topic Re: Discover Balance Transfer Question in Credit Cards

Discover Balance Transfer Question

Mland-EC — Mon, 08 Feb 2021 20:44:42 GMT

First, my Discover Limit was 3K about 7 months ago, today it is 14K. They gave me an auto one day. I wake up and have an 8K limit(5 k increase). Then I ask 45 days later ask for an increase and they approve me another 2k now I am at a 10K limit. So few months go by and I am in Dec.

I did a balance transfer to checking in Dec 2020 for 9K and that time as I said my limit was 10K. I had a 450.00 used on the card when asked so I owed very near my entire limit after that BT.

I chose the no fee 3%(some months it's 4%) because I knew I was going to pay it back fast. Well I did pay it back fast, I paid the balance all the way down to 2K by next cycle.

The next day I ask for a CLI and I get 2 K more making my limit 12K. The very next day I ask for another Balance transfer and take another 9K. So now I owe 11k on a 12k limit. Again, I pay back by next cycle this time leaving a 3 k balance. Next day I ask for another CLI, they gave me another 2k so now my Credit limit is 14K and I owe 3K on the card.

I tell this story for two reasons, One to say Discover is the easiest to get CLI FOR ME. Heck, Cap one gave me 1K after having the same CL for years using it almost to the full limit, paying it off, having different balances not paying it all off, paying to zero, etc etc. Every combination of things to try to get a CLI. Finally they offer 1K so in the end I take it(that is another story) and know it will be 6 months to possibly get another.

Second, my question:

Anyone have any insight on to how many times I can ask for these balance transfers to checking in a row without raising some kind of red flag or the transfer being denied?

I was going to ask for another 9k today and thought maybe I should look into it. I may pay another 1k to 2K before I ask again simply so it shows I am making ground on reducing the balance and not having progressively higher balances every time I ask for BT.

The reason I ask for these BT to Checking was never to get a CLI, it was just a byproduct of paying it back soon, I think.

Re: Discover Balance Transfer Question

Rebuild2019 — Mon, 08 Feb 2021 20:50:47 GMT

I don’t know how many times you can do this without raising a red flag. I really want to say I was wondering myself as I read your post. I don’t quite understand DISCO. They are kinda hard to figure out. I’m going to follow someone may know the answer.

Re: Discover Balance Transfer Question

Remedios — Mon, 08 Feb 2021 20:56:51 GMT

@Mland-EC wrote:
First, my Discover Limit was 3K about 7 months ago, today it is 14K. They gave me an auto one day. I wake up and have an 8K limit(5 k increase). Then I ask 45 days later ask for an increase and they approve me another 2k now I am at a 10K limit. So few months go by and I am in Dec.

I did a balance transfer to checking in Dec 2020 for 9K and that time as I said my limit was 10K. I had a 450.00 used on the card when asked so I owed very near my entire limit after that BT.

I chose the no fee 3%(some months it's 4%) because I knew I was going to pay it back fast. Well I did pay it back fast, I paid the balance all the way down to 2K by next cycle.

The next day I ask for a CLI and I get 2 K more making my limit 12K. The very next day I ask for another Balance transfer and take another 9K. So now I owe 11k on a 12k limit. Again, I pay back by next cycle this time leaving a 3 k balance. Next day I ask for another CLI, they gave me another 2k so now my Credit limit is 14K and I owe 3K on the card.

I tell this story for two reasons, One to say Discover is the easiest to get CLI FOR ME. Heck, Cap one gave me 1K after having the same CL for years using it almost to the full limit, paying it off, having different balances not paying it all off, paying to zero, etc etc. Every combination of things to try to get a CLI. Finally they offer 1K so in the end I take it(that is another story) and know it will be 6 months to possibly get another.

Second, my question:

Anyone have any insight on to how many times I can ask for these balance transfers to checking in a row without raising some kind of red flag or the transfer being denied?

I was going to ask for another 9k today and thought maybe I should look into it. I may pay another 1k to 2K before I ask again simply so it shows I am making ground on reducing the balance and not having progressively higher balances every time I ask for BT.

The reason I ask for these BT to Checking was never to get a CLI, it was just a byproduct of paying it back soon, I think.

Please help me understand...are you doing BTs and paying BT fees on very large amounts just to get a CLI?

Re: Discover Balance Transfer Question

fiddycal — Mon, 08 Feb 2021 20:59:04 GMT

Congrats on the CLIs! I can't answer for certain, but I would say the worst that would probably happen is that they would stop offering you balance transfers for a while. That's what happened to me when I was using Disco BTs heavily, but I also was not paying them down nearly as quickly as you are. I can't imagine them denying a transfer that they have already offered to you just because you are transferring it to your checking account though since that is a legitimate option that they promote.

