Balance Transfer or a different route?

[Anonymous]

Hey all, I'm new to the board and I have learned a lot from the year or so I've been lurking on here.  I'm looking for some advice on how to proceed with the situation I'm in.

I have a Discover IT card that I opened last year.  I went/am going through a career change and have put more on the card than I had expected.  When I applied I qualified for a $22,000 Credit Limit.  I now have a $6,700 balance and my 0% intro APR expires March 12 this year.  

I also have a Capital One QuickSilver that I have had since 2007 with a $5000 Credit Limit and I have not used that card for almost 5 years.  The balance is $0 on this one.

My FICO score on my Discover Card puts me at 766.  The household income puts me right around $140,000 annually (My wife is a stay at home mom).  We have a mortgage, 2 car payments (one will be paid off in May), and a school loan.  I bought my first house when I was 21 (now on my 3rd), and I'm now 39 so I have a little bit of a history.  Payments have been on time over the last 3 or 4 years, before that I may have had a car payment a few days late, but nothing crazy.  My last hard credit pull was my Discover Card in January of last year.  Before that, was the purchase of a vehicle in June of 2017.

What I'd like to do is transfer the balance of my Discover IT card to something else with 0% until I'm settled on my feet.  We budgeted for this move, but there were some unexpected bumps in the road and that is where the charges on my card came from.  I can pay the balance off in the next 10 months or so, but I need a little more time without the interest eating me up.  I know the Amex Everyday has a max balance transfer of $5000 (if I got approved for that much) so that's an option.  My Capital One does not have a balance transfer fee, but the APR is 9.5%. I thought about applying for the Amex ED and transfer as much as I could to that, then transfer what's left to the Capital One and try to knock that balance out first.  The Chase Slate is out there, but I'm a little concerned about the low credit limits I've been reading about from Chase.  I'm a little leary about having to open 2 new cards or maybe I'm just being too paranoid?

Can anyone throw some suggestions my way?  I could really use some help.  Thanks for your time.

*Mods: Wasn't sure where to post this, so I apologize if I put it in the wrong forum.

[Citylights18]

What I would recommend to you which is kind of an infinity banking principal is to apply for another 0% APR card and put all of your spend on that while you pay down the Discover.

This way you save the balance transfer fee on your new card. But you'll have to pay off the money on the BT before the promotion on that card which could be anywhere from 9 months, 12 months or more.

So if you can knock out your discover card this way in 2 months then you won't pay much in interest. 

Chase at your income level and scores should offer you 20k starting limit with the Freedom Unlimited which I like over the Freedom in this situation since its a 1.5% everything card.

[Anonymous]

---

@Citylights18 wrote:

What I would recommend to you which is kind of an infinity banking principal is to apply for another 0% APR card and put all of your spend on that while you pay down the Discover.

This way you save the balance transfer fee on your new card. But you'll have to pay off the money on the BT before the promotion on that card which could be anywhere from 9 months, 12 months or more.

So if you can knock out your discover card this way in 2 months then you won't pay much in interest. 

Chase at your income level and scores should offer you 20k starting limit with the Freedom Unlimited which I like over the Freedom in this situation since its a 1.5% everything card.

---

I had not thought of that, thanks.  In my situation it would probably take me 4 months to pay off the balance on the Discovery without a transfer.  I think in the situation you present, I'm better off applying for the CFU and transferring everything to that and accept the 3% balance transfer fee which would be roughly $210 (would be less than the interest I'd pay on the Discovery).  I've been eyeing going the Chase Trifecta route so this makes sense for me.  Thanks again for the suggestion.

[AllZero]

Have you considered joining a credit union? There are several that offer 0% 12 month BT.

Are you eligible for Navy Federal Credit Union?

Pentagon Federal Credit Union has open membership.

[Anonymous]

---

@AllZero wrote:

Have you considered joining a credit union? There are several that offer 0% 12 month BT.

Are you eligible for Navy Federal Credit Union?

Pentagon Federal Credit Union has open membership.

---

I have looked into that.  My local credit union does not have a BT fee, but there is a 3% APR on all balance transfers.  I can't say I have looked into credit unions beyond my local one.  

I'm not eligible for the Navy Federal Credit Union.

I went to the PenFed Credit Union website and they have a 4.99% APR on balance transfers.  So there is not a fee for a BT, but there is an APR on the amount.  I will, however, keep them in mind for the future.  I typically try to support everything as local to me as possible, but from what I've read this is a good one to join.  Thanks!

[K-in-Boston]

If you wanted to save on the balance transfer fees, I would suggest Bank of America's BankAmericard or Chase's Slate card.  Both have $0 fee and 0% interest on BTs when you do them in the first months of account opening.  NFCU and other credit unions also have great BT products with low or no fees.(BECU would be one with no fees and 0% but joining can be a different experience than most are used to if you live outside of WA state.)  Otherwise, there are plenty of great BT offers out there.  Citi Diamond Preferred would be a decent option too that can be product changed later and would give you quite a buffer on additional months at 0%.

In reference to the earlier comment about income and scores likely to result in $20k or higher starting lines, it's about much more than that.  With much higher income and higher scores, I got my highest Chase approval of $15k a year ago.  It's one of those things that unless you have an offer from Chase that specifically lists a credit line, it's always a gamble.

[K-in-Boston]

---

@Anonymous wrote:

---

@AllZero wrote:

Have you considered joining a credit union? There are several that offer 0% 12 month BT.

Are you eligible for Navy Federal Credit Union?

Pentagon Federal Credit Union has open membership.

---

I have looked into that.  My local credit union does not have a BT fee, but there is a 3% APR on all balance transfers.  I can't say I have looked into credit unions beyond my local one.  

I'm not eligible for the Navy Federal Credit Union.

I went to the PenFed Credit Union website and they have a 4.99% APR on balance transfers.  So there is not a fee for a BT, but there is an APR on the amount.  I will, however, keep them in mind for the future.  I typically try to support everything as local to me as possible, but from what I've read this is a good one to join.  Thanks!

---

Most of PenFed's cards are 0% for 12 months with 3% fee.  Promise is 4.99% with no fee.

https://www.penfed.org/credit-cards

PenFed is not likely to give a huge starting line to new members these days though.

Your local credit union's 3% APR would beat out a 3% fee and 0% APR offer even if you took a whole year to pay, as it's 3% of a whole balance vs. 3% on a declining balance.

[AllZero]

PenFed PCR, Platinum, Gold - 0% APR promotional balance transfer rate for 12 Months on transfers made from October 1, 2019 to March 31, 2020. A 3% balance transfer fee applies to each transfer. PCR and Platinum could be useful after the BT.

I don't know what state you reside in. You should also check out BECU. They may or may not be local to you.

ETA K-I-B just mentioned BECU which is a great CU.

[Anonymous]

---

@AllZero wrote:

PenFed PCR, Platinum, Gold - 0% APR promotional balance transfer rate for 12 Months on transfers made from October 1, 2019 to March 31, 2020. A 3% balance transfer fee applies to each transfer. PCR and Platinum could be useful after the BT.

I don't know what state you reside in. You should also check out BECU. They may or may not be local to you.

ETA K-I-B just mentioned BECU which is a great CU.

---

I'm in Ohio

[AllZero]

BECU Eligibility Question