topic Re: CC Confusion in Credit Card Applications

CC Confusion

Anonymous — Sat, 13 Oct 2018 01:51:00 GMT

I called BOA today to try and get a lower APR. He said he was unable to do that, but because of the age of the account and my "preferred customer" (wink wink) status, he could go ahead and get me signed up for a rewards card. I assumed he would just update the existing card to that, but he said no. I would have two cards from BOA. He wants me to open a new account, use it as a BT card for my other CC accounts. He then suggested that once I transfer their balance (other bank) to BOA, I then transfer the existing BOA balance to the other bank (after possibly negotiating a lower rate). It sounds like an easy way to run up my utilization while assuming another bank my give me a lower rate when BOA would not. I can see how people can get themselves into a mess quickly.

I told him I'd get back with him later once I put some more thought/research into it. I have had the same cards for ages (oldest account, BOA, 15yrs) and just recently applied for a C1 QS. This is all new to me. Trying to find a less complicated way to build credit and pay down these CCs with as little interest as possible.

Re: CC Confusion

jdbkiang — Sat, 13 Oct 2018 04:04:26 GMT

What's your credit score at right now? Do you have any other accounts or lines of credit open? Any delinquencies?

Re: CC Confusion

AverageJoesCredit — Sat, 13 Oct 2018 12:14:24 GMT

More info needed. List your cards etc youll get more as advice

Re: CC Confusion

Anonymous — Sat, 13 Oct 2018 12:35:11 GMT

Scores range between 720-736 for the 3 agencies.

Currently have BoA 6kCL, Target Visa 3k CL and Barclay 3k CL. They are all between 10-15 years old.

No delinquencies in about 4 years. Barclay was closed back in 14, but has been paid as agreed since that time.

Just recently applied for a QS and was approved. Haven't received the card/documentation yet, so I'm unsure of the CL.

It will have the 15mo 0% APR, I assume, so depending on the CL, I could possibly move some stuff there.

Just paid off my car a couple of weeks ago, so I will have a little more to throw at these now.

Re: CC Confusion

HeavenOhio — Sat, 13 Oct 2018 13:45:28 GMT

I'm confused too. But if I'm getting this right, you can transfer your non-BoA balances to the new BoA card. And you can transfer the balance on the old BoA card to the new QS card.

Re: CC Confusion

Anonymous — Sat, 13 Oct 2018 13:52:18 GMT

Since I just applied for the QS card, I'm hesitant to open ANOTHER BOA card so soon. I'm concerned about what that might do to my credit scores. Once I get the card and see the CL, I will know more, I guess. I just don't want to get a new card and max it out with a BT.

I bank with a CU here, so I'm wondering if I shouldn't just try and do a loan through them and pay down the cards so they can then be used appropriately (PIF each month).

Being an adult is no fun!

Re: CC Confusion

SouthJamaica — Sat, 13 Oct 2018 14:53:21 GMT

@Anonymous wrote:
I called BOA today to try and get a lower APR. He said he was unable to do that, but because of the age of the account and my "preferred customer" (wink wink) status, he could go ahead and get me signed up for a rewards card. I assumed he would just update the existing card to that, but he said no. I would have two cards from BOA. He wants me to open a new account, use it as a BT card for my other CC accounts. He then suggested that once I transfer their balance (other bank) to BOA, I then transfer the existing BOA balance to the other bank (after possibly negotiating a lower rate). It sounds like an easy way to run up my utilization while assuming another bank my give me a lower rate when BOA would not. I can see how people can get themselves into a mess quickly.

I told him I'd get back with him later once I put some more thought/research into it. I have had the same cards for ages (oldest account, BOA, 15yrs) and just recently applied for a C1 QS. This is all new to me. Trying to find a less complicated way to build credit and pay down these CCs with as little interest as possible.

It's just a con, to get you to apply for another credit card; don't do it.

Re: CC Confusion

jdbkiang — Sat, 13 Oct 2018 15:41:06 GMT

How long would it actually take you to pay down the balances? And what's the interest rate? Cause you still have to pay a fee to balance transfer, so if it'll only take you a matter of months to have it paid off, you may not be saving that much money.

