I have two cards. CSP - 28,400 CL and Amex Plat
I am carrying a 10k balance that I plan to pay off in a few months and I wanted to BT to Discover IT for the 0%.
Well my account just got setup this morning and when I logged in it says my CL is only 5500 which is not enough. I called them
and they said I need to wait 6 months to CLI. My question is if that I cannot transfer the whole balance then I do not want another
card. I was thinking of just cancelling the card. I know it will hit my credit but I am unsure of what to do now? How hard will it
affect my credit?
In terms of paying it off, how many months is a few months?
What's your APR on the CSP?
What's the transfer fee on the discover?
If the transfer fee is < than the CSP's APR divided by 12 (mo. in year) times the # of months you would pay the balance off in, then doing a partial balance transfer makes sense. Otherwise it does not. Example, transfer fee 3%,CSP APR 15.24%, you were going to pay it off in 6months. That's 15.24 / 12 (to get monthly APR) TIMES 6 months = 7.62% APR. So 3% < 7.62% so you save more than 50% on your interest.
Also, Discover It is a great card to have so I recommend keeping it open regardless of whether you end up doing a partial balance transfer to it or not.
How bad will it affect my credit if i close it?
I believe my APR is 12.99 and i would pay it off in 6 months
Its hard to say how it will affect your credit if you close it, if you only have 3 cards then yeah it could affect it because your utilization % will raise again. Honestly I'd leave it open.
You may want to check your APR because their signup says 15.24 and that's what we're at - not saying yours isn't 12.99 just you may want to double check that.
Even at 12.99 though, assuming a 3% BT fee you're going to come out ahead.
i see what you mean .. i just dont like how a lot of cards .. i just wanted to keep the csp and amex .. only using discover for the 0% .. but now that i cant transfer the whole amount .. it kinda seems pointless
You can transfer 5300, the 3% fee will add $159, so your balance on the discover it card will be 5459.
The interest on 5300 at 15.24% APR for 6mo is $403.86*. So you COULD effectively save $244.86* by doing the balance transfer.
Moreover though, is the BT offer for 12months? If so, you could do this:
Pay $454.92 to Discover It for 12 months, and your $5,459 will be paid off when the promotion expires.
The remaining $4700 on your CSP at 15.24% will cost you less than $358*.14 in interest if you pay it off in 6 months, or less than $716.28* if you pay it off over 1 year.
* Amortization will reduce all the amounts because as you pay principal your interest will be reduced.
the discover is 0% over 18 months
Well even better, you can pay the $5459 off over 18months with 18 equal $303.28 payments. And focus the rest of your money on paying off the CSP balance as quickly as possible
thanks for the help .. quick question .. when would be the best time to pull my credit report .. should i wait a bit since i just opened discover or it doesnt matter ?
It may not have reported yet. It can take a few days to a couple months, but most of the time within 30 days it should be showing up.