Re: Discover Balance Transfer Question

Rebuild2019 — Mon, 08 Feb 2021 21:03:09 GMT

I think the worst that could happen is DISCO requests the 4506-T tax form. https://ficoforums.myfico.com/t5/Credit-Card-Applications/DISCOVER-FORM-4506-T/m-p/5645421#M232780

Re: Discover Balance Transfer Question

Mland-EC — Mon, 08 Feb 2021 22:37:49 GMT

First there is no fee it's FREE. No fee at all unless you choose the 0% offer

I get a choice of a 0% for 12 months with a 3% upfront fee or 15 months at 3 to 4.99% the amount changes depending on month they offer and with NO FEE AT All, zero. There is no world for me where I can not pay the balance to zero in 15 months.

At least those are my offers. And as I said I never did this for a CLI, the CLI I think was just a by product of paying it back fast.

Anyhow, I did the BT because my income has been all in or nothing since Covid. So I take the large Balance transfer and use that money to pay off all my bills. If I get paid big as I have the last few months I pay it all back or most all of it. If I don't get paid much or at all, which has happend a few months during Covid(but luckily not since I did these BT"S) the worst thing that happens is I have a hi ratio on the Discover card. BUT, then I am only left with the small 3 to 4.99% interest or zero interest with the 3% fee . I have so far chosen the small interst rate with no fee becasue I know I will be paying off fast. In any case any of these options smashes my lowest card rate of 14.5% with AMEX, especially if I ever have to go to 2 months or more or worst the full 12 to 15 months. If I can no pay it wihtin the first cycle worst case all my cards are at zero and one is near tapped(this Discover) with the small interest rate.

Re: Discover Balance Transfer Question

Mland-EC — Mon, 08 Feb 2021 23:30:05 GMT

I often wonder about the 4506-T reuest. If it's for a CLI, Big deal. I can give the 4506 or not. If they want cancel my card without the info, which is unlikely, I would just send the 4506 in for sure and see what happened. Not sending it in gets a person nowhere but a canceled card in this case.

MY question for those in the know is this:

Since I use available income, which is described right in Discover terms, my taxes are not going to match exactly may be far off.

How do they handle this?

For example say a couple files separately. The husband's income can used as a basis for the credit card, I even asked them to clarify that. They said yes even my adult kids income income if they live in my home and I have access to thier money is available to me as stated income. I can use that money. So say I make 120K and I put down 190K on the Discover form, CLI or app , but say 70 K is the Spouses or adult child's on seprate taxes. Would they cancel the card over that on e the 4506 comes back?

Just wondering if the 4506_T is more to prove we actually work, have a constant job and that the number is not super far fetched saying I make 190 K and my return shows 50K. But even in that case , what if my daughter made 140 K, lived with me and we had joint checking account, I had access to her money etc. I am following their rules, but my income would be far short of what I put down.

Re: Discover Balance Transfer Question

FinStar — Mon, 08 Feb 2021 23:48:24 GMT

From the Discover 4506T data points, if reported income doesn't match, account gets closed. So far, out of the plethora of closures, only 1 member has reported their success in account reinstatement after providing supplemental, verifiable income information.

Re: Discover Balance Transfer Question

Remedios — Tue, 09 Feb 2021 00:10:54 GMT

@Mland-EC wrote:
I often wonder about the 4506-T reuest. If it's for a CLI, Big deal. I can give the 4506 or not. If they want cancel my card without the info, which is unlikely, I would just send the 4506 in for sure and see what happened. Not sending it in gets a person nowhere but a canceled card in this case.

MY question for those in the know is this:

Since I use available income, which is described right in Discover terms, my taxes are not going to match exactly may be far off.

How do they handle this?

For example say a couple files separately. The husband's income can used as a basis for the credit card, I even asked them to clarify that. They said yes even my adult kids income income if they live in my home and I have access to thier money is available to me as stated income. I can use that money. So say I make 120K and I put down 190K on the Discover form, CLI or app , but say 70 K is the Spouses or adult child's on seprate taxes. Would they cancel the card over that on e the 4506 comes back?

Just wondering if the 4506_T is more to prove we actually work, have a constant job and that the number is not super far fetched saying I make 190 K and my return shows 50K. But even in that case , what if my daughter made 140 K, lived with me and we had joint checking account, I had access to her money etc. I am following their rules, but my income would be far short of what I put down.

Discover will only entertain what can be proved via tax returns, and it's not done to verify employment, it is done to verify income.

