topic Re: Should I app for balance xfer cards? in Credit Cards

Should I app for balance xfer cards?

executiveassist — Mon, 07 Aug 2023 19:33:54 GMT

Hi,

I opened a lot of cards last September so I've been gardening but I recently bought a home in May and the repairs have drained my savings.

I dont have any equity to do a HELOC.

My cards are at their limit which caused my score to go down. Is there any hope of getting a 0% interest card and doing balance transfers?

I have an account with Navy Federal that I opened earlier this year, I did previously include them in a BK 7 years ago, they told me I had to pay the balance to be eligible to borrow so I did that a few months ago. I have been scared to apply since my credit took a hit my Experian score is around 630 the others are probably the same.

I have gotten communication from US Bank to apply for their card with an invite code but I think that is just marketing from what I can tell. I got an offer to apply for a Venmo card but Synchrony always denies me I dont know maybe I have an old collection with them from what I was in my 20s? I cant remember if I ever burned them. I had collections with Capital One but paid them off about 2 years ago, I get offers from them but I am scared to get anothe $500 credit limit. So far my highest limit is $2500 from Discover. I had an offer from Chase for their new lower tier card but I know they are picky about how many cards you open in the last 2 years.

Everytime I do the pre-approval websites for Amex and Apple Card I get no offers.

The Home Depot (citi) $500

Target ($1000)

US Bank $500

Amex $1000

Discover $2500

Mission Lane $600

Bank of America (secured) $1,000

Kohls $600

Unity One Credit Union $500

Should I go ahead and try?

Re: Should I app for balance xfer cards?

Aim_High — Mon, 07 Aug 2023 20:03:27 GMT

@executiveassist wrote:

Is there any hope of getting a 0% interest card and doing balance transfers?
... Should I go ahead and try?

I'm sure this isn't what you want to hear, @executiveassist, but my answer is a definite no. I'll highlight some of the factors that stand out to me.

@executiveassist wrote:

I opened a lot of cards last September

I recently bought a home in May

My cards are at their limit (*TCL of cards is $8,200)

I am scared to get anothe $500 credit limit. So far my highest limit is $2500 from Discover.

which caused my score to go down ... my Experian score is around 630 the others are probably the same.

Everytime I do the pre-approval websites for Amex and Apple Card I get no offers.

I'm not sure what constituted "a lot of cards" but it sounds like you may have a high number of inquiries, especially combined with the new mortgage. Your scores in the low 600's exclude a lot of lenders or would likely contribute to those undesirable lower CL approvals, which wouldn't help much if any. The lack of preapprovals is also telling about the odds of success with new cards as-a-whole. If your utilization is high relative to TCL, you're somewhere near $8K in debt. High utilization and that much debt decreases your approval odds. And you're highly unlikely to qualify for anywhere near that amount of new credit with the profile you disclosed. You'd need over 3x your current highest CL to cover that debt on a new card.

My recommendation is to grin-and-bear-it for the short haul with the situation. Work out your cash flow numbers, see how much you can afford to pay towards debt, and work out a repayment strategy. Our forum members could give some suggestions if you supply more details including some budget factors; balances; APRs, etc. Look for ways to either increase income or decrease expenses so-as to free up money for debt repayment. Lowering utilization is your top priority.

Likewise, allowing inquiries and new accounts to further age off will help your situation, so focus on the debt first.

Good luck and let us know what we can do to help.

In a few months, as you lower utilization and profile ages, hopefully scores will start to grow into the upper 600's or around 700. If you haven't paid off the debt by then, you may be in a better situation to seek out low APR BT offers on a new card, if still needed.

Re: Should I app for balance xfer cards?

RSX — Mon, 07 Aug 2023 20:18:39 GMT

^^agreed with above

is there an opportunity for a second job until you get some of the maxed out cards paid down>?

i know how tough it can be when you first get a house - it seems like everything needs to be done right away, and the spending can go a little bit crazy

1. focus only on the house items that HAVE to be done

2. try to make some extra cash until your credit issues settle down

Good luck to you!

Re: Should I app for balance xfer cards?

SouthJamaica — Mon, 07 Aug 2023 20:25:20 GMT

@executiveassist wrote:
Hi,
I opened a lot of cards last September so I've been gardening but I recently bought a home in May and the repairs have drained my savings.
I dont have any equity to do a HELOC.
My cards are at their limit which caused my score to go down. Is there any hope of getting a 0% interest card and doing balance transfers?
I have an account with Navy Federal that I opened earlier this year, I did previously include them in a BK 7 years ago, they told me I had to pay the balance to be eligible to borrow so I did that a few months ago. I have been scared to apply since my credit took a hit my Experian score is around 630 the others are probably the same.

