topic Re: Balance Transfer Options in Credit Cards

Balance Transfer Options

mkb2 — Mon, 13 Jan 2014 07:39:38 GMT

So I recently applied for and got approved for a new credit card with Citibank. When I applied, I anticipated it would be based on a 720-740 score....right now on myfico.com it shows 727, 742 (day of application) and 720 (last week) as the three most recent scores using Equifax. I wanted a mileage card because I have a lot of purchases my company reimburses me for that I pay off immediately, so I wasn't looking in particular for a balance transfer card. But the card had a balance transfer option and I was anticipating that I would transfer two older card balances to this new card after I was approved since its low-end interest rate was 13.99%, as both of these other cards are 18%. I figured one card that lowered my interest a little and gave me miles for the $thousands a month I get reimbursed for was a smart compromise.

Well when I got my card, it was approved at 21.99% interest based on a score of 696, which said it was from Experian!!! So now I feel kinda stuck...I really wanted to lower my interest rate on these older cards and now I'm real nervous about having too many pulls on my credit and getting dinged for too many cards if I were to apply so soon for another credit card. I co-signed on something in Feb. 2013 so I've already had two pulls now in the last 12 months and two others in the last 24.

What are some expert recommendations here? I'm wondering when would be the best time to apply for a real 0% balance transfer card so that it can start aging and reduce the interest I pay, or if it's better to sit still and slowly pay off the two cards with balances over time. I'd really like to have my score in great shape by 2016 so I can get a good mortgage.

As background, I have two late payments in 2009 (from when a former employer didn't pay me for six months, b*s%a$d) but otherwise have no other marks on my credit. I have four or five other revolving credit cards (department store 0% interest specials) only one of which has a balance, plus a car loan.

Thanks in advance for your tips.

Re: Balance Transfer Options

Creditaddict — Mon, 13 Jan 2014 07:53:52 GMT

Not sure I'm following.

are you looking to transfer some debt from 2 accounts? How much?

or are you looking for good rewards card because you can charge your company expenses of about $1k a month and then they refund you?

although the new citi card is 22% that is probably after promo of 0% for a year or more? No?

and to address your INQ and new accounts... Unless you are applying for mortgage in next year you don't need to be so worried about them, especially 2!

i have about 10 in last 2 months! You have 3 credit reports, so you have at least 1 report that is probably empty for inq's!

what is the limit you were approved for?

Re: Balance Transfer Options

mkb2 — Mon, 13 Jan 2014 08:20:44 GMT

Yes..Transfer two cards with about $2000 balance each ($4k) racking up interest at 18%. I got the AAdvantage card because I have $3k average in business expenses I get reimbursed for monthly and the card I use for business was giving me no benefits. Now I'm gonna get 40,000 miles or so per year from this card, plus the bonuses. NO. There is no 0% promo period. It's 21.99% from day one. Credit line is $8,000. Hopefully that explains things.

Re: Balance Transfer Options

Creditaddict — Mon, 13 Jan 2014 08:29:11 GMT

@mkb2 wrote:
Yes..Transfer two cards with about $2000 balance each ($4k) racking up interest at 18%. I got the AAdvantage card because I have $3k average in business expenses I get reimbursed for monthly and the card I use for business was giving me no benefits. Now I'm gonna get 40,000 miles or so per year from this card, plus the bonuses. NO. There is no 0% promo period. It's 21.99% from day one. Credit line is $8,000. Hopefully that explains things.

Okay great, you should almost never make a bt card an every day card too.

so since this new AA covers you great for your daily spending now let's take care of your bt needs for your other 2 cards.

what cards are they?

if neither are chase, I would 100% apply for chase slate because it's % for 15 months and has no fees to transfer.

2nd choice would be theduckcard which has been giving large cl's out and0% for 12 months

Re: Balance Transfer Options

mkb2 — Mon, 13 Jan 2014 08:36:37 GMT

Neither are Chase. The Slate card WAS the one I've been looking at.

So your opinion is "Why are you worried about 2 pulls? Get that Slate card ASAP and move from 18% ot 0%!"

Can I get some second opinions? Remember, I JUST had this pull from Citibank on Nov. 30, 2013. If I apply for Slate, that'll make it three pulls in 12 months and isn't Chase going to be thinking "Why does this nutcase think he needs another credit card when he just got one 6 weeks ago?"

Re: Balance Transfer Options

Creditaddict — Mon, 13 Jan 2014 08:48:28 GMT

@mkb2 wrote:
Neither are Chase. The Slate card WAS the one I've been looking at.

So your opinion is "Why are you worried about 2 pulls? Get that Slate card ASAP and move from 18% ot 0%!"

Can I get some second opinions? Remember, I JUST had this pull from Citibank on Nov. 30, 2013. If I apply for Slate, that'll make it three pulls in 12 months and isn't Chase going to be thinking "Why does this nutcase think he needs another credit card when he just got one 6 weeks ago?"

No offense to you because I reD it all the time but I'm always surprised when people are more concerned about an inquiry or average age of account then continuing to pay high interest when they could be paying NONE... You have your priorities wrong even if 3 inq's was epic but it's not so it's win win to apply!

Re: Balance Transfer Options

longtime_lurker — Mon, 13 Jan 2014 08:49:09 GMT

@mkb2 wrote:
Neither are Chase. The Slate card WAS the one I've been looking at.

So your opinion is "Why are you worried about 2 pulls? Get that Slate card ASAP and move from 18% ot 0%!"

Can I get some second opinions? Remember, I JUST had this pull from Citibank on Nov. 30, 2013. If I apply for Slate, that'll make it three pulls in 12 months and isn't Chase going to be thinking "Why does this nutcase think he needs another credit card when he just got one 6 weeks ago?"

