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use bal xfer even though it will means high utilization ratio on the transferee card?

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Agent86
New Contributor

use bal xfer even though it will means high utilization ratio on the transferee card?

I just had to put about $2k of medical expenses on my citi card ($14.5k limit), which will accrue interest at 13.99% if I don't paid it off in the next month. Things are tight right now (wife not working during the summer months), and I won't be able to pay it off immediately. I have a promo offer on my capital one venture card ($3500 limit), to transfer a balance for a 2% fee and keep 0%APR for 12 months. No question I will save money by doing the transfer. Will this skewer my score, though, by having >50% utilization on my capital one card? My overall utilization is about 14%, and everything else is at 0% due to similar promo offers. 

Citi Platinum Dividend $34,600 line, 14.2%%
Bank of America Platinum Rewards, $85,000 line, 13.99%
Discover It $50,000 line, 20.9%
Amex Blue Cash Preferred $18,000 line, 9.99%
Capital One Venture One, $8,500 line, 20.9%
Amex Hilton Honors $25,000 line, 17.24%

Amex Delta Platinum, 20,000 line, 22.99%
Belk store card, $124 line, 15%, $0 balance on all cards
Message 1 of 4
3 REPLIES 3
mauwow0682
Frequent Contributor

Re: use bal xfer even though it will means high utilization ratio on the transferee card?

 


@Agent86 wrote:

I just had to put about $2k of medical expenses on my citi card ($14.5k limit), which will accrue interest at 13.99% if I don't paid it off in the next month. Things are tight right now (wife not working during the summer months), and I won't be able to pay it off immediately. I have a promo offer on my capital one venture card ($3500 limit), to transfer a balance for a 2% fee and keep 0%APR for 12 months. No question I will save money by doing the transfer. Will this skewer my score, though, by having >50% utilization on my capital one card? My overall utilization is about 14%, and everything else is at 0% due to similar promo offers. 

 

____________________________________________________________________________________________________________________________

 

Might affect your score a few points but nothing to worry about because you're overally utilization is still on lower side.

 

If you aren't applying for anything for a while I wouldn't stress it. Save some money. 

 


Starting Score: 620 FAKO
Current Score: FICO TU 715 (wal-mart) FICO EQ 692
Goal Score: 700


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Message 2 of 4
youngandcreditwrthy
Senior Contributor

Re: use bal xfer even though it will means high utilization ratio on the transferee card?

I have two nearly maxxed out cards. Freedom
And Citi Diamond Preferred at $5k each. I only revolve balances at 0% usually. Overall util is still low at 12%, and I still have a 700+ FICO. I also just got approved for a new Amex haha 😄 good luck !
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Message 3 of 4
FinStar
Moderator Emeritus

Re: use bal xfer even though it will means high utilization ratio on the transferee card?


@mauwow0682 wrote:

 


@Agent86 wrote:

I just had to put about $2k of medical expenses on my citi card ($14.5k limit), which will accrue interest at 13.99% if I don't paid it off in the next month. Things are tight right now (wife not working during the summer months), and I won't be able to pay it off immediately. I have a promo offer on my capital one venture card ($3500 limit), to transfer a balance for a 2% fee and keep 0%APR for 12 months. No question I will save money by doing the transfer. Will this skewer my score, though, by having >50% utilization on my capital one card? My overall utilization is about 14%, and everything else is at 0% due to similar promo offers. 

 

____________________________________________________________________________________________________________________________

 

Might affect your score a few points but nothing to worry about because you're overally utilization is still on lower side.

 

If you aren't applying for anything for a while I wouldn't stress it. Save some money. 

 


+1

 

The impact should be nominal depending on your overall profile.  However, if you are not applying for anything in the short term where utilization would be an issue, then there shouldn't be much to worry about.

Message 4 of 4
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