topic Re: Effects of balance transfer in Credit Cards

Effects of balance transfer

kmr8 — Sun, 23 Nov 2014 18:22:46 GMT

I have my credit history of just less than a year.

9 Card accounts - $27k and 1 auto loan of around the same balance

Average CL used - 5%

Current usage - 0%

AAoA - 0.42 yr

Oldest - 0.9 yr

Got Chase Slate ($5k limit recently). Just want to transfer balance to Citi and then to a checking to save the money. (Haven't been very disciplined in that area.)

Just wondering if there will be any issues if I transfer about $4.5 k from Slate to Citi (also $5k limit $0 balance) and then get a check from Citi in terms of credit score or transfer issues.

Also will it trigger any FRs? (Have two Amex of $2k limit each.)

Current Experian Fico - 712

Credit Karma - 715

After that transfer,

my util on Chase Slate would be 90%

Total util on all cards would be 17%

FICO Score estimator projection post transfer - 665-715

Re: Effects of balance transfer

lhcole77 — Sun, 23 Nov 2014 15:57:41 GMT

You will definitely get dinged for having a card at 90%. That's when you start entering the range of a card being maxed out. However, if you're going to be paying it down responsibly and or quickly then I wouldn't worry about it.

I'm a bit confused, though. Are you transferring your balance from Chase to CIti? Or from Citi to Chase?

Re: Effects of balance transfer

kmr8 — Sun, 23 Nov 2014 17:45:15 GMT

From Chase Slate to a Citi card

And hoping to get a check cut from Citi.

Will the 90% util on one card and 0% util on alll others (Total util will be around 17%) trigger FR from any lender?

Major cards I have are Chase, Amex, Citi, and Discover.

Re: Effects of balance transfer

NRB525 — Sun, 23 Nov 2014 18:15:17 GMT

@kmr8 wrote:
From Chase Slate to a Citi card
And hoping to get a check cut from Citi.
Will the 90% util on one card and 0% util on alll others (Total util will be around 17%) trigger FR from any lender?
Major cards I have are Chase, Amex, Citi, and Discover.

That's still not a clear explanation. From your first post, it sounded like you would transfer from Slate to Citi, $4,500 of a $5k line at Citi then, and then request a check from Slate for another $4,500 cash advance?

And you won't get FR from the cards that are at zero, they aren't interested in that. The high Utilization on Citi (and potentially Slate) will ding your FICO for a bit, but you save money on the interest and you just need to pay it down quickly before the 0% APR expires. With these new cards and paying down balances you should be gardening intently for a while.

Re: Effects of balance transfer

kmr8 — Sun, 23 Nov 2014 18:23:52 GMT

Thank you. Updated my original post.

Wont tuch my Citi limit. Just get the check from them for whatever I am transferring from Chase.

Re: Effects of balance transfer

NRB525 — Sun, 23 Nov 2014 18:31:23 GMT

@kmr8 wrote:
Thank you. Updated my original post.
Wont tuch my Citi limit. Just get the check from them for whatever I am transferring from Chase.

Ok, that's what I thought you meant, thanks for editing to clarify.

You should check the fine print on that Citi cash advance offer. Usually it comes with a different, much higher interest rate once the 0% period ends, not your regular purchase APR. Even if it isn't a higher rate, it becomes expensive money sitting in a checking account just burning a hole in your pocket, so think carefully about taking any cash advance from any credit card.

Cheers!