Should I transfer a balance?

[Onthe27thday]

I have a discover offer for 4.99 apr 0% transfer fee for 18 months.

I was thinking of transferring the below balances to my discover card.

Cap1 1020/1200 apr 17.15

Cap1 Secured 451/651 23.15

Chase 240/400 17.14 apr 21.49

If I do this, it would mean that 5 of my 8 cards would be at 0% utilization. However, it would mean that 2 of the others would be at 50-80% utilization. IDK if transferring balances would look better or make it worse.

Any advice or opinions?

[myjourney]

More info needed ....All cards with all balances and interest rates

You list 8 cards but only account for 7.....(5+2)?

Generally speaking if it saves you money then by all means go for it 

[Onthe27thday]

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@myjourney wrote:

More info needed ....All cards with all balances and interest rates

You list 8 cards but only account for 7.....(5+2)?

Generally speaking if it saves you money then by all means go for it 

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I should've explained that, sorry. I have an Amex with a 1000, carrying a small balance that I am paying in full before the 20th of this month.  I do intend to have all except one paid off by the end of 2017, but if you want my pre promo APRs, I am happy to give them.

Amex 179/1000 0 apr 1 yr

Barclays 0/1850 0 apr 1 yr

Care Credit 0/8000 - 23 apr but only charging a small amount every few months to keep active

@Anonymous 2200/7000 1600 is @ 0% from a balance transfer, apr 16.24

@discover 5000/8500 1200 is a balance transfer @ 0%, apr 17.24

Feel free to let me know if anything additional is needed.

[myjourney]

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@Onthe27thday wrote:

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@myjourney wrote:

More info needed ....All cards with all balances and interest rates

You list 8 cards but only account for 7.....(5+2)?

Generally speaking if it saves you money then by all means go for it 

---

I should've explained that, sorry. I have an Amex with a 1000, carrying a small balance that I am paying in full before the 20th of this month.  I do intend to have all except one paid off by the end of 2017, but if you want my pre promo APRs, I am happy to give them.

Amex 179/1000 0 apr 1 yr

Barclays 0/1850 0 apr 1 yr

Care Credit 0/8000 - 23 apr but only charging a small amount every few months to keep active

@Anonymous 2200/7000 1600 is @ 0% from a balance transfer, apr 16.24

@discover 5000/8500 1200 is a balance transfer @ 0%, apr 17.24

Feel free to let me know if anything additional is needed.

---

So in essence you want to transfer another $1711 to Discover for a total of $6711 + fee's?

[Onthe27thday]

Mainly because of the high interest rates. I checked a few balance transfer calculators and it seemed like it would save a little. Just trying to pay everything off faster and don't want to make the wrong move. If slow and steady is the best way, that's what I'll do.

[myjourney]

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@Onthe27thday wrote:
Mainly because of the high interest rates. I checked a few balance transfer calculators and it seemed like it would save a little. Just trying to pay everything off faster and don't want to make the wrong move. If slow and steady is the best way, that's what I'll do.

---

That's what I thought so some things you should consider 

The $1200 + 1700 will be under BT rates 

However those purchases roughly $3800 

You should be aware of this......

Credit card issuers are legally required to apply any payment amounts that exceed the minimum monthly payment first to the balances with the highest interest rate, under the Card Act of 2009. That means that portions of monthly payments you intend to put toward eliminating your debt could be applied to new purchases instead.

Meaning it will be applied to the $3800 first so plan accordingly to make sure you can pay what you've charged and both BT's off before the (2) $0% promo ends

[Onthe27thday]

Thank you for this!

[Budoka]

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@myjourney wrote:

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@Onthe27thday wrote:
Mainly because of the high interest rates. I checked a few balance transfer calculators and it seemed like it would save a little. Just trying to pay everything off faster and don't want to make the wrong move. If slow and steady is the best way, that's what I'll do.

---

That's what I thought so some things you should consider 

The $1200 + 1700 will be under BT rates 

However those purchases roughly $3800 

You should be aware of this......

Credit card issuers are legally required to apply any payment amounts that exceed the minimum monthly payment first to the balances with the highest interest rate, under the Card Act of 2009. That means that portions of monthly payments you intend to put toward eliminating your debt could be applied to new purchases instead.

Meaning it will be applied to the $3800 first so plan accordingly to make sure you can pay what you've charged and both BT's off before the (2) $0% promo ends

---

But doesn't that mean anything above the minimum payment due will be applied to the 3800 first? Why wouldn't that be a good thing? I am assuming that he won't have subsequent charges after the BT. 

Also, that would put the Discover card at just barely under 79 percent. I know FICO has no memory but how big a hit can he expect and will it spook the other lenders?

Just trying to understand this myself as well.

[SouthJamaica]

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@Onthe27thday wrote:

I have a discover offer for 4.99 apr 0% transfer fee for 18 months.

I was thinking of transferring the below balances to my discover card.

Cap1 1020/1200 apr 17.15

Cap1 Secured 451/651 23.15

Chase 240/400 17.14 apr 21.49

If I do this, it would mean that 5 of my 8 cards would be at 0% utilization. However, it would mean that 2 of the others would be at 50-80% utilization. IDK if transferring balances would look better or make it worse.

Any advice or opinions?

---

Since your Discover Card is already at 58%... no you shouldn't.

Carrying a balance on a Discover Card is a trap, and it sounds like you have already fallen into it.

[myjourney]

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@Budoka wrote:

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@myjourney wrote:

---

@Onthe27thday wrote:
Mainly because of the high interest rates. I checked a few balance transfer calculators and it seemed like it would save a little. Just trying to pay everything off faster and don't want to make the wrong move. If slow and steady is the best way, that's what I'll do.

---

That's what I thought so some things you should consider 

The $1200 + 1700 will be under BT rates 

However those purchases roughly $3800 

You should be aware of this......

Credit card issuers are legally required to apply any payment amounts that exceed the minimum monthly payment first to the balances with the highest interest rate, under the Card Act of 2009. That means that portions of monthly payments you intend to put toward eliminating your debt could be applied to new purchases instead.

Meaning it will be applied to the $3800 first so plan accordingly to make sure you can pay what you've charged and both BT's off before the (2) $0% promo ends

---

But doesn't that mean anything above the minimum payment due will be applied to the 3800 first? Why wouldn't that be a good thing? I am assuming that he won't have subsequent charges after the BT. 

Also, that would put the Discover card at just barely under 79 percent. I know FICO has no memory but how big a hit can he expect and will it spook the other lenders?

Just trying to understand this myself as well.

---

Yes it is a good thing the caveat is tho the amount paid monthly must be enough to clear all 3 balances and in order to do that successfully 

$3800 must go first ....high APR

followed by $1200 APR 17.?

followed by $1700 on 18 months 

So basically the grand total of all 3 would need to be paid in 18 month or risk paying interest

Roughly ($373.00+ Int ) month 

Spook other lenders ....who's to say maybe yes maybe no 

It's the chance you take when carrying debt 

Sometimes you just can't worry about lenders being spooked you have to do what's best for you and if it saves you money and makes you debt free

Then you go for it 

No different then crossing the street and hoping the person driving the car sees you and is not a drunk driver