topic Re: Balance Transfer Advice Needed in Credit Cards

Balance Transfer Advice Needed

Taurus22 — Fri, 15 Feb 2019 22:16:59 GMT

So I am a returning forum member, but forgot my password, so I've started under a new email.

Current Credit situation:

Salary: 52k+ Debt/Income ratio 28%(CTI)

FICO score: 770

AAoA: 3

UT%: 23% current ; perfect credit payment history

Inquiries: 2 (dropping off in July 2020)

7 total accounts : 5 active/2 closed

Auto loan started in July 2018 (this accrued the 2 inquiries and the recent drop in AAoA.)

Citi Double Cash card (2015) 4,000CL - Clean

Discover It (2015) 8,000CL - $3,300 balance

Personal bank Visa card (2013) - 2,500CL - Clean (opened as secured to start credit, now unsecured)

Overdraft Protection Line of Credit 5,000CL - Clean (but for some reason this does not apply to overall CL)

Overall Total CL: 14,500

(The Discover balance you see is under a 12 mth 0% APR promotion which ends 1st of June 2019.)

I would like to do a Balance Transfer in May from the Discover to a new promotional card, but I want the new card to have some value to me after the BT promotion, as a rewards card. I've narrowed my choices down to either the Chase Freedom Unlimited or the CapOne SavorOne. Both offer a $150 cashback bonus and 15 mth 0% APR for BT and Purchases.

I was leaning to the CapOne Savor for the 3% dining cashback, because the Chase (1.5%CB) is no better than my Citi Double Cash (2%CB), but after doing some reading I keep seeing people mention that it is good to be "in with" Chase, for whatever reason. Can anyone clarify this and...why?

Regardless, my biggest issue is to have the best opportunity to get a high starting limit for the BT.

Finally, I have also read that American Express tends to start with higher SL and also gives larger CL increase jumps. Personally, I have no use for AmEx as they seem to be very limited, but in the interest of raising my overall CL total, I thought that this might be a good addition as well, just as a sock-drawer card. As I did with the Citi DC card and the Discover.....I applied for both within an hour of each other so the 2nd creditor would not yet see the 1st creditor and essentially clumped both inquiries together to increase chances of acceptance. Obviously, I will be gardening over the next 2 years anyway as I work off the BT so the credit hit for the AAoA for 2 new cards shouldn't drop me below 700 I wouldn't think, and it seems the overall CL increase would benefit me long-term.

So, I'm looking for advice: Chase Freedom Unlimited or CapOne SavorOne for best chance at high SL for BT? And would it be advisable to do a cluster application with the "winner" and the AmEx EveryDay card? Anything else I might be over-looking?

Any advice would be greatly appreciated!

Re: Balance Transfer Advice Needed

Anonymous — Fri, 15 Feb 2019 23:06:56 GMT

Welcome back to the forums, and for sharing some information about what you have going on. This helps us, and generally a better response from someone like me.

You're FICO score is wonderful, and your DTI is under thirty percent which is typically a loan writing. Credit cards come with a high interest rate. I currently have the DISCOVER IT card as well, and I actually benefited from a balance transfer they had. I took advantage of that offer as well.

DSVR offers some of the best balance transfers I have seen. Typically a bank card comes with a 0 % Transfer fee for moving debt around, consult you're bank, and see if you can move it to that card then do a Discover balance transfer? I did this, and I have a 4.99% rate on $2,500 for 18 months.

I would personally call CITI, and ask for a balance transfer offer stating you need to pay down exisiting debt, and you do not want to open another card. Just by asking you may be suprised with a nice offer in you're conversation.

CITI has the best balance transfer option currently on the market. Chase offers a great offer as well.

Have you consulted a local credit union to issue you a personal loan? It could diversify you're accounts, and loans are typically better looking on you're report as they are installment. I would first call the cards you use, and see if they can you anything at all.

