Balance Transfers, Debt & Scores

[Total80sKid]

I was finally able to get a CC that had a high enough limit to do some BT's.

I was about to transfer my entire debt, roughly $5600.

Now that my other cards will be showing a $0 balance, will my score rise at all even though I will still be in debt the same amount?

I know they look at overall UTI and individual UTI for each account.

If i were to recieve a credit score boost, around how many points might be possible?

All of my cards were rouhgly 80%-90% maxed.

[pipeguy]

You'll see a bounce up and down depending on when and what reports as far as total debt. In the end the score should be pretty close to the same after everything cycles through and reports with the exception of perhaps a few points rise based on one card reporting a 50/60 percent utility with the rest showing zero. The key here, both for scoring and for long term credit health is to maintain those other cards at $0 reporting and not run them back up. As you pay off the BT in "steps" you'll see your score increase as long as your over all revolving debt continues to decrease. 

[Total80sKid]

@pipeguy

Thank you!

[SouthJamaica]

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@Total80sKid wrote:

I was finally able to get a CC that had a high enough limit to do some BT's.

I was about to transfer my entire debt, roughly $5600.

Now that my other cards will be showing a $0 balance, will my score rise at all even though I will still be in debt the same amount?

I know they look at overall UTI and individual UTI for each account.

If i were to recieve a credit score boost, around how many points might be possible?

All of my cards were rouhgly 80%-90% maxed.

---

Yes your scores will rise.

But to advise you on how to get the biggest score increase, I would need to know the credit limit on the card to which you are intending to do the transfers and I would need to know the credit limits and balances on the other cards.

[Total80sKid]

Hi @SouthJamaica

I put roughly $6300 on a $10,500 limit card.

These are the cards I had and their limits:

Target: 1200/2500
Amazon: 1600/4000
Cap1: 775/850
Cap1: 400/500
Credit1: 450/700
Chase Freedom: 400/500
Chase FU: 500/2000
Merrick: 400/600

That's roughly where I'm at.

Of course my fico scores just took a big hit after the new accts hit along with the new $6k balance on my $10.5k card.

So now, until the balances all update to $0, it looks like I'm in twice as much debt.

Appreciate your help!

[DaveInAZ]

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@Total80sKid wrote:
@Anonymous @SouthJamaica

I put roughly $6300 on a $10,500 limit card.- 60% util

These are the cards I had and their limits:

Target: 1200/2500 - 48% util
Amazon: 1600/4000 - 37.5%
Cap1: 775/850 - 91%
Cap1: 400/500 - 80%
Credit1: 450/700 - 64%
Chase Freedom: 400/500 - 80%
Chase FU: 500/2000 - 25%
Merrick: 400/600 - 67%

That's roughly where I'm at.

Of course my fico scores just took a big hit after the new accts hit along with the new $6k balance on my $10.5k card.

So now, until the balances all update to $0, it looks like I'm in twice as much debt.

Appreciate your help!

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In my personal experience over 50% utilization on any single CC torpedos your credit score. I did a BT a couple years ago that put the card at 75% and it tanked my score 22 points. Any single card util over 75% is a bigger torpedo. So, you had 3 out of 8 CCs reporting over 75%, and 5 of 8 reporting over 50%. You score should improve with just your new card at 60% and all others at 0%, but not as big an improvement if that new card was under 50%.

But, in my opinion your personal financial situation is more important than chasing a better credit score. You had to have been wasting a lot of money on high CC interest carrying those kind of balances. Is your new card a 0% BT for 12 months or so? If so, then use the $$$ you're saving on CC interest to PIF those older cards when you use them, and to get that new card down under 50% util asap. You don't mention your income, but those kind of balances suggest you are spending more than what is appropriate for your income. Tighten your belt and don't spend a nickle you don't absolutely have to spend, and get those CC balances under control.

Good personal finance management almost always leads to the best possible credit score.

[Total80sKid]

Thank you, Dave!

The BT is 4.99 apr for 12 months.

Most of my other cards were 23.99-25.99%

I was living beyond my means, but havent been for months. Those maxed out cards had been that way for a couple of years.

I wonder how long it will take for all of my accounts to post $0 balance on my reports. It looks as if I am twice as much in debt now. I know its just a time issue, and I will wait it out.

[SouthJamaica]

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@Total80sKid wrote:

Thank you, Dave!

The BT is 4.99 apr for 12 months.

Most of my other cards were 23.99-25.99%

I was living beyond my means, but havent been for months. Those maxed out cards had been that way for a couple of years.

I wonder how long it will take for all of my accounts to post $0 balance on my reports. It looks as if I am twice as much in debt now. I know its just a time issue, and I will wait it out.

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Usually the zero balances will all have reported within a month.

Your score will rise significantly once they have all reported, so enjoy the ride

Scorewise it would have been preferable not to put it all on that one card, but since the interest rate is so low YOU DID THE RIGHT THING!  As you pay down the balance transfer card, you'll see your scores rise even more.  There seems to be mixed evidence about whether getting to 49% on that card will be a significant breakpoint, but getting to 29% is a beauty.

[Total80sKid]

Thank you, SouthJamaica!

I recently had 2/3 of my scores over 700 (1st time in my life), but now after my spree of apps from a week or two are hitting with new accts, one dropped below 700, but my TU is still over 700.

I'm hoping once everything settles and reports that all 3 scores will be over 700.

I feel I did the right thing, interest wise, putting all of my balances on that one card.

I just couldn't pass up 4.99% for 12 months!

I was getting nowhere with double payments on my 23-25% cards.

[Anonymous]

Nicely done.

In terms of what really matters, Finances > Credit Scores.