There were a few exceptions where they accepted pay stubs during the time EQ had a backlog, but they haven't done that since.

EX offers Income Insight, which uses "estimated" income. Do not let the word estimate trick you, it's unbelievably accurate.

TU also offers Income and Employment Verification without the need for interaction with customer.

If you cannot prove it, don't put it.

Re: Discover Balance Transfer Question

Mland-EC — Tue, 09 Feb 2021 02:27:51 GMT

Well that is my point, we can prove it, but the 4506 is not the end all in the proof.

If the 4506 is the end all and only proof Discover will take they are not following what the actual application they give states, what the CLI form asks for ie child support and other, which they know are NOT on a tax form.

A credit card company only needs follow this, of course they can use their own rules that are more strict, but they legally have to take the spouse or partners income inot account:

If you’re over 21, you can count any sources of income to which you have “reasonable expectation of access,” including:

Part-time or full-time income
Alimony or child support
Gifts or trust fund payouts
Social Security payments or pensions
Retirement fund payments
Investment income

If you live with a partner or spouse, you can also count his or her income toward your “household income,” thanks to a Consumer Financial Protection Bureau (CFPB) amendment in 2012.

Some of these things are NOT ON a tax return, especially if you file separately. EVERY card can look at it different of course, but for them to look at a 4506 and then not look at the spouse income is ludicrous ptnally illegal on their part. So for those CC companies that ask for the 4506 and then take the card away, I say no big deal not dealing with them. You did nothing wrong if you stated your "reasonable accessable income", but it 's not all on your tax return. It is not the income they asked for at the start of the app. I never had a credit card app I can remember that stated please only state income shown on your tax return. If Credit cards did this I am betting there would be far less confusion and far less time they need follow up and ask for the 4506..

I will do as I always have done, this being my 40th year with a credit card, put down my verifiable Income and not just what is on my tax returns thatwoul show up on a 4506. If they take the card from me becaue of that great, they should of asked for income only shown on my tax return. Some other CC company can get my interest.

I am betting there is more to people being asked for these 4506 and then the card taken away. I had to give a 4506 to AMEX once in 2018 becasue of an 8000.00 purchase. At that time I didn't know about credit gardening, I thought the 4506 was just to verify I worked. It never occurred to me they even looked at the exact amount. One day I found my card locked, my interest rate raised to 25%! and them asking for a 4506, I was a bit miffed. I sent the 4506 in, awhile later, maybe a month, they turned the card on, raised the limit by 5K and lowered the interest rate to 14.9%. I can assure everyone my Taxes didn't mirror what I had on the application. I am betting it was 60K difference at that time. They never asked for anything else. I kept my mouth shut. Only recently after being on the forum the last 6monthsI thought maybe I dodged a bullet.

Re: Discover Balance Transfer Question

AverageJoesCredit — Tue, 09 Feb 2021 07:12:26 GMT

@Mland-EC wrote:
First, my Discover Limit was 3K about 7 months ago, today it is 14K. They gave me an auto one day. I wake up and have an 8K limit(5 k increase). Then I ask 45 days later ask for an increase and they approve me another 2k now I am at a 10K limit. So few months go by and I am in Dec.

I did a balance transfer to checking in Dec 2020 for 9K and that time as I said my limit was 10K. I had a 450.00 used on the card when asked so I owed very near my entire limit after that BT.

I chose the no fee 3%(some months it's 4%) because I knew I was going to pay it back fast. Well I did pay it back fast, I paid the balance all the way down to 2K by next cycle.

The next day I ask for a CLI and I get 2 K more making my limit 12K. The very next day I ask for another Balance transfer and take another 9K. So now I owe 11k on a 12k limit. Again, I pay back by next cycle this time leaving a 3 k balance. Next day I ask for another CLI, they gave me another 2k so now my Credit limit is 14K and I owe 3K on the card.

I tell this story for two reasons, One to say Discover is the easiest to get CLI FOR ME. Heck, Cap one gave me 1K after having the same CL for years using it almost to the full limit, paying it off, having different balances not paying it all off, paying to zero, etc etc. Every combination of things to try to get a CLI. Finally they offer 1K so in the end I take it(that is another story) and know it will be 6 months to possibly get another.

Second, my question:

Anyone have any insight on to how many times I can ask for these balance transfers to checking in a row without raising some kind of red flag or the transfer being denied?

I was going to ask for another 9k today and thought maybe I should look into it. I may pay another 1k to 2K before I ask again simply so it shows I am making ground on reducing the balance and not having progressively higher balances every time I ask for BT.

The reason I ask for these BT to Checking was never to get a CLI, it was just a byproduct of paying it back soon, I think.