Hope this helps

-Iceywarm

Re: Balance Transfer Advice Needed

Taurus22 — Fri, 15 Feb 2019 23:17:41 GMT

Thanks for the response Iceywarm.

Honestly, the point of doing this is to avoid any interest at all. I had never had any credit at all until I started building in 2013 and since that time I have never paid a dime of interest on credit cards. I pay in full every month. In this circumstance I have had to take advantage of Discover's promotion due to unexpected expenses and the only reason I did was due to the interest-free for 12 months. Otherwise, it would not exist at all.

The 2nd point is to increase my overall CL. By doing so, this would lower my overall UT% and give me room above and beyond the BT to actually use my (clean) Discover again daily without pushing my UT% too much.

To do this, it would have to be a 0% BT promotion and since I am going to have to do this anyway, I thought it might be beneficial to go ahead and take advantage of AmEx's higher limits to achieve the 2nd point.

Re: Balance Transfer Advice Needed

Kforce — Sat, 16 Feb 2019 01:03:56 GMT

@Taurus22 wrote:
So, I'm looking for advice:
Anything else I might be over-looking?
Any advice would be greatly appreciated!

Have no opinion as to Chase or CapOne as a better BT card. (Never used a BT)

All your other cards are cash back and the EveryDay is a points card.

(Need to check and be sure it is good to start splitting reward across different programs)

I would consider the "Bank of the West Cash Back Master Card". This was my highest starting limit card. Soft-pull CL increases, 3% cashback in (Gas, Grocery, Fast-Food, and Restaurant). All with no annual fee. Take a look and see if you live in one of the 19 qualifying states. Just hit apply for card and it will list the states before you start entering any personal info. This card with it's 3% in 4 categories along with a 2% general spend card are my two most used cards and my 2 highest at rewards. This will pair with your Double Cash very well.

Re: Balance Transfer Advice Needed

AverageJoesCredit — Sat, 16 Feb 2019 01:19:03 GMT

I just want to add clumping apps minutes or hours spart makes no difference if the 2 creditors pull same bureau. The second will see the first hp . There is no hiding hps nor does having 2 hps from 2 separate lenders within same time csncel out. Hps are ususlly instant. Just dont want you thinking you can pull a fastone on a lender lol. If they pull 2 separate bureaus, ok for the moment but many lenders, especially Chase snd Sir Barclays sp new accounts very close from approval to check that very behavior.

Re: Balance Transfer Advice Needed

AverageJoesCredit — Sat, 16 Feb 2019 01:20:58 GMT

Ps, you might contact @UncleB or another mod to see if they can help you restore your original useename if you like

Re: Balance Transfer Advice Needed

Taurus22 — Sat, 16 Feb 2019 01:26:18 GMT

Thanks KForce.

Like I say, the purpose of the AmEx EveryDay wouldn't really be for cashback or points, I really wouldn't use the card much, if at all. But from what I've read, AmEx simply gives higher CL's and increases which would buffer my overall CL and lower my UT%. The only reason I brought that up in my query was to suggest piggybacking it since I'm already going to be getting a new BT card......to cluster the two applications solely for the benefit of the CL increase AmEx offers. The inquiries would fall off in 2 years at the same time which is good.

My biggest concern again is really getting the highest CL for the BT card, (whether that be the Chase or the CapOne). Just hoping someone out there who maybe has both could toss me some info to which would give the higher chance of high CL, and any words of caution toward either of them. The CapOne Savor would benefit me the most AFTER the BT period ends, but I've read a couple people mentioning there is some benefit to having a Chase card in your mix and I'm curious about that.

C'mon you credit veterans......somebody out there has experience with both. Help me out here...

Re: Balance Transfer Advice Needed

UncleB — Sat, 16 Feb 2019 01:30:06 GMT

@AverageJoesCredit wrote:
Ps, you might contact @UncleB or another mod to see if they can help you restore your original useename if you like

@Taurus22 I've sent you a PM.

