06-27-2013 05:10 AM - edited 06-27-2013 01:11 PM
First, let me say that I am asking for advice, not judgement. I have several open credit cards and all are paid off. My Discover card, however, has a $1500 balance with a low interest rate, good cash back bonuses, etc. and will not be paid off for several months. In attempt to boost my score a few points, I am thinking about transferring the $1500 balance to another one of my cards (no balance transfer fee, same APR as purchases) just before Discover reports and then transferring it back onto Discover before the other card reports. I have a couple of weeks in between when the two report and have figured out the reporting dates, etc. I am well aware that this is not a long term fix, only a short term trick. Will this backfire somehow on my credit report? I don't see how unless they report balance transfers. I know if I zero out/ pay down to less than 9% my Discover account that my score will shoot up several points and I need those several points ASAP in order to do a certain mortgage program. Thank you for the advice and again, I don't need a lecture on being financially stable, etc... I am a teacher, do not get paid in the summer & paying off this card is simply not at option at the time. Thanks
06-29-2013 12:22 AM
This move will not affect your overall credit utilization, it would help your utilzdation on that account to state the obvious. That said the FICO simulator may suggest how to transfer the balance and to which account trry using the pay down debt scenario. With your stated long term gaol of paying down the debt and if by doing the transfer it would save you money I do not see a problem with it.
06-29-2013 08:36 AM