topic Re: Does Penfed balance chase? in Credit Cards

Does Penfed balance chase?

CreditJourney007 — Mon, 21 Sep 2020 22:09:37 GMT

I want to take advantage of the blank check 18 month .99% BT to pay off an emergency I charged elsewhere.

This would make my Penfed util around 47%, but would be under 30% in like 3 months. I don't want to be balance chased, and my util would be around 9% overall, since most cards don't report a balance and the other ones are all under 10% util.

Any advice is appreciated.

Re: Does Penfed balance chase?

blindambition — Mon, 21 Sep 2020 22:13:36 GMT

BT from CU is pretty safe, provided you're being responsible. CU don't typically balance chase like traditional lenders.

Re: Does Penfed balance chase?

AverageJoesCredit — Mon, 21 Sep 2020 22:29:00 GMT

@CreditJourney007 wrote:
I want to take advantage of the blank check 18 month .99% BT to pay off an emergency I charged elsewhere.
This would make my Penfed util around 47%, but would be under 30% in like 3 months. I don't want to be balance chased, and my util would be around 9% overall, since most cards don't report a balance and the other ones are all under 10% util.

Any advice is appreciated.

you should be ok. Those numbers arent crazy high and ive yet to read a Penfed bc. Imho, do whats best for you, lenders will thrive no matter what but our opportunities are not infinite.

Re: Does Penfed balance chase?

CreditJourney007 — Mon, 21 Sep 2020 22:36:44 GMT

Thank you both for your insight!

I really wanted to do a slightly bigger BT, but I don't want to go over the 48.5% threshold! Or spook PenFed.

Re: Does Penfed balance chase?

tcbofade — Mon, 21 Sep 2020 22:54:18 GMT

@CreditJourney007 wrote:
Thank you both for your insight!
I really wanted to do a slightly bigger BT, but I don't want to go over the 48.5% threshold! Or spook PenFed.

I took both of my PenFed CC's to 68% with blank check BTs and have had no problems.

Good luck!

Re: Does Penfed balance chase?

CreditJourney007 — Mon, 21 Sep 2020 23:49:41 GMT

@tcbofade wrote:
@CreditJourney007 wrote:
Thank you both for your insight!
I really wanted to do a slightly bigger BT, but I don't want to go over the 48.5% threshold! Or spook PenFed.
I took both of my PenFed CC's to 68% with blank check BTs and have had no problems.

Good luck!

Oh really? Good to know! I'm still deciding...the blank check offers don't come around all the time (for me). I have until 10/31 to respond though!

Re: Does Penfed balance chase?

AverageJoesCredit — Tue, 22 Sep 2020 01:03:41 GMT

@CreditJourney007 wrote:
Thank you both for your insight!
I really wanted to do a slightly bigger BT, but I don't want to go over the 48.5% threshold! Or spook PenFed.

I took my PSECU visa up to 93% to survive Covid, and so far so good so long as you make your payments. In a time when credit is hard to come by if you have good offers such as 0% or even bt options, use them to help yourself in anyway you can as for what we have seen, whats availble today, may not be there tomorrow.

Re: Does Penfed balance chase?

blindambition — Tue, 22 Sep 2020 01:13:24 GMT

@CreditJourney007 wrote:
Thank you both for your insight!
I really wanted to do a slightly bigger BT, but I don't want to go over the 48.5% threshold! Or spook PenFed.

You're welcome and good luck. You'll do just fine!

Re: Does Penfed balance chase?

dogmeat — Tue, 22 Sep 2020 06:34:32 GMT

No, they don't. I was at 28k+ of a 30k limit PF card a while back ago, and they never blinked. Depending on your other cards, though, it may not be PenFed you have to worry about. Other issuers you have may see your increased utilization on the PenFed account and act on it. Still, if it's saving you money, is it BFD if they do? Only you can answer that.

Re: Does Penfed balance chase?

coldfusion — Tue, 22 Sep 2020 13:44:23 GMT

@CreditJourney007 wrote:
Thank you both for your insight!
I really wanted to do a slightly bigger BT, but I don't want to go over the 48.5% threshold! Or spook PenFed.

Don't worry about scaring them just because you did a balance transfer equalling more than 50% of your credit limit. What you do want to do is not scare them during the repayment period.

The one thing I absolutely suggest is that you pay off the balance much like it were an installment loan i.e. pay back at least 6% of the original balance every month, and not employ a strategy like planning on making mininum or close to mininum payments for 17 months with a single large balloon payment in month 18.

Re: Does Penfed balance chase?

Wavester64 — Tue, 22 Sep 2020 14:02:00 GMT

@CreditJourney007 wrote:
I want to take advantage of the blank check 18 month .99% BT to pay off an emergency I charged elsewhere.
This would make my Penfed util around 47%, but would be under 30% in like 3 months. I don't want to be balance chased, and my util would be around 9% overall, since most cards don't report a balance and the other ones are all under 10% util.