Re: Balance Transfer Advice Needed

AverageJoesCredit — Sat, 16 Feb 2019 01:34:53 GMT

Op probably not going to like me tonight lol but for sure there really is no true way to predict a high sl for a bt card. Chase is known for high limits to certain individuals but not all while Cap One is hit or miss imo. Their Venture card often rewards 30k limits but not sure if it has bt option.

Re: Balance Transfer Advice Needed

Taurus22 — Sat, 16 Feb 2019 01:55:23 GMT

AverageJoe , thanks for the responses.

I do understand there's no tell-tell way of knowing until you apply. I was hoping with my income, credit score/history, debt/income ratio there would be enough info to assume a guess based on what others may have received. Also, my definition of "high SL" would really be about 5k, whereas someone else might consider 10k high. Essentially, I need about that....5k SL. That would be confortable for me. But that's where I wonder - does my income/debt ratio warrant that level of CL?

Re: Balance Transfer Advice Needed

Kforce — Sat, 16 Feb 2019 02:04:34 GMT

@Taurus22 wrote:
AverageJoe , thanks for the responses.

I do understand there's no tell-tell way of knowing until you apply. I was hoping with my income, credit score/history, debt/income ratio there would be enough info to assume a guess based on what others may have received. Also, my definition of "high SL" would really be about 5k, whereas someone else might consider 10k high. Essentially, I need about that....5k SL. That would be confortable for me. But that's where I wonder - does my income/debt ratio warrant that level of CL?

I think you are good to go for 5k+

Any eBets from others, 100 eDollars down !!

Re: Balance Transfer Advice Needed

HeavenOhio — Sat, 16 Feb 2019 05:02:20 GMT

There's nothing really sexy about being "in" with Chase any more than any other bank. The advantage of being "in" is that a bank will likely value your internal history if you want to eventually apply for more than one card with them. In the case of Chase, people like to grab their trifecta: the Freedom, Freedom Unlimited, and Sapphire (Preferred or Reserve) cards.

There's a possible cost to getting "in," though. People might apply early in the game, then squeak in with a lousy limit. They'd have been better off waiting for a prettier profile.

I think you'll be approved for any of the cards that have been discussed. The issue I see with Chase is that starting limits are a crapshoot. I think Capital One would likely come through with a good limit, but it's hard to gauge what it takes to get approved by them these days.

I like the idea of the AMEX Everyday, even if MR points aren't your thing. You can spend to meet the signup bonus and not use the card much beyond that. Work on building your limit. That should be easy as long as you're making "substantial" payments toward your balance.

Once your balance is paid off, you can apply for an AMEX cashback card. At a point where it makes sense, all except 1k of Everyday can be transferred to the new card. Redeem your MR points for whatever you can (or forfeit them if they don't amount to much), then close the card.

Check here before transfering limits and closing, though. There might be a strategic way to combine limits and request CLIs. Once you're through with all that, you can transfer the rest of the Everyday's limit and close.

Re: Balance Transfer Advice Needed

AverageJoesCredit — Sat, 16 Feb 2019 12:11:47 GMT

I think you are fine income wise. Other good options for BT that are cards that csn really grow are Citibank and Bank of America. They both offer option to have the bt directly deposited into your checking where you csn pay off Discover yourself. I got a bt offer on my recent Wells Fargo Propel. There are plenty of options out there. You can even go the Credit Union route....Penfed, Langley, Navy, if you are eligble.

Re: Balance Transfer Advice Needed

Taurus22 — Sat, 16 Feb 2019 18:36:50 GMT

@HeavenOhio

Hey thanks for the info. This is the feedback I was looking for.

So that's why I kept seeing people fascinated with Chase. In that case, it's not such a big deal for me, no desire to run a trifecta with them. I'm very calculated with the cards I choose. I'm not really a 20+ CC type of credit builder.

