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Discover IT balance txfer

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Valued Member

Discover IT balance txfer

I'm new to Discover and this is my first balance txfer. My cl was 6500 and I transferred 5000 at 0% interest for 18 mos. If I don't use the card for purchases and just work to pay off this balance for a year does that count as inactivity. I don't want them to think I'm a risk with my utilization that high but I also don't want to not use the card either. I'm not familiar with Discover so not sure how exactly to balance getting down my balance and using the card to eventually grow with them and hopefully get cli in the future. Any insight or advice on how to manage my newly acquired Discover would be appreciated.
Message 1 of 17
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Super Contributor

Re: Discover IT balance txfer

With a BT that high, don’t put any new purchases on it, just pay it down. It’s going to decimate your credit score until you pay it down under 48.9% ($3179 balance).

A BT and payments on a BT counts as activity on a card.



Message 2 of 17
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Valued Member

Re: Discover IT balance txfer

Thanks so much that's good to know that payments are considered activity. I know my credit score is going to take a hit but won't it balance itself out if now my QS is at 0 balance?
Message 3 of 17
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Super Contributor

Re: Discover IT balance txfer

The score impact depends on your aggregate utilization percentage as well obviously but a single card beyond 28.9%, 48.9, and 68.9% are scoring thresholds as well.

Just work on paying it off and don’t worry about it. I was just trying to emphasize the importance of not putting more charges on there.

Also keep in mind that Discover’s BT card doesn’t have a purchase intro APR, just a BT one, so you would actually be hit with interest for those.



Message 4 of 17
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Community Leader
Senior Contributor

Re: Discover IT balance txfer

Yeah, Saeren covered all the highlights lol. Just pay it down and everything will be good. Disco is very forgiving and will still give you your CLIs as long as you use the card responsibly. Disco also seems to like large amounts on the cards. 

Discover It: 19.7k
Amex ED: 18k
Citi DC: 7.7k
Best Buy Visa: 3k
~~~~~~~~~~~~~~~~~~
Once you go Berner, you never go back.
Message 5 of 17
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Moderator Emeritus

Re: Discover IT balance txfer

In my case I have used Discover BTs and pay within the time frames of the BT. Did not put anything else on the card until the BT was $0. Used Discover BTs over the years and no kick back. In fact, I am now paying off three and have it planned to the $0 mark. They have treated me well.
Starting Score: 300
Current Score: 850
Goal Score: 850


Take the myFICO Fitness Challenge
Message 6 of 17
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Valued Contributor

Re: Discover IT balance txfer

@pinkandgrey ... they immediately sent me to the fraud dept when I purchased a $2600 watch last week lol. But all good just looking out for me.
July 2020
Experian Fico 8. 707
Transunion Fico 8. 705
Equifax Fico 8. 724

Capital one QS1. $2450
Discover IT Cashback. $12,000
PNC cash rewards signature Visa. $17,500
Chase SW rapid rewards signature visa $6900
Amex Green Card NPSL POT $11,000

Amex Hilton Honors $1000
Citi Rewards $3900
Message 7 of 17
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Super Contributor

Re: Discover IT balance txfer


@Monijah wrote:
I'm new to Discover and this is my first balance txfer. My cl was 6500 and I transferred 5000 at 0% interest for 18 mos. If I don't use the card for purchases and just work to pay off this balance for a year does that count as inactivity. I don't want them to think I'm a risk with my utilization that high but I also don't want to not use the card either. I'm not familiar with Discover so not sure how exactly to balance getting down my balance and using the card to eventually grow with them and hopefully get cli in the future. Any insight or advice on how to manage my newly acquired Discover would be appreciated.

1. No that's not inactivity. They won't think you're a risk but the high percentage utilization (77%) will depress your FICO scores.

 

2. Do NOT use the card for purchases while you have the balance transfer out there. You will wind up paying interest on the purchases from day one... no grace period.


Total revolving limits 653000 (575000 reporting)

Message 8 of 17
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Super Contributor

Re: Discover IT balance txfer


@Monijah wrote:
Thanks so much that's good to know that payments are considered activity. I know my credit score is going to take a hit but won't it balance itself out if now my QS is at 0 balance?

No it won't because individual card utilization is a distinct scoring factor. You lose points for having any one card at 30% or higher.


Total revolving limits 653000 (575000 reporting)

Message 9 of 17
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Community Leader
Mega Contributor

Re: Discover IT balance txfer

Its almost always better to not mix bt and purchases. However, and some Disco cards has this as does mine, there are 0% Promo apr on Purchases and 0% Bt promos at same time so you could still make purchases on it if you wanted to. Just pay it off when statement cuts.
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