topic Re: Balance Transfers Cards in Credit Cards

Balance Transfers Cards

Anonymous — Thu, 10 Nov 2016 13:58:12 GMT

Ive heard both the good and bad side of using a

Credit Card for Balance Transfers. What is the prevailing

wisdom on almost MAX-ing out the one card?

Re: Balance Transfers Cards

AverageJoesCredit — Thu, 10 Nov 2016 17:01:17 GMT

Id imagine the prevailing wisdom would be to not almost max it but if its a lender who doesnt spook easy and you have the zero interest for whatever amount of months probably ok. I would just make as big of payments as possible.

Re: Balance Transfers Cards

Anonymous — Thu, 10 Nov 2016 17:29:02 GMT

Going by my math, more important, my personal budget… if I can get the balance under 2 Grand I just stick it out even if I'm paying interest. A balance transfer is usually 3% off the top which is a huge finance charge equivalent to many months of carrying the balance anyway.

Re: Balance Transfers Cards

NRB525 — Thu, 10 Nov 2016 20:04:05 GMT

The first part of the answer is It Depends.

Max out a $20k line ? Maybe not such a good idea.

Max out a $2k line to park $1,800 that you then put on auto payment so it goes to zero on its own soon after the 12 or 18 month low APR expires, and it is your only maxed card, yeah, go for it.

Re: Balance Transfers Cards

Anonymous — Sat, 12 Nov 2016 17:27:41 GMT

My Capital One QS1, 2% fee and 18 Months APR. Move about

3K over which is 75% of my avaiable and pay down very

Aggressively. Whats do you all think?

Re: Balance Transfers Cards

NRB525 — Sat, 12 Nov 2016 19:05:04 GMT

BT $3k to Capital One and you'll have it paid off in 18 months? No question, go for it.

Re: Balance Transfers Cards

Anonymous — Sat, 12 Nov 2016 20:39:28 GMT

@Anonymous wrote:
My Capital One QS1, 2% fee and 18 Months APR. Move about
3K over which is 75% of my avaiable and pay down very
Aggressively. Whats do you all think?

I would do the following first:

How old is your BOA card? Request an increase on it if its at least 6 months old. If you do not see the button on your account page, call their executive office. Aim high, they will counter. See if you can convert it to a Better Balance Rewards.

see if you can get your quicksilver one 4.5k converted to $0 af quicksilver. Then combine both cards. (But request cli on each before combining if you havent already in the last 6 months)

Why do you have 6 USAA cards? I would think you could do some consolidating there and get some increases along the way. Did you get approved for 7k then just continue to apply for more because they approved you based on your profile? Not trying to sound offensive just trying to picture your profile.

You could close merrick if it has any fees.

Penfed you should be able to get an increase. What is your rate on the promise VS? That is a good card to BT to.

What is the emblem mc? Maybe close that.

You are on the cusp of great credit. I would focus on keeping all cards at less than 30% utilization. And only have a few cards report a balance. Make sure they are paid off by statement cut date.

I would only be using capital one more than usual when its a month or two before you're due for another increase.

You have some really good cards there and potential to start having limits and scores flourish. But maxing out a card right now to me would not be a wise idea when you are this close to 700 zone.

Re: Balance Transfers Cards

nycsimone — Sat, 12 Nov 2016 20:48:50 GMT

I say do it...who cares? If you have $10,000 in CC debt and you get a $10,000 CC...transfer it all in. Why pay $150 per month in interest? Get the Chase Slate card that has 0% interest for 15 months and no transfer fee. Also, as others have said...consolidate your cards. Lenders don't like to see people with 10+ credit cards. Get 2-3 cards with a high credit limit...it will look much better.

Re: Balance Transfers Cards

Anonymous — Sun, 13 Nov 2016 20:02:12 GMT

Thanks Everyone & especially NRB525, I did it. Now Im in

total pay off mode and need to join the Gardening club! :-)

Re: Balance Transfers Cards

Anonymous — Sun, 13 Nov 2016 20:06:32 GMT

Chase hates me,,,Im a recent rebuilder with 5/24. Maybe next time

mycsimone. Id love to get a Slate card. Im debt is only 3K anyway,

Im too small of a FISH for them to give me any credit right now.

Re: Balance Transfers Cards

UncleB — Sun, 13 Nov 2016 21:39:40 GMT

@nycsimone wrote:
I say do it...who cares? If you have $10,000 in CC debt and you get a $10,000 CC...transfer it all in. Why pay $150 per month in interest? Get the Chase Slate card that has 0% interest for 15 months and no transfer fee. Also, as others have said...consolidate your cards. Lenders don't like to see people with 10+ credit cards. Get 2-3 cards with a high credit limit...it will look much better.

This depends on the lender, and very much on the individual profile.

Re: Balance Transfers Cards

Anonymous — Sun, 13 Nov 2016 22:07:54 GMT

I'd just point out that (assuming a 0% interest BT) from a money-saving perspective, paying the minimum every month until the last when you pay-in-full is definitely the most effective option as future dollars are less valuable than present dollars. Obviously not ideal from a credit-scoring perspective, however.

Re: Balance Transfers Cards

Kevin86475391 — Sun, 13 Nov 2016 23:09:44 GMT

@Anonymous wrote:
I'd just point out that (assuming a 0% interest BT) from a money-saving perspective, paying the minimum every month until the last when you pay-in-full is definitely the most effective option as future dollars are less valuable than present dollars. Obviously not ideal from a credit-scoring perspective, however.

That's certainly true, but I'd be concerned about psychological factors and the potential for things to derail. If the person puts aside a set amount every month and doesn't touch it, and will definitely have it when the final payment is due, then it makes sense (and some cents) from a strictly economical perspective, but I think there's a significant danger of one of two things happening: either the person won't set aside the required money because he/she will think they can catch up later given the longer time horizon, or the person may be tempted to spend the money they have set aside. If either happens the marginal financial gains are quickly erased by even a few higher interest payments. Plus of course the credit scoring ramifications you mentioned.

It's all about what works best for each individual, but personally my advice would be to work out a plan to pay a very set, regular amount every single month and plan to finish slightly early just in case. It may cost very slightly more this way on lost interest yield/opportunity cost, but it's fairly marginal, especially on 3K, and it seems like a much safe strategy to me. Just my opinion though.

Congrats with your balance transfer, OP

Re: Balance Transfers Cards

Anonymous — Mon, 14 Nov 2016 21:26:00 GMT

It depends on the individual. Personally I like to consolidate debt onto 1 card once I've completed a project. It's simpler for me.

Re: Balance Transfers Cards

Anonymous — Mon, 14 Nov 2016 21:28:41 GMT

@Anonymous wrote:
Thanks Everyone & especially NRB525, I did it. Now Im in
total pay off mode and need to join the Gardening club! :-)

Kudos on your success!

Re: Balance Transfers Cards

Anonymous — Mon, 12 Dec 2016 16:27:09 GMT

I am shopping for a balance transfer credit card. Can someone point me to the best place/website/forum for information on the best balance transfer credit cards, especially on estimating the likely credit line on said card?