Balance Transfer Utilization

Anonymous · ‎10-23-2015

Ok, im new to the forums and this is my very first post. I have been following many threads closely and have a few questions.

I currently have a chase freedom card with near 100% utilization ($3,000)19% rate. I also have a best buy card with $600 balance (0 intrest) and BOA with a balance of $300 23%. My Cap 1 has an open limit of $6500 18% rate (recently reduced from 22%). would it be a wise decision to do a balance transfer to Cap 1 inorder to clear all my cards and pay that one balance off as I can? I figured that would lower my total utilization across the board. Im currently trying to rebuild my credit the most efficent way possible.

Thanks for all help and responses.

Anonymous · ‎10-23-2015

I'd rather apply for a card that will give you a 0 % balance transfer for a while. My Amex everyday gave me 0% for a year.

Anonymous · ‎10-23-2015

@Anonymous wrote:
Ok, im new to the forums and this is my very first post. I have been following many threads closely and have a few questions.

I currently have a chase freedom card with near 100% utilization ($3,000)19% rate. I also have a best buy card with $600 balance (0 intrest) and BOA with a balance of $300 23%. My Cap 1 has an open limit of $6500 18% rate (recently reduced from 22%). would it be a wise decision to do a balance transfer to Cap 1 inorder to clear all my cards and pay that one balance off as I can? I figured that would lower my total utilization across the board. Im currently trying to rebuild my credit the most efficent way possible.

Thanks for all help and responses.

Well, considering you'll most likely be paying a 3% transfer fee, it would not save you any money. If you have an immediate need for a score bump, because of an upcoming mortgage or auto loan app, then it would make sense. The goal is to get your balances down to less than 10% on one card - it really does not matter what path you take to get there, the end score result is going to be exactly the same, all other things being equal. Just pay the lowest balance first and snowball it.

Anonymous · ‎10-24-2015

Thanks,

The balance transfer has 0% fee for now. I do understand what your saying and thought about tackling the lowest balance first and continuing on. I didnt want to apply for any other cards right now because im going for an auto loan next month.

Anonymous · ‎10-24-2015

Transferring the balances from multiple cards to one card will reduce your utilization percentage for those cards which will get you under the 80% on the Chase card that FICO considers maxed but it will not reduce your overall utilization. You may see a small increase but I would'nt think it would be that much after the transfers show on the other card.