I have gotten communication from US Bank to apply for their card with an invite code but I think that is just marketing from what I can tell. I got an offer to apply for a Venmo card but Synchrony always denies me I dont know maybe I have an old collection with them from what I was in my 20s? I cant remember if I ever burned them. I had collections with Capital One but paid them off about 2 years ago, I get offers from them but I am scared to get anothe $500 credit limit. So far my highest limit is $2500 from Discover. I had an offer from Chase for their new lower tier card but I know they are picky about how many cards you open in the last 2 years.

Everytime I do the pre-approval websites for Amex and Apple Card I get no offers.
The Home Depot (citi) $500
Target ($1000)
US Bank $500
Amex $1000
Discover $2500
Mission Lane $600
Bank of America (secured) $1,000
Kohls $600
Unity One Credit Union $500

Should I go ahead and try?

At this point I think you would be wasting hard pulls to apply for credit cards. You need to get your utilization down, and scores up, first.

What you might do is start scouting credit unions which offer non-rewards platinum cards with no balance transfer fee (some also have no cash advance fee). It's too early for you to be applying for the credit cards, but it's not too early for you to be opening up some credit union memberships with these institutions, with an eye towards applying for the credit cards in the future.

Re: Should I app for balance xfer cards?

ForwardLooking — Mon, 07 Aug 2023 20:52:27 GMT

Agree with the others -- time to slow down in applying for credit and start working on a budget that allows you to pay down debt first and foremost. There is obvisouly a reason you are not getting pre-approved that needs to be addressed.

My personal oppinion is that since you have a lot of lower limit cards, start a debt snowball with them. Those $500 and $600 dollar cards should be easy to focus on to start with. Just pick one and start chipping away. By the time you get them paid down enough to be able to be approved for a 0% balance transfer card, you will probably realize you don't need it because half of your debt would have been paid down.

Re: Should I app for balance xfer cards?

executiveassist — Mon, 07 Aug 2023 22:35:00 GMT

Thank you, you are right I need to get myself out of the 8k before I obtain more credit.

Re: Should I app for balance xfer cards?

executiveassist — Mon, 07 Aug 2023 22:35:19 GMT

Thank you so much!

Re: Should I app for balance xfer cards?

executiveassist — Mon, 07 Aug 2023 22:37:25 GMT

OK, its so frustrating. My credit does not bounce back ask quickly as other people. I had a BK over 7 years ago but they stay on for 10 years now. all collections and negative accoutns have been paid for over 2 years. I just starting using my CC's after I closed on my home because I wanted my scores to be as high as possible for my loan. I just seem to be stuck. Even if the cc's are paid off my score only ever gets to a 660.

Re: Should I app for balance xfer cards?

executiveassist — Mon, 07 Aug 2023 22:38:02 GMT

Yes, I will do that method.

Re: Should I app for balance xfer cards?

ForwardLooking — Tue, 08 Aug 2023 01:05:46 GMT

@executiveassist wrote:
OK, its so frustrating. My credit does not bounce back ask quickly as other people. I had a BK over 7 years ago but they stay on for 10 years now. all collections and negative accoutns have been paid for over 2 years. I just starting using my CC's after I closed on my home because I wanted my scores to be as high as possible for my loan. I just seem to be stuck. Even if the cc's are paid off my score only ever gets to a 660.

Hang in there, I understand the frustration. I had a bad hand delt to me during the covid period and I am on the rebound and rebuild phase just as you are. I had to accept that there were things I could directly do to help my credit situation, like paying down debt and older collections, but I also had to realize and accept that there were things outside of my control and I would just have to be patient and let time handle. Sometimes, at this point, I feel like I am watching paint dry or am waiting for water to boil. You have a house now and you have some credit cards to work with. Show the world you are responsible with your debt with them and two years from now you will be looking back and saying, "Man, I have come so far!"

Re: Should I app for balance xfer cards?

pbass6811 — Wed, 09 Aug 2023 05:07:03 GMT

@executiveassist wrote:
Yes, I will do that method.

I totally get your frustration. It's maddening when you pay down a balance and your score doesn't change. While my situation is slightly different(FICO 8s are all 760-780), I also understand the anxiety about applying for a card and not being sure about the SL, much less just the overall approval.

With your situation, the advice from @SouthJamaica is excellent! Getting in good with a couple of local credit unions could really benefit you severalfold in the long run. I'm trying that method myself and I think it'll payoff in a few months! Good luck on the rebuild! You got this...