Simply put, you can do as many bts as you want , so long as they are offered, until you cant. Once the offer is no longer there, you cant do a bt. Many of us have have had our offers dry up , whether it be due to Covid or actually having the offer and using it but paying back too fast , or other unknown reasons. Count yourself lucky you are still able to do so.

Re: Discover Balance Transfer Question

Mland-EC — Wed, 24 Feb 2021 14:01:44 GMT

Well Discover did grant another transfer to checking, that make 3 in a row right now. I will post on whether they raise me another 2K and grant me a 4th transfer next cycle.

I checked every other card and not a single one is offering any kind of balance transfer at all for me under any terms.

Re: Discover Balance Transfer Question

Anonymous — Wed, 10 Mar 2021 17:11:00 GMT

I did a BT with them in Jan, have paid most of it off (card will be $0 balance tomorrow), and want to request a CLI before I do a second BT with them this month. I'm stuck at a $5300 limit (card age: 6 yr 3 mth) and only transferred $1590 (30% of Disco CL). I'm also doing the 4.99%/$0 fee because I'm paying it off quickly. I was declined a CLI in January partially due to card inactivity so I've been using it for daily purchases since.

@Mland-EC Did you request the CLI when you had a balance or after you paid it off? (Phone or app/website?) How much was your card utilized after transfer? 90%, it sounds like?

Re: Discover Balance Transfer Question

NRB525 — Thu, 11 Mar 2021 04:07:28 GMT

@Mland-EC wrote:
Well Discover did grant another transfer to checking, that make 3 in a row right now. I will post on whether they raise me another 2K and grant me a 4th transfer next cycle.

I checked every other card and not a single one is offering any kind of balance transfer at all for me under any terms.

Over how many months have these three BT's been done? It has been working to get CLI however I will guess it won't work much longer.

A large credit line is fun to see on the statement but it is a mirage, nothing more than a pretend number.

Regarding 4506T requests, that is just one factor in the CCC decision whether they want to do business with any particular customer. If the CCC decides the risk is too great ( such as frequent cycles on the limit to try to raise the credit limit or patterns of spend ) then the CCC may decide to reduce risk. It may be unacceptable to the cardholder, but credit cards are not a guarantee, and the cardholder really has no legal recourse.

Re: Discover Balance Transfer Question

Mland-EC — Mon, 05 Jul 2021 16:52:11 GMT

Yes, I ask after I paid it off. I am stuck at 14 k for quite awhile now.

Yes, I went over 90% but I never went to the next billing statment with more than 28%, sometimes as low as 8%.

Today I asked for my 8th balance transfer to checking in a row. So far they havn't called me on it. Honestly most of my cards don't give me great rewards so paying the 43.00 interest on these transfer per month(what they cost me on average so far with these BT) is worth it for me mostly becaue of the way my business works. I get paid, but don't get the money for 30 days, but I need put out money for material etc before that 30 days. The reason I just don't use the card for every purchase and prefer the balance transfers is simple. The 4.99% interest rate with no fee is less than the interst rate they would charge me on any remaing balance 4 times over. In other words if Discover just charged me 4.99% on all transactions all the time I very well might not do these balance transfers at all. Plus, every other card I use charges me 16.99 to 22.99 so doing these transfers means I do not use those cards very much at all. In a worst case scnerios and one of my payments from a cleint did not come through in the 30 days and I had to carry that 10K Balance Tranfer to the next billing cycle that 4.99% saves me. That's my rational for doing these BT, not to get higher limits. As I said I am stuck at the 14K with Dicscover anyhow right now. I will keep doing the BT to checking until they stop me and post at what point that is. So far 8 BT to checking ranging from 9000 to 11000 and going strong.

AS far as higher limits my higher credit limits across the board have allowed me to carry a 19K balance on all cards and have a 780 score, my highest ever as of a few days ago The. The last time I carried 19K I was at 70% utiilization plus and my score was like a 631. So the higher credit limits are no mirage for me, they actully allow me to carry a balance without me nosediving my FICO score.

I have been assisting my 19 year old twins, they both have 2 credit cards now and they have a 721 and 726 FICO. Their discover cards with with no security deposit have gone to 3500.00 limits in 11 months. We asked for thier Discover cards on their 18th B-day as students. In another month we will go for another card for them and every 6 months we will ask for CLI for them. Had I had help like that at 18 I am sure my score would be in the 800's. I just didn't know better or know about utilzation. I would use a card pay it to zero never asked for higher CLI and sometimes I would carry a 90% utilization never knowing how it effected my score and did that for years. It wasn't unitl my mother in law who died a multimillioniare could hardly get a home loan. She ended up saying forget it buying her last home cash because she had a low score, it was a joke. So I thank this forum for all the information, it allowed me and my family to rock our credit scores!

