topic Re: Balance Transfer Help in Credit Cards

Balance Transfer Help

Anonymous — Sun, 04 Jan 2015 22:13:58 GMT

Have an AMEX with $7500 on a $10k limit. Apped and approved for a Citi Diamond Pref with a CL of $8k, 0% transfer for 18mos. Now, do I transfer it all on to this card, or app for another 0% balance transfer card and split the transfer? I don't want my credit score to take a hit for almost maxing out a credit card.

Re: Balance Transfer Help

BluePoodle — Sun, 04 Jan 2015 22:19:00 GMT

@Anonymous wrote:
Have an AMEX with $7500 on a $10k limit. Apped and approved for a Citi Diamond Pref with a CL of $8k, 0% transfer for 18mos. Now, do I transfer it all on to this card, or app for another 0% balance transfer card and split the transfer? I don't want my credit score to take a hit for almost maxing out a credit card.

Do you have other cards reporting 0 balance? I am not an expert, but multiple cards with balances reporting lower vs 1 card maxed with others reporting 0 almost seems a wash. Not to mention the AAoA hit and the HP hit you will take with another ap. As long as you pay it down, it all seems like just a temporary lower score to me until you pay it off and 18 months is a nice time to do so.

Re: Balance Transfer Help

NRB525 — Sun, 04 Jan 2015 22:20:03 GMT

How much do you plan to pay monthly on the $7,500 (on how ever many cards it is on) in order to pay it down closer to zero?

Are you planning to pay it down, or only reduce interest cost for a time while the blance stays in the $7k range?

Re: Balance Transfer Help

Anonymous — Sun, 04 Jan 2015 22:23:22 GMT

Current utilization is at 20% before this Citi card, with multiple cards open, roughly 8.

Plan on paying between $500 and $800 a month.

Re: Balance Transfer Help

BluePoodle — Sun, 04 Jan 2015 22:28:52 GMT

How many other cards reporting a balance? What is your AAoA and how many HP's under 1 year old?

Re: Balance Transfer Help

Anonymous — Sun, 04 Jan 2015 22:30:49 GMT

@Anonymous wrote:
Current utilization is at 20% before this Citi card, with multiple cards open, roughly 8.

Plan on paying between $500 and $800 a month.

My plan would be to put it all on the CDP and not do any more apping for a while. You can't 'hide' that $7,500 anywhere so get it on one card and use that 5 to 800 per month to eliminate it while trying to get any other cards down to zero as well.

Re: Balance Transfer Help

NRB525 — Sun, 04 Jan 2015 22:31:53 GMT

@Anonymous wrote:
Current utilization is at 20% before this Citi card, with multiple cards open, roughly 8.

Plan on paying between $500 and $800 a month.

Good to hear.

In that case, if it were me (and it has been me many times in the past with this scenario) I would transfer the entire $7,500 to Citi and start paying it down at that rate. Your FICO will take a short term hit of a few points, but the bigger benefit is direct interest cash savings in your pocket, and no need to burn another HP trying to manage two BT. You will be through the worst of any FICO score issues in a few months and if you aren't apping anyway, no concern at all.

Re: Balance Transfer Help

Chris679 — Mon, 05 Jan 2015 00:26:31 GMT

Agree with everyone else, just put it on the Citi and pay at least 10% per month until it's paid off or 18 mo is up.

Re: Balance Transfer Help

Anonymous — Mon, 05 Jan 2015 01:11:12 GMT

Thanks for the input everyone. I have multiple cards with a 0 balance, just wanted to make sure it'd be okay to have this new card almost maxed. Appreciate your help!!