Balance transfer question

[ecxpa]

Just got an offer from Discover for 0% 12 mos balance transfer option.   I have a 1400 balance on a Chase card @ 15.94% that I was planmomg to pay off over 3 mos.  How does Chase look at you when you do balance transfers to another company.  Do they see it as pyramiding or something they frown on or does it matter to them.

[SamsungHDTV]

Its not going to matter to Chase.

But check if Discover charges 3% balance transfer fee. If so, its cheaper to leave it at Chase and pay payoff in 3 months. According to this handy credit card interest rate calculator.

$1400 x 3% = $42 in balance transfer fees verus leaving at Chase and paying the interest of $37.46 over the 3 months.

Versus paying off in 3 months at Chase:

What is your credit card balance? $1400

What is the interest rate on your credit card?     16%   

How is your minimum payment calculated?  Interest + 1% of balance 

Your minimum payment:$ 

What fixed payment could you make each month? $480

Select a payment schedule based on:

Minimum payment

Fixed payment

It will take you 3 months to be rid of your debt. In that time, you will pay 
$37.46 in interest.

Month	Fixed  Payment	Interest  Paid	Principal  Paid	Remaining  Balance
1	$480.00	$18.67	$461.33	$938.67
2	$480.00	$12.52	$467.48	$471.18
3	$477.46	$6.28	$471.18	$0.00

[ecxpa]

I'm doing some remodeling and figured if I could do a balance transfer without interest I could pay it off in 6 mos without interest and use the extra each month to do a little more  remodeling rather than pay the current balance in 3 mos.  Some costs are involved in everything.  $37 vs $42 is not a deal breaker for me.  I just don't want to tee off Chase.   The current card the balance is on has a 7k limit; the card I would transfer it to only has a 4K limit.  I know this will ding my utilization on the transfer card but not affect my overall utilization.  But iif having a 35% utilization on the transfer card is gonna ding my score a lot then I may just leave it alone.  I have no plans for any new credit and my overall utilization is around 7-8%.

[SamsungHDTV]

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@ecxpa wrote:

I'm doing some remodeling and figured if I could do a balance transfer without interest I could pay it off in 6 mos without interest and use the extra each month to do a little more  remodeling rather than pay the current balance in 3 mos.  Some costs are involved in everything.  $37 vs $42 is not a deal breaker for me.  I just don't want to tee off Chase.   The current card the balance is on has a 7k limit; the card I would transfer it to only has a 4K limit.  I know this will ding my utilization on the transfer card but not affect my overall utilization.  But iif having a 35% utilization on the transfer card is gonna ding my score a lot then I may just leave it alone.  I have no plans for any new credit and my overall utilization is around 7-8%.

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I see. You won't tee off Chase. Go for it if you need the extra cash. I wouldn't worry about individual utilization. Lenders usually are only concerned overall utilization. Maybe credit scoring considers individual utilization, but I don't know.