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Established Member
Posts: 16
Registered: ‎04-16-2012
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Doing this backwards while paying off debt.

Well I would love some advice. I originally consolidated my debt which was $18500 on a installment loan back in March with interest rate of 14% and 5 years.
This past summer I got serious about a budget and paying off this loan in 18 monts so I can be consumer debt free before buying a new home for my growing family. I am considering taking advantage of 18m balance transfer offers to get interest rate down to 0%.
My Penfed card has a CL of $12500, a discover with $8900 and BARCLAYS with $5000 all have 0 balances. My current utilization is 4% and my FICO scores are 740-776.
I know I will take a huge FICO hit by doing the balance transfers and increasing utilization but it would save me $3500 interest and I would have it all paid off in 18months.
I do not want to max out the cards so I was thinking $6000 on Penfed( no balance transfer fee at 4.99 for life), 6000 on discover and $4000 on Barclays
Any thoughts? Am I being ridiculous lol
Moderator Emeritus
Posts: 32,865
Registered: ‎08-04-2007
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Re: Doing this backwards while paying off debt.

Sometimes finances trump FICO. I'd consider it as an option.

Moderator Emeritus
Posts: 14,122
Registered: ‎04-15-2011
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Re: Doing this backwards while paying off debt.

If not apping for anything currently, who cares if scores takes a bit of a hit.  Save money, pay it off.  Besides your scores will go back up after you pay it off.  Good luck.

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.

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