Any advice is appreciated.

What do you mean by "balance chased"?

Re: Does Penfed balance chase?

CreditJourney007 — Tue, 22 Sep 2020 14:04:45 GMT

@coldfusion wrote:
@CreditJourney007 wrote:
Thank you both for your insight!
I really wanted to do a slightly bigger BT, but I don't want to go over the 48.5% threshold! Or spook PenFed.
Don't worry about scaring them just because you did a balance transfer equalling more than 50% of your credit limit. What you do want to do is not scare them during the repayment period.

The one thing I absolutely suggest is that you pay off the balance much like it were an installment loan i.e. pay back at least 6% of the original balance every month, and not employ a strategy like planning on making mininum or close to mininum payments for 17 months with a single large balloon payment in month 18.

I plan to have a balance of about $5000 with about $400-$500 payment every month.

Re: Does Penfed balance chase?

coldfusion — Tue, 22 Sep 2020 14:13:06 GMT

@Wavester64 wrote:
What do you mean by "balance chased"?

As you pay down the card and your remaining balance drops they also decrease the credit limit on the card, usually to be just above the remaining balance.

Creates a headache because the card will continually report high utilization as long as there is a balance remaining and it's not unusual for the card to be closed by the issuer when the balance reaches 0.

Re: Does Penfed balance chase?

coldfusion — Tue, 22 Sep 2020 14:22:45 GMT

@CreditJourney007 wrote:
@coldfusion wrote:
@CreditJourney007 wrote:
Thank you both for your insight!
I really wanted to do a slightly bigger BT, but I don't want to go over the 48.5% threshold! Or spook PenFed.
Don't worry about scaring them just because you did a balance transfer equalling more than 50% of your credit limit. What you do want to do is not scare them during the repayment period.

The one thing I absolutely suggest is that you pay off the balance much like it were an installment loan i.e. pay back at least 6% of the original balance every month, and not employ a strategy like planning on making mininum or close to mininum payments for 17 months with a single large balloon payment in month 18.

I plan to have a balance of about $5000 with about $400-$500 payment every month.

That would work just fine. There is a long term effect as well by following this path with regard to potential for CLIs once the BT is paid off.

Re: Does Penfed balance chase?

CreditJourney007 — Tue, 22 Sep 2020 15:09:22 GMT

@dogmeat wrote:
No, they don't. I was at 28k+ of a 30k limit PF card a while back ago, and they never blinked. Depending on your other cards, though, it may not be PenFed you have to worry about. Other issuers you have may see your increased utilization on the PenFed account and act on it. Still, if it's saving you money, is it BFD if they do? Only you can answer that.

Depends on the card, but it might save me time calling them to close the cards individually

A few years ago, I think my AMEX util was never below 80%. For like a year straight and though they hate me and never give me CLI's, they didn't balance chase. Not sure the sensitivity of my other creditors to this. The only balance chasing that has happened to me has been with Synch and all those cards are now closed anyway.

Re: Does Penfed balance chase?

M_Smart007 — Tue, 22 Sep 2020 15:20:42 GMT

@CreditJourney007 wrote:
@coldfusion wrote:
@CreditJourney007 wrote:
Thank you both for your insight!
I really wanted to do a slightly bigger BT, but I don't want to go over the 48.5% threshold! Or spook PenFed.
Don't worry about scaring them just because you did a balance transfer equalling more than 50% of your credit limit. What you do want to do is not scare them during the repayment period.

The one thing I absolutely suggest is that you pay off the balance much like it were an installment loan i.e. pay back at least 6% of the original balance every month, and not employ a strategy like planning on making mininum or close to mininum payments for 17 months with a single large balloon payment in month 18.

I plan to have a balance of about $5000 with about $400-$500 payment every month.

That is a good plan ...IMHO

Re: Does Penfed balance chase?

CreditJourney007 — Tue, 22 Sep 2020 15:31:27 GMT

Ok, follow up question then:

I usually get a bonus in April that would cover the rest. Bad idea to do $500/month for the next 7 or so months and then PIF? I'm fine either way b/c it'll be .99% interest for 18 months. Really would like to just be done with the payments, but don't want a CLD, so again I'm fine with paying it off within the next year.

Re: Does Penfed balance chase?

coldfusion — Tue, 22 Sep 2020 17:23:26 GMT

No, not a bad idea.

Re: Does Penfed balance chase?

tcbofade — Tue, 22 Sep 2020 22:27:39 GMT

Honestly, if you're paying $500 per month, you'll have a $5k BT paid off in less than a year... I'd just do that if it were me.

Your call tho. Paying it off in April certainly wouldn't hurt anything.

Re: Does Penfed balance chase?

CreditJourney007 — Sat, 26 Sep 2020 01:43:13 GMT

Very true! Haven't decided what I want to do yet! Might just do the BT for the 18 months and not lump sum the last part since interest is so low.