topic Re: Balance transfer in Understanding FICO® Scoring

Balance transfer

Tiersha — Mon, 01 May 2023 01:53:30 GMT

I have two unused cards, both with bt option. While my score is important to me I also am not applying for any loans in the foreseeable future and will have a chunk of change in a yr or so from a real estate sale.

How much is it going to hurt my fico to max out my bt cards with a full bt transfer? I have a decent score but don't want to see it tank.

It would be a $1600 bt (between 2 cards maxing both for the bt) off of a 4k cl.

Money is more imp now than my fico which inhereently may answer my question.

Re: Balance transfer

markbeiser — Mon, 01 May 2023 03:11:11 GMT

Maxing out two cards will be a pretty big ding to your credit scores.
What do you mean by "decent credit?"

Re: Balance transfer

Tiersha — Mon, 01 May 2023 03:26:53 GMT

679, 671, 683

Re: Balance transfer

markbeiser — Mon, 01 May 2023 03:49:18 GMT

@Tiersha wrote:
679, 671, 683

Darn, not quite high enough to get a $10k+ CL on one of the credit union cards that are known for big limits.
The problem with maxing out a couple of cards is that, even if you don't care about the credit score impact, it could spook your existing lenders and trigger credit limit decreases and/or balance chasing, which would really wreck your utilization.

Re: Balance transfer

JoeRockhead — Mon, 01 May 2023 11:35:42 GMT

@Tiersha wrote:
I have two unused cards, both with bt option. While my score is important to me I also am not applying for any loans in the foreseeable future and will have a chunk of change in a yr or so from a real estate sale.

How much is it going to hurt my fico to max out my bt cards with a full bt transfer? I have a decent score but don't want to see it tank.

It would be a $1600 bt (between 2 cards maxing both for the bt) off of a 4k cl.

Money is more imp now than my fico which inhereently may answer my question.

@Tiersha isn't this the same scenario you posted about a couple of weeks ago here. The same advice would still apply. The only way a BT doesn't hurt you in your case, is to keep the UTI down across all cards to the lowest point you are able to get them. My post from your other thread:

"The best way to utilize the 1600 in BT you have available would be to only use 28% of those available credit limits or roughly $448.00 (combined on both cards). Although they're labeled as BT cards, they're still just revolving credit accounts, so maxing out either, or both of them is only going to hurt you not help you. You're just trading one maxed out account for another (or two). If anything I would do as South Jamaica suggested and put the money towards the maxed out card (4k) which might actually improve your scores somewhat"

Re: Balance transfer

Tiersha — Mon, 01 May 2023 11:51:00 GMT

You are right, it is but I couldn't find this comment. The savings are more imp which is why I am asking.

@JoeRockhead wrote:
@Tiersha wrote:
I have two unused cards, both with bt option. While my score is important to me I also am not applying for any loans in the foreseeable future and will have a chunk of change in a yr or so from a real estate sale.

How much is it going to hurt my fico to max out my bt cards with a full bt transfer? I have a decent score but don't want to see it tank.

It would be a $1600 bt (between 2 cards maxing both for the bt) off of a 4k cl.

Money is more imp now than my fico which inhereently may answer my question.

@Tiersha isn't this the same scenario you posted about a couple of weeks ago here. The same advice would still apply. The only way a BT doesn't hurt you in your case, is to keep the UTI down across all cards to the lowest point you are able to get them. My post from your other thread:

"The best way to utilize the 1600 in BT you have available would be to only use 28% of those available credit limits or roughly $448.00 (combined on both cards). Although they're labeled as BT cards, they're still just revolving credit accounts, so maxing out either, or both of them is only going to hurt you not help you. You're just trading one maxed out account for another (or two). If anything I would do as South Jamaica suggested and put the money towards the maxed out card (4k) which might actually improve your scores somewhat"

Re: Balance transfer

Kforce — Mon, 01 May 2023 17:05:13 GMT

As others have said.

It is going to hurt your score's

You might have AA on cards.

No one can tell you the your future scores or chance of AA occurring.

If you need the savings, do it.

What will happen will happen.

You might save money and come out with out a single scratch .or.

you might save money and have two cards closed and two with a 500 CL

Only you know how worthwhile the savings of doing the BT's is for your financial position.

Re: Balance transfer

Tiersha — Mon, 01 May 2023 17:08:47 GMT

This answered my question...not wanting cards removed or lowered cl etc. 30% or less bt is what I will do.

Re: Balance transfer

SouthJamaica — Mon, 01 May 2023 18:26:50 GMT

@Tiersha wrote:
I have two unused cards, both with bt option. While my score is important to me I also am not applying for any loans in the foreseeable future and will have a chunk of change in a yr or so from a real estate sale.

How much is it going to hurt my fico to max out my bt cards with a full bt transfer? I have a decent score but don't want to see it tank.

It would be a $1600 bt (between 2 cards maxing both for the bt) off of a 4k cl.

Money is more imp now than my fico which inhereently may answer my question.

It's going to hurt your FICO scores plenty.

Re: Balance transfer

Kforce — Mon, 01 May 2023 18:50:49 GMT

@SouthJamaica wrote:
@Tiersha wrote:
I have two unused cards, both with bt option. While my score is important to me I also am not applying for any loans in the foreseeable future and will have a chunk of change in a yr or so from a real estate sale.

How much is it going to hurt my fico to max out my bt cards with a full bt transfer? I have a decent score but don't want to see it tank.

It would be a $1600 bt (between 2 cards maxing both for the bt) off of a 4k cl.

Money is more imp now than my fico which inhereently may answer my question.
It's going to hurt your FICO scores plenty.

Please report back with where your score land. as a data point for others.

Re: Balance transfer

Tiersha — Sun, 02 Jul 2023 00:50:57 GMT

As a small follow up...I chose not to max out my bt transfers. I've actually found it to be a game lol. Every month transfer which pays the other card. Pay the bt off, do it again. I put my monthly update here on pause for a few months. It will be interesting to see what it's done between last time I was here and ...well the future.

I have learned that Cap 1 is still cheap as ever allowing 1 bt only whereas my Citi card has unlimited until the promo ends in Nov 2024.

Re: Balance transfer

Tiersha — Sun, 02 Jul 2023 00:52:01 GMT

I eended up nt maxing out and kept things at 29%.