Opening another card won't really hurt your score whether it's with BoA or anyone else. Sure, the inquiry and AAoA might give you a temporary drop, but it'll recover soon after.

The issue with taking out a loan is that would give you incentive to drag out that loan. While it probably has a lower interest rate than your cards, I think it'd be best to simply pay off the cards as soon as possible. Also, you can call C1 to find out your CL and process the balance transfer.

Re: CC Confusion

Anonymous — Sat, 13 Oct 2018 15:56:13 GMT

The offer for the new BOA card he offered was 0% for 15 months, I believe. Maybe 18. He was spitting out numbers like a crazy person!

The offer for the QS is 0% for 15 mos. I could easily pay off one of the cards in that amount of time with no interest. Depending on the CL, I could possibly put both Target and BOA on there. I just dont want to get one and immediately max it out.

Hoping the card comes today. The hurricane has everything moving slowly down here! If I don't get it today, I will give them a call and try and get some info.

Re: CC Confusion

zerofire — Sat, 13 Oct 2018 17:10:01 GMT

Sounds like the representitive that you were talking to was a smart buisness class banker. The only issue is that his solution was better than your original request.

Original request:

Lower the APR on my existing card.

Solution:

New account to lower APR to 0% for 15 billing cycles (Bankamericard).

Balance transfer existing BoA balance out of BoA to another bank.

Balance transfer all other banks balances in the 60 days of $0 fee including the balance that just left onto the new card.

I think you got the balance transfer order mixed up. You have to remember that BT's can only happen from another bank. It does not make sense for BoA to allow a 15-30% APR to become 0% just by moving credits around internally when they would rather you pay the higher APR.

Re: CC Confusion

Anonymous — Sat, 13 Oct 2018 19:38:25 GMT

Oh, I have no doubts that he knew what he was talking about. I just don't want to fix my problem by getting another card with them. I've got a QS card on the way, so hopefully I can shuffle some stuff around and take advantage of the 0%. I have no need for a wallet full of cards. Too much temptation!

Onward to adulthood I go!

@zerofire wrote:
Sounds like the representitive that you were talking to was a smart buisness class banker. The only issue is that his solution was better than your original request.

Original request:
Lower the APR on my existing card.

Solution:
New account to lower APR to 0% for 15 billing cycles (Bankamericard).
Balance transfer existing BoA balance out of BoA to another bank.
Balance transfer all other banks balances in the 60 days of $0 fee including the balance that just left onto the new card.

I think you got the balance transfer order mixed up. You have to remember that BT's can only happen from another bank. It does not make sense for BoA to allow a 15-30% APR to become 0% just by moving credits around internally when they would rather you pay the higher APR.

Re: CC Confusion

K-in-Boston — Sat, 13 Oct 2018 20:24:26 GMT

He was offering you the BankAmericard, which comes with a $0 balance transfer fee if you transfer when you first open the account. If you're carrying high interest balances, you'd gain much more financially from opening that new card and transferring as much of your non-BoA balances to that card as possible than you would lose with a temporary credit score dip. Then you could move the other BoA balance to your new CapOne. Your score is going to likely take a dip soon due to the new CapOne card reporting and when your auto loans reports as closed. Especially if you have no other open loans, you might see as much as a 20+ point loss when the auto loan is reported as closed. So if you're going to do it, do it soon would be my advice. If you don't see yourself paying off the other balances within a few months, the BT would be a good financial decision. As for getting a personal loan through your credit union, that'll likely cause the same credit score sting for a new account as a new credit card (possibly worse since it'll be "maxed out" for quite a long time) and will be a much higher interest rate than 0% with BoA or 3-5% with CapOne when you include the balance transfer fee.

Re: CC Confusion

Anonymous — Sun, 14 Oct 2018 12:47:55 GMT

As expected, you guys made some very valid points. I did apply for the BoA card last night. No instant approval, but I'm hoping that isn't a bad sign. I did receive the C1 card yesterday with a CL of 5k, so that will give me some wiggle room to BT and not max it out.

Thanks for all the advice! Looking forward to a 0 balance on these cards!