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New to Balance Transfers

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aurelie00
Regular Contributor

New to Balance Transfers

I was approved for a CL$3000 visa with my credit union with 8% interest.  I have 2 credit cards with a combined balance of about $2700 and interest rates in the mid-20's. 

 

But I have a couple of questions before I make any transfers. 

 

1.   My credit cards that I want to transfer balances from are Discover and Capital one.  Are they going to see this as a balance transfer and will my relationship for future CLI be harmed?

 

2.  I will be close to the max on this card after I transfer the 2 balances, but will have zero balance on the others...obviously.  How will having the one close the the max affect my score? 

 

3.  My overall utilization is:

CU Visa:  $0/$3000 - 8% APR

Discover:  $2200/$2750 24.9% APR

Cap1:  $500/$2000  24.9% APR

DFS:  $350/$2500 (paying off next week)  22.49% APR

 

I feel like it's definitely the right move because of the interest rate (overall $ savings) and the consolidation...but I'm just second guessing myself and would like a little confirmation from the professionals. 

 

Thanks!


Starting Score: 524
Current Score: 715
Goal Score: 720


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Message 1 of 6
5 REPLIES 5
Creditaddict
Legendary Contributor

Re: New to Balance Transfers


@aurelie00 wrote:

I was approved for a CL$3000 visa with my credit union with 8% interest.  I have 2 credit cards with a combined balance of about $2700 and interest rates in the mid-20's. 

 

But I have a couple of questions before I make any transfers. 

 

1.   My credit cards that I want to transfer balances from are Discover and Capital one.  Are they going to see this as a balance transfer and will my relationship for future CLI be harmed?

~Who cares about them if you are saving tons of money... but no, if anything this will help your relationship because you now look like you can handle more credit!

 

2.  I will be close to the max on this card after I transfer the 2 balances, but will have zero balance on the others...obviously.  How will having the one close the the max affect my score? 

~ You actually might see a score increase because you are bring 4 balances to 1, but again the idea is save money and pay debt off faster so any score dings for a maxed out account will go away as you pay it down and the money you pay monthly will go further since your interest rate is cut in half if not more!

 

3.  My overall utilization is:

CU Visa:  $0/$3000 - 8% APR

Discover:  $2200/$2750 24.9% APR

Cap1:  $500/$2000  24.9% APR

DFS:  $350/$2500 (paying off next week)  22.49% APR

 

I feel like it's definitely the right move because of the interest rate (overall $ savings) and the consolidation...but I'm just second guessing myself and would like a little confirmation from the professionals. 

 

Thanks!


Do it now Smiley Happy

Message 2 of 6
aurelie00
Regular Contributor

Re: New to Balance Transfers

Great advice!  Thank you!


Starting Score: 524
Current Score: 715
Goal Score: 720


Take the myFICO Fitness Challenge


Message 3 of 6
takeshi74
Senior Contributor

Re: New to Balance Transfers

Having a maxxed out card can be a problem if you leave it maxxed out but as you pay it down the negative impact from maxxing it out will go away.

Message 4 of 6
fishbjc
Senior Contributor

Re: New to Balance Transfers

Cash in my pocket is always a GREAT thing!  Does your CU offer any 0% balance transfers?  Call and ask them first!

Message 5 of 6
aurelie00
Regular Contributor

Re: New to Balance Transfers

It's not 0% interest on that balance that I transfer, but there is no fee to transfer.


Starting Score: 524
Current Score: 715
Goal Score: 720


Take the myFICO Fitness Challenge


Message 6 of 6
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