Credit Card Center Advertiser Disclosure†
03-04-2013 06:25 PM
Places offer 0% balance transfers but will only approve you if you have low utilization. Can somebody explain to me how one transfers a balance if they're not utilizing their cards? These 0% BT offers are sort of baffling me right now.
So your UT is 2%. You get approved for the most awesome card with 0% BT for 18 months because you have low util. Great.
Now let's say it's 52% and you're wanting a nice low rate. You seem like the perfect candidate. BEEEP...denied for high utilization.
03-04-2013 06:34 PM - edited 03-04-2013 06:37 PM
I would assume this is because banks don't necessarily want to be a life raft.
I recently took advantage of a 15 month offer. After applying and approval, I purchased a new riding mower and new dress clothes for my wife on another card, then BT to the new account. Fortunately, we could pay cash for these np, but with this method, we enjoy the rewards via the online rewards mall and the 0% for 15 months.
03-04-2013 06:47 PM
I don't think it is exclusive to low utilization. I have seen plenty of examples in real life from family members with 50% or more in utilization getting approved for great BT offers. Most recently, a family member with approximately 42% (7000ish/17000ish) on a card BT'd to a Chase Slate for 0% for 15 months and then 13.99% after that. Original approval was only for $4500, but a quick recon phone call got the limit up to $8,000. This family member had NO inquiries on any report (according to them), no lates ever, only 2 credit cards (the second is a small store card, maybe $2,000 balance). FICO is likely near or above 800, even with the high utilization.
As always, YMMV - but I agree with above poster. Banks try not to be a life raft, but are usually more than willing to give you a chance if there is debt involved that appears manageable. I think active credit-seeking behavior (lots of INQs and new accounts) reduces the chance of good BT offers. Unfortunately for the members of this forum, that means our behavior may not be well rewarded in the BT world.
03-04-2013 07:11 PM
03-04-2013 09:23 PM
Might also consider this:
Say you have $100,000 in total credit lines....
And your util is in line at a nice 9%.
Say you owe that 9% on a variety of store cards at 23.99%+. You have $9,000 of cc debt at a high rate, and your util is still low..
This will permit approval.
$9000 is a good amount to bt. This is why having high limits is so important! Consequently, it becomes more difficult to reduce util the more credit you have.
+1 Exactly! This is the optimum type of situation that the banks are looking at/for, and a good explanation why high limits are important.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.