Balance transfer card - what's okay utilization?

[skigirl916]

If I'm not worried about applying for anything in the next few months, how high can I let my utilization on one card get for balance transfer purposes?

I've got a $0BT and 0.00% APR that I'd like to take advantage of, but I'd have to get to like 70% at first to really make it worth the effort... that's SCARY.  Then it would be 50% in December, 30% in January, etc. 

[Anonymous]

---

@skigirl916 wrote:

If I'm not worried about applying for anything in the next few months, how high can I let my utilization on one card get for balance transfer purposes?

I've got a $0BT and 0.00% APR that I'd like to take advantage of, but I'd have to get to like 70% at first to really make it worth the effort... that's SCARY.  Then it would be 50% in December, 30% in January, etc. 

---

I wouldn't go over 50%.

But 60% SHOULD be okay...

[LexieCat]

I just "maxed out" a card for a BT offer, but it's $6500 and I plan to pay (have been paying on one of the cards I transferred from) $500/month.  So that card will be high for a few months, but will drop quickly, and it was worth it to me for the 0 percent interest.  I won't be buying a car for at least a year, no plans for any other loans/mortgages, so I feel fine about it.  My scores took a small hit but not too bad, and it will be a non-issue in a matter of months.  

Everything is a tradeoff--for some people the need to have max possible score is important.  I'm in good shape at the moment and can afford a minor temporary ding.  It all depends.

[skigirl916]

Thanks Lexie. That's what I was thinking too.

I guess I'm worried about potential AA for having a sudden very high UTL on a brand new card. Am I being silly?

[Anonymous]

With all scores in the 720+ range, yeah....Id say ~75% is just fine but if under 700. I prefer to be conservative.

It's your card and your credit

[Anonymous]

---

@skigirl916 wrote:
Thanks Lexie. That's what I was thinking too.

I guess I'm worried about potential AA for having a sudden very high UTL on a brand new card. Am I being silly?

---

Not at all silly, but it all depends on what you want to accomplish.

For high util on your BT card, you will take a ding until its paid down, but that's a good trade off to avoid interest fees for most people.

If your not applying for anything in the near future, you can ignore your credit score for now and just concentrate on paying down your debt in the most efficient and less costly way available.

Im playing that same game right now.

By and large, if your looking to strike a balance, just make sure you have no single card reporting more than 89%.

FICO considers 90% and above to be MAXED OUT.

As a rule, I try to keep any card under 85%.

[Chris679]

I say this all the time but don't let your credit score cost you money. If you can save money with the balance transfer then go ahead and max it out. This is the reason they offer balance transfers, they want you to use them. Just try to pay 10-15% of the balance each month at first upping that until it's paid off. They won't won't balance chase you unless you are carrying a large balance and only making min payments for months/years. Also if they did balance chase, you can always get the limit back but you have already saved the money on interest.

[Anonymous]

Op, you should be good to go on your BT but try to pay 10+% per month of balance.

[LexieCat]

---

@Chris679 wrote:
I say this all the time but don't let your credit score cost you money. If you can save money with the balance transfer then go ahead and max it out. This is the reason they offer balance transfers, they want you to use them. Just try to pay 10-15% of the balance each month at first upping that until it's paid off. They won't won't balance chase you unless you are carrying a large balance and only making min payments for months/years. Also if they did balance chase, you can always get the limit back but you have already saved the money on interest.

---

Exactly my thinking.  The whole point of a good credit score is to save you money on interest.  It isn't like having a higher score benefits you in intangible ways, the way being a Nobel Prize recipient would.  The glory of the high score is vastly overrated.  If your score is high enough to get you what you want, what more do you need?

And if the BT is going to save money in the long run, that's worth more than having a score sitting there in the credit reporting agency's file.

[Anonymous]

---

@LexieCat wrote:

---

@Chris679 wrote:
I say this all the time but don't let your credit score cost you money. If you can save money with the balance transfer then go ahead and max it out. This is the reason they offer balance transfers, they want you to use them. Just try to pay 10-15% of the balance each month at first upping that until it's paid off. They won't won't balance chase you unless you are carrying a large balance and only making min payments for months/years. Also if they did balance chase, you can always get the limit back but you have already saved the money on interest.

---

Exactly my thinking.  The whole point of a good credit score is to save you money on interest.  It isn't like having a higher score benefits you in intangible ways, the way being a Nobel Prize recipient would.  The glory of the high score is vastly overrated.  If your score is high enough to get you what you want, what more do you need?

And if the BT is going to save money in the long run, that's worth more than having a score sitting there in the credit reporting agency's file.

---

It's not just for the sake of the credit score.

Lots of new accts + sudden near max out on a card.....what would YOU say if you were one of the OP's new CC's.