topic Re: Discover IT balance txfer in Credit Cards

Discover IT balance txfer

Anonymous — Fri, 03 May 2019 20:01:46 GMT

I'm new to Discover and this is my first balance txfer. My cl was 6500 and I transferred 5000 at 0% interest for 18 mos. If I don't use the card for purchases and just work to pay off this balance for a year does that count as inactivity. I don't want them to think I'm a risk with my utilization that high but I also don't want to not use the card either. I'm not familiar with Discover so not sure how exactly to balance getting down my balance and using the card to eventually grow with them and hopefully get cli in the future. Any insight or advice on how to manage my newly acquired Discover would be appreciated.

Re: Discover IT balance txfer

Anonymous — Fri, 03 May 2019 20:08:42 GMT

With a BT that high, don’t put any new purchases on it, just pay it down. It’s going to decimate your credit score until you pay it down under 48.9% ($3179 balance).

A BT and payments on a BT counts as activity on a card.

Re: Discover IT balance txfer

Anonymous — Fri, 03 May 2019 20:19:22 GMT

Thanks so much that's good to know that payments are considered activity. I know my credit score is going to take a hit but won't it balance itself out if now my QS is at 0 balance?

Re: Discover IT balance txfer

Anonymous — Fri, 03 May 2019 20:24:53 GMT

The score impact depends on your aggregate utilization percentage as well obviously but a single card beyond 28.9%, 48.9, and 68.9% are scoring thresholds as well.

Just work on paying it off and don’t worry about it. I was just trying to emphasize the importance of not putting more charges on there.

Also keep in mind that Discover’s BT card doesn’t have a purchase intro APR, just a BT one, so you would actually be hit with interest for those.

Re: Discover IT balance txfer

pinkandgrey — Fri, 03 May 2019 20:48:52 GMT

Yeah, Saeren covered all the highlights lol. Just pay it down and everything will be good. Disco is very forgiving and will still give you your CLIs as long as you use the card responsibly. Disco also seems to like large amounts on the cards.

Re: Discover IT balance txfer

Anonymous — Fri, 03 May 2019 21:18:04 GMT

In my case I have used Discover BTs and pay within the time frames of the BT. Did not put anything else on the card until the BT was $0. Used Discover BTs over the years and no kick back. In fact, I am now paying off three and have it planned to the $0 mark. They have treated me well.

Re: Discover IT balance txfer

Anonymous — Fri, 03 May 2019 21:28:56 GMT

@pinkandgrey ... they immediately sent me to the fraud dept when I purchased a $2600 watch last week lol. But all good just looking out for me.

Re: Discover IT balance txfer

SouthJamaica — Fri, 03 May 2019 22:01:51 GMT

@Anonymous wrote:
I'm new to Discover and this is my first balance txfer. My cl was 6500 and I transferred 5000 at 0% interest for 18 mos. If I don't use the card for purchases and just work to pay off this balance for a year does that count as inactivity. I don't want them to think I'm a risk with my utilization that high but I also don't want to not use the card either. I'm not familiar with Discover so not sure how exactly to balance getting down my balance and using the card to eventually grow with them and hopefully get cli in the future. Any insight or advice on how to manage my newly acquired Discover would be appreciated.

1. No that's not inactivity. They won't think you're a risk but the high percentage utilization (77%) will depress your FICO scores.

2. Do NOT use the card for purchases while you have the balance transfer out there. You will wind up paying interest on the purchases from day one... no grace period.

Re: Discover IT balance txfer

SouthJamaica — Fri, 03 May 2019 22:02:58 GMT

@Anonymous wrote:
Thanks so much that's good to know that payments are considered activity. I know my credit score is going to take a hit but won't it balance itself out if now my QS is at 0 balance?

No it won't because individual card utilization is a distinct scoring factor. You lose points for having any one card at 30% or higher.

Re: Discover IT balance txfer

AverageJoesCredit — Fri, 03 May 2019 22:10:12 GMT

Its almost always better to not mix bt and purchases. However, and some Disco cards has this as does mine, there are 0% Promo apr on Purchases and 0% Bt promos at same time so you could still make purchases on it if you wanted to. Just pay it off when statement cuts.

Re: Discover IT balance txfer

AverageJoesCredit — Fri, 03 May 2019 22:11:38 GMT

Also op is prime candidate for large cli later as Disco often like people who carry huge balance so i wouldnt be suprised op gets a 3-4k increase down the road

Re: Discover IT balance txfer

Anonymous — Fri, 03 May 2019 22:23:33 GMT

@AverageJoesCredit wrote:
Its almost always better to not mix bt and purchases. However, and some Disco cards has this as does mine, there are 0% Promo apr on Purchases and 0% Bt promos at same time so you could still make purchases on it if you wanted to. Just pay it off when statement cuts.

Discover’s 18 month 0% BT card has a 6 month 0% intro purchase APR, their regular non-BT card has 14 months 0% for both. I had to go check. It’s still best not to throw any charges on it though. Payments may go to the wrong balance, I don’t feel like digging through the terms.

Re: Discover IT balance txfer

Anonymous — Fri, 03 May 2019 22:15:01 GMT

@AverageJoesCredit wrote:
Also op is prime candidate for large cli later as Disco often like people who carry huge balance so i wouldnt be suprised op gets a 3-4k increase down the road

Yeah I agree completely. Might even be more than that.

Re: Discover IT balance txfer

M_Smart007 — Fri, 03 May 2019 23:16:51 GMT

@AverageJoesCredit wrote:
Its almost always better to not mix bt and purchases. However, and some Disco cards has this as does mine, there are 0% Promo apr on Purchases and 0% Bt promos at same time so you could still make purchases on it if you wanted to. Just pay it off when statement cuts.

+1` I was just going to comment, you beat me to the punch. I Have 0% Purchase and 0% BT on New Disco it.

so its mix and match.

0% BT, 0% on Purchases, 5% Cash Back Gas plus Cash Match at end of 1 year. (cash Match only on purchases)

Re: Discover IT balance txfer

Anonymous — Fri, 03 May 2019 23:37:57 GMT

I just checked and my intro offer is 0% apr on balances for a year and also 0% BT. So, I'm just going to pay everything down and not use the card until I at least pay off the balance. Thanks for all the great info.

Re: Discover IT balance txfer

CreditInspired — Sat, 04 May 2019 15:29:46 GMT

@Anonymous wrote:
I'm new to Discover and this is my first balance txfer. My cl was 6500 and I transferred 5000 at 0% interest for 18 mos. If I don't use the card for purchases and just work to pay off this balance for a year does that count as inactivity. I don't want them to think I'm a risk with my utilization that high but I also don't want to not use the card either. I'm not familiar with Discover so not sure how exactly to balance getting down my balance and using the card to eventually grow with them and hopefully get cli in the future. Any insight or advice on how to manage my newly acquired Discover would be appreciated.

Are you sure it’s for 18 mos? If yes, kudos to you! I thought the 18 mos BT was 5.99% and 12 mos was 0%.

Your payments are considered acticity, so you’re good.

I agree with @Anonymous, work on getting the outstanding balance down—no new purchases.

Re: Discover IT balance txfer

CreditInspired — Sat, 04 May 2019 15:38:30 GMT

@AverageJoesCredit wrote:
Also op is prime candidate for large cli later as Disco often like people who carry huge balance so i wouldnt be suprised op gets a 3-4k increase down the road

Now this is really good to know @Anonymous. Thanks. Because as soon as my Disco BT balance is under 8.9% (now at ~27%), I’m looking for another big CLI. Well praying for one anyway 😂