Balance Transfer Question

[Anonymous]

Hello, I need some expert advice,  last April before I took a loan at AVANT for 3k. Im paying $120.00 per month for 48months its a 35%APR.

my question is is it a good idea to pay off that loan now? I can get a balance transfer from my credit card for 0 % apr until July 2016.

and also would my score drop if I pay off that loan?

I know it will increase mu utilization on the card. but will it look bad for the credit card company since im maxing it out.

please give me an advice. thanks a lot

[Anonymous]

35% is just an insane APR.  If you have a 0% APR use it.  It will look bad on your credit report but as long as you are not applying for anything thing new, you should be fine.  The 35% on the other loan is just not good.

[Anonymous]

thanks for the advice, do you think it wont look bad for the credit card company using a balance transfer?

[Anonymous]

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@Anonymous wrote:

thanks for the advice, do you think it wont look bad for the credit card company using a balance transfer?

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If it a personal loan that you are paying off, the money from the credit card will be considered a cash advance.  And you won't be getting 0% interest.  The 0% offers are usually for purchases.

And yes, maxing out the card will reflect on you negatively.  What card were you thinking of?

[Anonymous]

I will be using my WF Propel, I talked to the branch manager at Wells Fargo They said they can request a balance transfer but the is a fee of  $70.00.

and he said it is still a 0% apr up to July 2016

[Anonymous]

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@Anonymous wrote:

I will be using my WF Propel, I talked to the branch manager at Wells Fargo They said they can request a balance transfer but the is a fee of  $70.00.

and he said it is still a 0% apr up to July 2016

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Oh Ok.. As as long you have done your home work then you should be fine.  You have a 4k credit line so moving 3k isn't as bad at the 35% you are paying.

[Anonymous]

Not entirely true.

I paid off the last 2500 of an avant loan to my nfl points card, 0 percent. Barclays is the noe you want to use. BTW people do balance transfers to pay off medical bills all the time and they are not cash advances. Just do your diligence

[NRB525]

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@Anonymous wrote:

Hello, I need some expert advice,  last April before I took a loan at AVANT for 3k. Im paying $120.00 per month for 48months its a 35%APR.

my question is is it a good idea to pay off that loan now? I can get a balance transfer from my credit card for 0 % apr until July 2016.

and also would my score drop if I pay off that loan?

I know it will increase mu utilization on the card. but will it look bad for the credit card company since im maxing it out.

please give me an advice. thanks a lot

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At 35% APR, you realize that over the next year you will be paying $980 of just plain interest on a $3k loan?  And that the principal will only be reduced to $2,500 being charged interest? So the second year pays almost $800 of interest? OUCH!

If, on the other hand, you take the WF BT offer for the $70 fee, and you continue paying the $120 per month, you will instead have paid down the loan by $1,440 or nearly half. Even if some of the remainder is on the WF interest rate afterward, which is probably still in the range of 20%+, at that point in July 2016 you'll have a lower principal balance that has any interest charged on it.

Do the BT. You have capacity on the WF card. Don't worry about any utilization concerns. This is $1k of cash you are avoiding paying out in interest. Is your FICO score worth paying an extra $1,000 for? I didn't think so.

[Anonymous]

Thanks a lot for the advice, I will go ahead and do the BT. I'm just liitle bit corncern about that utilization thing since I was re establishing my credit. But now I guess I can be careless for now. And I think It will help my credit profile for WF Propel if I will pay it off quickly.

I just dont wanna pay it off quickly thru AVANT, because of too high APR.

If I knew that I can get a good CL thru my CC before, I shouldnt  do this Loan.

Again Thanks a lot of the very clear advice!!

[takeshi74]

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@Anonymous wrote:

I know it will increase mu utilization on the card. but will it look bad for the credit card company since im maxing it out.

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$3K/$4K = 75%.  Not maxed but still very high.  All depends on how long you take to get that down.  How long before you can get it under 50%?  Under 30%?

It's also not just that credit card company but any creditor looking at your reports.

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@NRB525 wrote:

Don't worry about any utilization concerns. This is $1k of cash you are avoiding paying out in interest. Is your FICO score worth paying an extra $1,000 for? I didn't think so.

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It's not just score but risk that matters as well.  If that can be paid down quickly it's probably not an issue.  If that will be carried at high utilization for a long time it could lead to trouble.

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@Anonymous wrote:

I just dont wanna pay it off quickly thru AVANT, because of too high APR.

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How long would it take to "quickly" pay off?  How much interest would you accrue with Avant in that timeframe and how does that compare with the BT fee that you would pay?