so, or just a few dollars.  ANY sort of additional payment is beneficial. 

AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Wells Fargo Propel 365 $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K // Home Depot $9.7K / Lowes $10K

EX = 768 EQ = 828 TU = 834 - June/2014
Valued Contributor
bribro
Posts: 1,367
Registered: ‎04-20-2012
0

Re: Large Purchase: Credit Cards vs. Personal Loans?

I didn't bother to read through this whole thread, so pardon me if my post is irrelevant:

 

My girlfriend has been revolving ~$20k (tuition payments) interest fee by BTing between cards for a few years now. She can pay them off in full, but would rather keep the cash and get the paltry 1% in interest. Her credit score is great, and she hasn't had any trouble (yet) getting approved for new cards with $10k+ limits, but her strategy is leaving a wake of unused and now useless credit cards (think, Chase Slate). I wouldn't do this unless you can pay the whole thing off in cash at a moment's notice (i.e. when you no longer get approved for new cards).

TU FICO: 800 (2/1/14) | CK Score: 802 (2/1/14) | CS Score: 805 (2/1/14)

J.P. Morgan Palladium ($250k) | AmEx Platinum (NPSL) | AmEx SPG Personal/Business ($50k/$50k) | Citi Executive AAdvantage WEMC ($50k) | Citi Dividend WEMC ($50k) | Chase Sapphire Preferred VS ($50k) | Chase Ink Bold WEMC ($50k Flex) | Chase Ink Plus WEMC ($25k) | Chase Freedom VS ($25k) | Chase Freedom WMC ($25k) | Chase MileagePlus Explorer ($25k) | Chase Southwest RR Plus Business/Personal ($15k/$15k) | Barclays US Airways ($25k) | Barclays Hawaiian Airlines ($25k) | BofA Alaska Airlines ($10k) | Lexus Financial Services ($30k) | Mercedes-Benz Financial Services ($50k)
Established Member
thirst305
Posts: 40
Registered: ‎03-03-2013
0

Re: Large Purchase: Credit Cards vs. Personal Loans?

Is anyone eligible to join northrop grumman cu?

Ch7 BK discharged 3/2009
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Amazon store (8/12): 7,000 Walmart store (9/12): 3,600 Gap (3/13): 250 Chevron (3/13): 950
Partners (9/12): 13,000 CapOnex2 (1/10): 7,500x2 Discover IT (3/13): 4,000

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