Chase app

[Anonymous]

So you are talking about balance transfers, and not actually paying off the Capital One cards right now?

[skoop]

The card is the BoA Cash Rewards Visa card.  No annual fee, No interest for 15 billing cycles. 4% to transfer balances.   I don't know that I "have to have, or need to have," but getting rid of balances with interest is certainly appealing.

But, one caveat, is that I am gong to try to refinance my house soon.  And I don't want to do anything to jeopardize that!  Thoughts?

[skoop]

Yes, balance transfers from a 22% interest to 0%.  Isn't that a good idea?

[Anonymous]

Define "soon" on the refinancing.

And how much do you owe on Capital One overall?

[skoop]

Home refinancing....6 months to a year.

Capital One-- around $4,000 total for both. How do BT show up on credit reports, or do they?

[Anonymous]

6 months to a year should be fine.

If it's $4,000 then you are much better off doing the BT. The fee for the BT's will probably be about 200 bucks (maybe less), which is a lot better than paying over $700 (bad guess) in interest over time.

The problem with doing BT's to the Freedom and a new BoA card would mean that if your goal is to bring down your balances, you might want to watch what you spend on very carefully. The last thing you want to do is get two new cards with 0% for NOW and then add onto the balances over time and before you realize it time's up, you have $5000 on two different cards and are now paying interest on that.

So make sure if you get the BoA card that you are diligent on bringing those balances down and not overextend yourself.

[skoop]

Yes, I am going to be diligent with this.  My goal is to get these CC balances down, so I can refi and my debt to income ratio will be better.  I am so grateful for myFico and all that I have learned over the last 5 years.  Now, I need to do some work and make some money.  Thanks for all the help.  Still undecided about the BoA card.

[Anonymous]

I forgot to ask another question...

What are your credit limits on the Capital One and are they charging you an annual fee?

[skoop]

Credit limits are 6100 on one and 2500 on the other.  Both charge an annual fee.  I am no where near the limit on the larger, and within 500 of the other.  One of the annual fees is due on 4/30/12. 

[Anonymous]

The reason why I ask is that you might take a hit on your score for your overall utilization when it comes to the refinance.

You are essentially at 50% right now.

If it's about potentially saving money, I'd try the BoA card now, but you are at the mercy of them giving you whatever limit they might give you, could be high, could be low. You say you want to refinance between 6 months to a year, and it'd be in your better interest to get those cards down as much as you possibly could, which definitely helps if you BT to 0% cards. 22% is killer.

I'd definitely be focused on getting that utilization down, and if it meant using a 0% card to do so, so be it.

Is the one with the annual fee due on 4/30 the one with 2500??? I'm quietly hoping so. Losing the CL of 6100 would place a huge hit on that utilization as of right now.