So I think in the larger scope, the CapOne SavorOne would be a better fit for me after the BT promotion ends. My Discover gives 5% in category dining sometimes but that's only one quarter of a year. This would be a nice 3% year-round. I'll just need to do some digging around to see what the issue is with CapOne's approval issues that you mentioned. I'm guessing they have gotten tight recently? I have read that some people have seen some CL decreases with them....that would certainly be a red flag if that's a common issue with them.

Something else I've discovered over time since I've built my credit is that some of the CB categories that cards offer aren't really useful as you would think. For me, my Citi DC card covers any category that would offer 2% CB. So now I look for 3% and above....but categories like grocery and supermarkets are fairly useless because they don't cover Walmart Supercenters or Costco which are where I get the majority of my groceries. And Costco is restricted to specifically Visa cards anyway, another restriction.

3% gas cards are ok, but honestly, it wouldn't make a big dent in CB because most people only fill-up 2-3 times a month maybe. (my work commute is minimal) I know some cards offer CB specifically for utility providers but I don't think I've seen one for anything above 2%, which again, would be redundant considering my Citi DC card.

And like you mentioned regarding the AmEx Everyday, I think it would be a good CL builder for me. It doesn't fit into my CB lineup but you can't argue with a high CL builder. I think it would be totally worth the extra credit hit while I'm in the process anyway. And honestly, I learned something through this thread....I didn't know you could transfer CL's between cards. I still don't think I would have any long-term use for any AmEx as a daily use card but again, that would not be its purpose.

Re: Balance Transfer Advice Needed

Anonymous — Sat, 16 Feb 2019 18:46:59 GMT

You could always ask Disco to see if they can lower your APR or give you another interest rate promo. I have read some success but not sure if it was immediately following the end of a 0% interest time.

Re: Balance Transfer Advice Needed

Taurus22 — Sat, 16 Feb 2019 19:26:44 GMT

@RebuildingIsHard

I just requested an APR reduction with Disco in Oct. 2018....they dropped me from 21% to 18%. Heh. (Actually did the same with Citi that same month and got almost the same result)

So keeping the balance there is not an option. And it's not likely they will extend the 0% promotion, wouldn't make sense for them, they're a lender...that's how they make their money. Luckily for me, my scores are good enough to be in a position to do a BT to a new card. As I normally pay in full every month (aside from this circumstance) APR's have never been an issue to me. 10% , 25%, whatever they wanna roll with.

This does remind me though, I'm due for a CL increase with Disco. I'll have to do that at the end of this month, should be able to get the soft-pull 1-2k. Every little bit helps, right.

Re: Balance Transfer Advice Needed

HeavenOhio — Sat, 16 Feb 2019 20:25:11 GMT

Capital One CLDs have happened on cards with 5-digit limits that go mostly unused. "Mostly unused" seems to be about a year of usage averaging $100 or less per month. In those cases, limits have been decreased to 10k.

Not every bank allows credit limits to be transferred between cards. AMEX and Chase are pretty easy about it. Capital One doesn't allow it.

There are times when Chase and AMEX will transfer part of a limit on an existing card in order to offer a sufficient limit on a new one. It's not a big deal because you can call in right away and reallocate to your liking. AMEX has a 30-day waiting period between reallocations. That usually doesn't seem to get into anyone's way.

Re: Balance Transfer Advice Needed

Anonymous — Sun, 17 Feb 2019 22:32:56 GMT

@22Taurus22

Regarding going the Chase route -

I went with the Chase Slate for the 0% APR and $0 fee to BT ~$25K. Just paid off the BT (one week ahead of the 0% end deadline) and just PCed to the Freedom (will be my 2nd Freedom). Did the same with the BoA Americard although I'm not really interested in any of the BoA cards - so I'm not sure what to do yet there.

No spend bonus for a new Freedom account, but I avoided a sizable amount of BT fees (at least $750 on the Chase route alone) and of course 0% interest. Was nice of Chase and BoA to hold ~$35K of my debt for free for 15 months while I accumulated interest and bonuses (from various deposit account opening bonuses). Your BT is far less so this route may not worth it.