I'll second creditaddict's suggestion. If you're approved, it'll save you a lot of money.

Re: Balance Transfer Options

sdwalt — Mon, 13 Jan 2014 10:46:44 GMT

If you carry a balance, zero percent is well...the bomb.

Re: Balance Transfer Options

takeshi74 — Mon, 13 Jan 2014 14:46:33 GMT

@mkb2 wrote:
I'm wondering when would be the best time to apply for a real 0% balance transfer card so that it can start aging and reduce the interest I pay, or if it's better to sit still and slowly pay off the two cards with balances over time. I'd really like to have my score in great shape by 2016 so I can get a good mortgage.

As background, I have two late payments in 2009 (from when a former employer didn't pay me for six months, b*s%a$d) but otherwise have no other marks on my credit.

Absolute best would be when your lates are off your reports and your utilization is optimized. That said, you might not be able to get them removed and you might not want to wait for them to fall off if reducing interest paid now is a priority. Might as well apply for another at this point to see if you can get a BT offer.

@mkb2 wrote:
Can I get some second opinions? Remember, I JUST had this pull from Citibank on Nov. 30, 2013. If I apply for Slate, that'll make it three pulls in 12 months and isn't Chase going to be thinking "Why does this nutcase think he needs another credit card when he just got one 6 weeks ago?"

What underwriting thinks is anyone's guess and one's credit plays a large part as well. Inquiries aren't as a big of a deal with an established credit history and thick file. They can be more of an issue for thinner files. Either way, they mostly lose their impact after a year and fall off after two. People routinely app for multiple cards within several months. I apped for 3 cards in 3/2013. Not saying that it won't be an issue for you but we really can't to tell you one way or another and the creditor and product you're applying for will also play a role. Find one that doesn't pull Experian if you can.

It's really your call: pay the interest you're paying now or try for a BT card to help out now. Pick your poison.

Re: Balance Transfer Options

FinStar — Mon, 13 Jan 2014 16:03:51 GMT

@takeshi74 wrote:
@mkb2 wrote:
I'm wondering when would be the best time to apply for a real 0% balance transfer card so that it can start aging and reduce the interest I pay, or if it's better to sit still and slowly pay off the two cards with balances over time. I'd really like to have my score in great shape by 2016 so I can get a good mortgage.

As background, I have two late payments in 2009 (from when a former employer didn't pay me for six months, b*s%a$d) but otherwise have no other marks on my credit.
Absolute best would be when your lates are off your reports and your utilization is optimized. That said, you might not be able to get them removed and you might not want to wait for them to fall off if reducing interest paid now is a priority. Might as well apply for another at this point to see if you can get a BT offer.

@mkb2 wrote:
Can I get some second opinions? Remember, I JUST had this pull from Citibank on Nov. 30, 2013. If I apply for Slate, that'll make it three pulls in 12 months and isn't Chase going to be thinking "Why does this nutcase think he needs another credit card when he just got one 6 weeks ago?"
What underwriting thinks is anyone's guess and one's credit plays a large part as well. Inquiries aren't as a big of a deal with an established credit history and thick file. They can be more of an issue for thinner files. Either way, they mostly lose their impact after a year and fall off after two. People routinely app for multiple cards within several months. I apped for 3 cards in 3/2013. Not saying that it won't be an issue for you but we really can't to tell you one way or another and the creditor and product you're applying for will also play a role. Find one that doesn't pull Experian if you can.

It's really your call: pay the interest you're paying now or try for a BT card to help out now. Pick your poison.

And if you still need another opinion, I will second (or third) Creditaddict's recommendation as well.

Re: Balance Transfer Options

mkb2 — Tue, 14 Jan 2014 00:12:57 GMT

Thanks for all the input. I think I'm going to wait 3 weeks when one of my inquires falls off and then go for it based on your advice(s). Plus I just paid off one card and it won't report that for another 2 weeks.

This crazy forum can be so helpful....it's all such a crazy game and it's good to have coaching when you play ball.

Re: Balance Transfer Options

mkb2 — Tue, 14 Jan 2014 03:53:32 GMT

Re: "Find one that doesn't pull Experian..."

Any recommentations there? Chase or this Duck Card? Any idea which one they pull? My best score comes from Trans Union because they only have one of my two late payments from 2009.

Re: Balance Transfer Options

FinStar — Tue, 14 Jan 2014 04:37:16 GMT

@mkb2 wrote:
Re: "Find one that doesn't pull Experian..."

Any recommentations there? Chase or this Duck Card? Any idea which one they pull? My best score comes from Trans Union because they only have one of my two late payments from 2009.

Chase can pull EX and/or TU (can be a double pull, 1 on each). The OCCU Beaver or Duck card pulls EQ.

Re: Balance Transfer Options UPDATE

mkb2 — Fri, 07 Feb 2014 23:16:13 GMT

FYI: I ended up waiting until one account I had paid off posted and went with a Barclay's one year free balance transfer card. Some info:

1 - Barclay's pulled TransUnion, which is my highest score of over 750, a full 20-30 points higher than the others because they have one late payment ever instead of two (One of my cards doesn't report to them).

2 - My credit line ended up at $8500, which is $2500 more than the Citibank I just opened and mentioned in the first post.

3 - I know people are wondering if you get more or less credit line if you fill out in advance which cards you are paying off. I DID fill that out and those totalled about $3700. Not sure how that affected my total credit line but my hunch is they approved a higher line because I was up front asking them to pay off other cards. I'll let people with more expertise comment on this hypothesis.