BT and UTIL question

[Anonymous]

Ok, so I like to play with OPM. I have a few cards I only use for the 0% BT offers. I then use the money to invest in something that makes more money.

I have about $30k in total balances, all held on 1 card at 0% until sept 2021.  Of course this results in a high UTIL % on that card (98%).  I am debating about transferring half the balance to a 2nd 0% card (but they currently charge a 5% BT fee).

My total UTIl is around 9% (with 1 card making up the total balance as all other cards are PIF). 

Is there a benefit to moving the BT to reduce the 98% util to under 50% on 2 cards?  At 5% BT fee this would cost me $750 in fees ( with 0% rate for 9 months). No change in total UTIL on all cards around 9%. Thoughts?

[NRB525]

Which bank is the 98% card at? Which would you transfer the portion to?

With several banks, the chances of balance chasing is real, so your attempt to game the utilization may result in two cards with very high utilization, in the scenario that both banks take action. Having said that, no one can predict if AA will happen, or not, it's just a possibility. Well, Barclays almost certainly would balance chase. 

If your scores are over 800, and no credit apps for car or mortgage coming up, if it were me I would not pay the fee. Any score gain, and there is probably some to be had, won't impress anyone, and nobody will pay you back the $750 because your score improved.  Unless you are applying for a mortgage. 

[AverageJoesCredit]

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@Anonymous wrote:

Ok, so I like to play with OPM. I have a few cards I only use for the 0% BT offers. I then use the money to invest in something that makes more money.

I have about $30k in total balances, all held on 1 card at 0% until sept 2021.  Of course this results in a high UTIL % on that card (98%).  I am debating about transferring half the balance to a 2nd 0% card (but they currently charge a 5% BT fee).

My total UTIl is around 9% (with 1 card making up the total balance as all other cards are PIF). 

Is there a benefit to moving the BT to reduce the 98% util to under 50% on 2 cards?  At 5% BT fee this would cost me $750 in fees ( with 0% rate for 9 months). No change in total UTIL on all cards around 9%. Thoughts?

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you play with Opium?

Jk,  i agree  biggest concern is AA but eventually as you continue to pay that % goes down so risk reduces.  If your profile is strong its easier to take those risks but if not , and you feel you wont pay off everything by end, a second xard is a good option in my opinion. 

[FlaDude]

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@NRB525 wrote:

If your scores are over 800, and no credit apps for car or mortgage coming up, if it were me I would not pay the fee. Any score gain, and there is probably some to be had, won't impress anyone, and nobody will pay you back the $750 because your score improved.  Unless you are applying for a mortgage. 

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+1, I see no reason to buy a higher score if you don't need one for anything. Maybe the CC companies are more agressive now, but I had many years of maxed out cards with FICO scores around 700 and was never balance chased on any of them once I started paying down.

[Anonymous]

Thanks for the replies to my post. My 4 BT cards are Barclays, BOA, Citi, and Discover.  Every year I max out one card with a 0% BT offer (if it makes sense).  At the moment, the only card with a balance is BOA (down to 90% util @ 0% till sept 2021). Note my score dipped from low 800s to 780's after the BOA BT a few months ago.

After I payoff a BT, I ask them for a CLI. Regarding balance chasing, Barclays just increased my CL to $32k, citi to $46.5k last year. BOA CL is $30k and Disco $28k. If anything these creditors are increasing my limits.

I've made disco my PIF daily driver this quarter in hopes they will give me a  sp CLI, as it's my only card (other than US Bank) under $30k CL.