Re: Discover Balance Transfer Question

DaveInAZ — Mon, 05 Jul 2021 19:17:32 GMT

@Mland-EC wrote:
Well Discover did grant another transfer to checking, that make 3 in a row right now. I will post on whether they raise me another 2K and grant me a 4th transfer next cycle.

I checked every other card and not a single one is offering any kind of balance transfer at all for me under any terms.

First of all, quick BTs re-pays does work for getting a nice CLI. I did a $4500 BT in 2018, but for reason I now forget I called in to verify the BT request. The rep misunderstood and duplicated the $4500 BT, for a total of $9k on a $10,600k CL. I sure didn't want that to report to the CRAs so I repaid $6k within a week. (This was the 0% fee, 4.99% APR offer) The next time I did a CLI request I got $4500, to my current limit of $15,100, which is fine for my income.

Capital One used to be my go-to for BTs because the 1.5% rewards on my Quicksilver or Spark select doesn't cut it any more. But those dried up, haven't had a BT offer since early 2020; I'm going to start closing them before they do for non-use. Bank of America Cash Rewards & Travel Rewards BT offers dried up last year as well, but lately I've been getting nice BT offers regularly.

Re: Discover Balance Transfer Question

Misfit88 — Sat, 17 Jul 2021 11:23:05 GMT

Can anyone help me out with this balance transfer question? I recently got approved for a Discover card with 0% APR on balance transfers for 14 months. They gave me a starting limit of 6500$. I have a BoA Cash Rewards card with a balance of 5400$ @ 14.24%. I got the Discover card specifically for balance transfers. I know my Discover account is still new, part of me wants to transfer the entire balance and the other part of me wants to break it up into 3 separate transfers, so that I won't go over 30% utilization on the discover card. I honestly don't want to transfer the entire balance. I think it would be smarter to break up the transfers into 3s. 1950$, 1950$, then 1500$. That way I won't ever go over 30% on the Discover card. It will take me 4-5 months to pay down the entire balance. Any suggestions?

Re: Discover Balance Transfer Question

Anonymous — Sat, 17 Jul 2021 13:37:17 GMT

I transfer up to ~65% util with my balance transfers but previously all of my cards were maxed out so I'm also not creating a new highest reported balance on the card by doing so (which to my understanding doesn't have any effect im amd of itself).

Yes, you'll take a hit but as your other card goes down, it won't hurt as much. The impact will also be temporary.

If you're a finances > FICO kind of person, the more you transfer sooner, the more you save overall. Within the time period you're discussing, it isn't thousands, but it is something.

How much to transfer depends on what is important to you!

FWIW, right after or shortly before paying off each BT, I have requested CLIs from Discover so that I can do another BT and move more over and been granted one regularly! Worth trying.

Re: Discover Balance Transfer Question

Mland-EC — Sat, 17 Jul 2021 16:33:21 GMT

It depends. What is the credit limit on the BoA Cash Rewards card with a balance of 5400$. If its only a 6000.00 BOA limit you may as well move it all over to the 0% because in 2 months your score would still be higher than it wa. You will owe no more money total than you do now, but have a lower utilization and with a saving in interest with the balance being on the new card. If your BOA has a higher limit , say 10K or so and/or you are going for highest monthly FICO score than work it out so both cards are at about 28% as soon as possible.

I am on my 8th BT(not for a new card of course) in a row and it was approved, but I noticed even though I have a great track record Discover changed the terms of the BT to 6.99% from 3.99% with no fee and shortened the length from 18 to 15 months as one option or 0% interest wiht a 5% fee instead of 0% and 3.99% as it was for the previous 7 BT's. So they are either tired of me paying it of too quickly or possibly they raised the BT terms for everyone, that I dont know.

Re: Discover Balance Transfer Question

Misfit88 — Sat, 17 Jul 2021 17:26:26 GMT

The CL on the BoA CR card is 10,200$. I owe 5,400$. The interest is 14.24%. If I transfer the entire balance to the Discover card, that would put my utilization on that card at around 87%. I don't want the utilization that high since I just got the card, and I don't want Discover to flag my account and ask for the 4506-T form. I'm just trying to play it safe. I understand what your saying, but I'm a little nervous lol. It would make since though because my total utilization rate would decrease since I have a new card with 6500$ CL, and the BoA would be at 0$, but the balance of 5400$ would be on the Discover card. I'll have it paid off within 4 months.