topic BT To Help Util?? in Credit Cards

BT To Help Util??

Anonymous — Sun, 10 Mar 2013 22:00:46 GMT

I have managed to get in a scenerio where I cannot get my util down on my Discover card. It will take ahwile and I do NOT want that high util on my CR if at all possible. I am holding at 49% on an $8.5k CL. Now, is there a way I can use my BofA Visa Signature to help me? The BofA does NOT report a CL but I have a $5k CL.

Is it a wise option to BT to the BofA and wipe my Discover balance off? I know 49% looks better on $8.5k than what 84% would on $5k. What am I looking at if I BT $4200 from Discover to BofA? Will the BofA be factored into util, will it add a CL to my card since it shows $0 now, have I maxed the BofA card out? I was thinking Signature cards were not included in FICO util, but I am not so sure. Just how does a $0 CL reporting Signature card work? Thanks for any and all help!!

Re: BT To Help Util??

LS2982 — Sun, 10 Mar 2013 22:03:36 GMT

@Anonymous wrote:
I have managed to get in a scenerio where I cannot get my util down on my Discover card. It will take ahwile and I do NOT want that high util on my CR if at all possible. I am holding at 49% on an $8.5k CL. Now, is there a way I can use my BofA Visa Signature to help me? The BofA does NOT report a CL but I have a $5k CL.

Is it a wise option to BT to the BofA and wipe my Discover balance off? I know 49% looks better on $8.5k than what 84% would on $5k. What am I looking at if I BT $4200 from Discover to BofA? Will the BofA be factored into util, will it add a CL to my card since it shows $0 now, have I maxed the BofA card out? I was thinking Signature cards were not included in FICO util, but I am not so sure. Just how does a $0 CL reporting Signature card work? Thanks for any and all help!!

Are you paying interest in this Discover debt??

Re: BT To Help Util??

DaveSignal — Sun, 10 Mar 2013 22:10:37 GMT

If you card does not report a limit, it doesn't factor into util. It is like having a hidden tradeline where you can carry a balance with no effect on your FICO score. 84% is a pretty high actual utilization though, as appearing to BoA. Don't miss any payments and make sure all of your tradelines are in good order so that you don't trigger a financial review.

Re: BT To Help Util??

Anonymous — Sun, 10 Mar 2013 22:12:04 GMT

No, there is 0% interest on the Discover card. I have a BT offer of 0% for the BofA card as well. It is just killing my knowing that I am stuck with 42% util on that one card. I had hoped the BofA Signature would be obsolete in FICO util scoring, but I do not know how signature cards work with a balance reporting when the CL reports $0.

If I BT $4200 I know then my High Balance would be $4200 on the BofA. That just seems terrible on card where no limit is reported. To me that would make a Signature card not very good to use because you'd always be "maxed" out if a balance ever reported? Thanks.

Re: BT To Help Util??

zerobacan — Sun, 10 Mar 2013 22:14:34 GMT

How about a Personal Loan, you get the debt out of your uti and start making montly payments to it.

Re: BT To Help Util??

Anonymous — Sun, 10 Mar 2013 22:14:51 GMT

Perfect! I will surely consider doing the BT to BofA. Would you recommend calling BofA and telling them what I plan to do to maybe "ease" the big $4200 BT to only a 5K CL?

Re: BT To Help Util??

DaveSignal — Sun, 10 Mar 2013 22:15:39 GMT

@Anonymous wrote:
No, there is 0% interest on the Discover card. I have a BT offer of 0% for the BofA card as well. It is just killing my knowing that I am stuck with 42% util on that one card. I had hoped the BofA Signature would be obsolete in FICO util scoring, but I do not know how signature cards work with a balance reporting when the CL reports $0.

If I BT $4200 I know then my High Balance would be $4200 on the BofA. That just seems terrible on card where no limit is reported. To me that would make a Signature card not very good to use because you'd always be "maxed" out if a balance ever reported? Thanks.

Is there a reason you need your util low at this point in time? Does BoA charge a BT fee? Unless you are buying a house or applying for new prime cards, then I would just leave the balance on your 0% Discover and pay it off before the promotion ends.

Re: BT To Help Util??

Anonymous — Sun, 10 Mar 2013 22:16:53 GMT

I thought about a loan but I just purchased a new truck 3 weeks ago through my CU. I don't want to really ask for another loan! I'm worried enough now with the new auto loan and my high util that I may get negative actions from a few creditors. Barclay, Citi, etc.

Re: BT To Help Util??

DaveSignal — Sun, 10 Mar 2013 22:17:31 GMT

@Anonymous wrote:
Perfect! I will surely consider doing the BT to BofA. Would you recommend calling BofA and telling them what I plan to do to maybe "ease" the big $4200 BT to only a 5K CL?

It can't hurt to call and ask about it first.

Re: BT To Help Util??

Anonymous — Sun, 10 Mar 2013 22:19:49 GMT

Will Discover care one way or the other if I do a BT? Does it reflect bad on my relationship with Discover to take my balance to BofA, say for a future CLI?

Re: BT To Help Util??

dabrian — Sun, 10 Mar 2013 22:20:45 GMT

Why would you get a loan with interest when you have 0% in the Discover?

Re: BT To Help Util??

DaveSignal — Sun, 10 Mar 2013 22:25:28 GMT

@Anonymous wrote:
Will Discover care one way or the other if I do a BT? Does it reflect bad on my relationship with Discover to take my balance to BofA, say for a future CLI?

Discover doesn't care what you do, as long as you pay at least your minimum due each month. BoA will give you the BT, but you should find out if they will charge a BT fee, which would be paying extra money just to lower your FICO util.... is it worth it? As I asked before, why do you need your util low at this point in time? Are you planning on a new application for credit? You aren't going to cause any adverse action and it will cost you no money (you are paying 0% interest) if you just let things be.

Re: BT To Help Util??

Gunnar419 — Sun, 10 Mar 2013 22:30:09 GMT

Yeah, you might be too worried about the util on that Discover card. In my experience (which goes back nearly two decades with Discover), that's a very usage-tolerant card. I've been as high as 45% util on that one and it's had no effect on my relationship with them. In fact, my util was up there when they gave me one of my biggest auto-CLIs.

I can't say whether you should BT to that BoA Signature because that's something I have no experience with. But I can definitely say there's no need to panic about that util on Discover.

Re: BT To Help Util??

Anonymous — Sun, 10 Mar 2013 22:39:07 GMT

I have 4 recently opened accounts in the last 6 months. I fear the 42% util on the Discover will give me AA if any of the other ones decide to soft my report. Plus, I added a 20K auto loan right before the 42% util hit my report. I now have a huge debt with so many new accounts. It just makes me uncomfortable to have high util like it is and being fairly new to my creditors and my AAoA is very short now, too.

I agree on the 0% interest I have on my Discover now. I also have 0% on the BT offer from BofA. There is a fee and should cost me about 90 bucks to do it. Yes it is $90, but I still feel like that is a safer way to go than ride 42% on my Discover card for months, have my FICO tank more and risk my creditors reducing my CL's, etc. It will take me awhile to get back down to 1% on the Discover unless I BT!

If BofA Signature isn't factored into util, seems like that is the way to go besides throwing $90-100 away for the BT.

Re: BT To Help Util??

DaveSignal — Sun, 10 Mar 2013 22:57:50 GMT

Well, you are always taking some kind of risk when opening many new accounts at the same time. Personally, I would keep my $90 and make use of Discover's 0% purchase APR promotion, but if it makes you more comfortable and you think the peace-of-mind is worth it, then spend it and do the BT.