Regarding your comment about cash back for Utility Providers:

Huntington Voice has a 'choose your 3% CB category' and one Category is Utilities. I use for Water, Sewer, and Electric.

Re: Balance Transfer Advice Needed

Taurus22 — Tue, 19 Feb 2019 04:31:55 GMT

@ Sulaya

Lol. No doubt, that was nice of them! I'm hoping someone will be so nice to me, as well.

Also, I had not looked into the Huntington Voice until you mentioned it. It's a pretty decent card I have to say. Too bad they don't have a 0% BT promotion or that might have gotten the nod. While I was looking that up I also ran across the tiered Uber Visa that I had not seen yet. That one may land in my wallet after this BT process is over with.

Sheesh. After I grab these 2 new cards for the BT and overall CL increase, I'll be at 5 cc's. After doing all this digging I'm seeing about 3-4 more that I want. I'm not getting addicted....I'm not getting addicted....I'm not gett..... Damit.

Balance Transfer Conundrum

Taurus22 — Fri, 22 Feb 2019 05:02:49 GMT

First, I will apologize. This is sort of a continuation of another thread I started concerning BT but after doing some extensive reading on this forum I am doubling-guessing myself and wanted to get some fresh eyes on this. Looking for advice between 2 options.....

Current situation:

FICO: 770 average across all

AAoA: 3 (due to auto loan added in July 2018)

DTI: 28%

UT%: Current 24%

Inquiries: 2 EQ (July 2018), 0 TU

Local bank Visa: 2,500CL - Clean (started as secured in 2013, coverted to nonsecured)

Citi DC: 4,000CL - Clean

Discover It: 8,000CL - 3,000 balance (0%APR/12 promotion ends June 2019)

Overall CL: 14,500

Originally, I was thinking: Option 1

1: Apply for Chase Freedom (0%BT /15 mth + $150 spend bonus) for the BT from the Discover card

2: Apply for Barclay Uber Visa ($100 spend bonus) to increase overall CL

With both cards having spend bonuses I could satisfy both of those, giving me $250 to apply toward the balance of the BT

Also, both cards are nice rewards cards to add to my CB lineup.

----------------------------------------------------------------------------------------------------------------------------------------------

However, now I am considering this..... Option 2

1: Call Citi and Discover to get CLI's for both....last CLI's were in Nov. 2017 , so I'm overdue.

2: Afterward, call Citi back and ask if I could get the current (0%/18 mth BT promotion) on the DC card. I've had the card since Sept. 2015, perfect history. Not sure what their practices are and if this would even be possible.

(Upon further thought, since the Chase Freedom is almost a carbon-copy of the Discover, it would almost be redundant to have. But I want to apply for 2 new cards either way to increase overall CL.) So....

3: Apply for Barclay Uber Visa

4: Apply for either: USBank Cash+ Visa ($150 spend bonus) or Costco Anywhere Visa (Citi) One of these would be much more useful in my CB lineup than the carbon-copy Chase Freedom.

5: Request the BT from the Discover to the Citi DC card after (and if) I have approval for the Costco Visa (if I chose that) Don't want any kind of conflict with Citi regarding the BT and the new card approval....if this would even matter.

---------------------------------------------------------------------------------------------------------------------------------------------

So, the BT is absolutely necessary.....I'm just not sure which way to go about it.

Option 1: gives me the 2 new cards and overall CL increase but ties up one less useful card with the BT

Option 2: gives me 2 new cards that are much more useful to me and moves the BT on the existing DC card

Would the new cards affect the BT process? Or would doing the BT first affect approval of the new cards? Which option would be wiser? Would Citi even do this at all? Ack!

Please, any helpful advice would be priceless to me because I'm driving myself crazy trying to figure out my best options with this BT. After this I promise not to bug the forum anymore with this. I'm just way too cerebral and overly cautious and honestly, scared to death about this. Just want it all to work out in a smooth transition. Thanks guys....