Max out a card or spread balance across several accounts

[cmthomas06]

Hello, I have 3 credit cards and each is holding a balance. The highest balance is on the card with the highest interest rate because it also has the highest limit. I also have a card that has 0% interest until december 2013. I was wondering if I should do a balance transfer from the higher interest card to the zero interest. It makes sense logically to do so; however, if I do then the zero interest card will be nearly maxed out. Is it better for my score to spread out my debts or put it all on one card? I dont plan on applying for any credit/loan for several more years. 

[Revelate]

---

@cmthomas06 wrote:

Hello, I have 3 credit cards and each is holding a balance. The highest balance is on the card with the highest interest rate because it also has the highest limit. I also have a card that has 0% interest until december 2013. I was wondering if I should do a balance transfer from the higher interest card to the zero interest. It makes sense logically to do so; however, if I do then the zero interest card will be nearly maxed out. Is it better for my score to spread out my debts or put it all on one card? I dont plan on applying for any credit/loan for several more years. 

---

Then do what makes financial sense: namely, putting as much of your debt onto that 0% APR card as possible. 

Utilization really only matters when a lender pulls your report/FICO score; beyond that it's mostly ignorable unless you've maxxed everything and don't seem to have the ability to repay (as judged by a lender).  In this case a BT is utilization neutral from any lender's perspective, and they may well applaud you for doing it.  Smart financial customers tend to pay back their debts...

[Anonymous]

---

@Revelate wrote:

---

@cmthomas06 wrote:

Hello, I have 3 credit cards and each is holding a balance. The highest balance is on the card with the highest interest rate because it also has the highest limit. I also have a card that has 0% interest until december 2013. I was wondering if I should do a balance transfer from the higher interest card to the zero interest. It makes sense logically to do so; however, if I do then the zero interest card will be nearly maxed out. Is it better for my score to spread out my debts or put it all on one card? I dont plan on applying for any credit/loan for several more years. 

---

Then do what makes financial sense: namely, putting as much of your debt onto that 0% APR card as possible. 

Utilization really only matters when a lender pulls your report/FICO score; beyond that it's mostly ignorable unless you've maxxed everything and don't seem to have the ability to repay (as judged by a lender).  In this case a BT is utilization neutral from any lender's perspective, and they may well applaud you for doing it.  Smart financial customers tend to pay back their debts...

---

I have to agree with Relevate's post.  Sometimes doing what financially makes sense is more important than what makes FICO sense.

[webhopper]

I agree with relevates post. I recently did a BT to my discover card so that I could carry a 4k balance for a few months with no interest. It does effect my score, but I won't be applying for anything until all balances are 0 so it really doesn't effect me. If anything it may entice discover to give me a CLI in the future so that they can make more money off me.

[Anonymous]

It doesnt really matter if you're not applying for anything for awhile. I run up my rewards card to almost max monthly just to get money back. I PIF every month, though. I carry a few small balances but once I go to apply for new cards next year or the year after im going to have a 0% Uti before applying.

[cmthomas06]

Thanks for the advice guys! I really appreciate it  

[JusdoNit]

---

@webhopper wrote:
I agree with relevates post. I recently did a BT to my discover card so that I could carry a 4k balance for a few months with no interest. It does effect my score, but I won't be applying for anything until all balances are 0 so it really doesn't effect me. If anything it may entice discover to give me a CLI in the future so that they can make more money off me.

---

How did it affect your score?  I am in escrow and looking to do the same thing, but I don't want to hurt my score, as they will pull once more in a couple of weeks for funding. 

[skyisthelimit]

Max out a card = Your FICO will drop.  If you are not needing your score right now, then do it (if your saving money).  Once that card goes to a decent UTI then your score will improve.  90% UTI on a card WILL affect your score more then spliting it 45%/45% between two cards.  Also if your looking for a CLI in the next few months, they probably wont grant it to you....GL on your adventure, and congrats on the 0%!

[skyisthelimit]

jusdoNit - I hope my post helps.  90% + UTI dings your credit report. Rule of thumb for me is keep every card under 50% (well is now, live and learn!)

[Anonymous]

I would be concerned with the creditor closing the account or chasing your limit due to 90% UTI on their card.