First post with lots of questions.

[Anonymous]

First, please forgive me if the answers are already here.  I've read a number of posts, but don't *think* I've seen this addressed.

my background:

I've been playing the 0% interest game for awhile.  Currently, I'm carrying a 40k+ balance on a Chase M/Card.  The 0% comes to a scretcheing halt on 11/6.

The previous 0% interest card was the Discover Gold card ($35k+ CL...no balance).  I also have a regular Discover card with a 1,5K CL...no balance.  I've had the regular Discover card for (I'm guessing) 20+ years.

My stragic plan is to open a new Discover More card (0% for 12 months) and I'm guessing they might approve a CL of $10k (my FICO is 792).  By combining the available credit on the Discover Gold and Regular Discover with the new Discover More card, I hope to have a high enough CL to do a BT from the Chase card (with a balance of 40k+).

Anyone see any red flags in the plan?

Anyone aware of a 'limit' on the number of times a BT can be done?

Sadly, I *believe* Discover will require a monthily minimum payment of 4% (rather than 2%) because of the high percentage of the balance having come from a BT.  Anyone have experience with this?

Thank you all very much for reading this post.

[Anonymous]

The only red flag I see is that issuers are getting smart to the balance transfer game.  Not sure how long it took you to get into 40k of debt but if your debt has been steadily increasing with no sign of decrease, you may be shot down.  PenFed has a word for it 'Pyramiding Debt'.

[Anonymous]

I've accumulated the debt over the past 2.5 years....I'm building a house.  I don't have a mortgage, and actually see the cc balance as a mortgage.

I have been saving, and hope to have the full amount to pay off the cc in Nov, if I get turned down.

I just don't want to shoot myself in the foot, by applying.

Thank you again.... 

[Anonymous]

I would apply for the Bt is possible but don't be surprised if you are declined due to the increase in debt in the past 2.5 years.  Congrats on the house but lenders generlly look for those types of expenses to be covered under the construction loan.  IF you are declined you can always do a recon explaining the situation.

[Anonymous]

Thank you again, Brammy.  I really appreciate your feedback

[Anonymous]

Get the house built and get a mortgage on it - that interest is tax deductible - and pay of the credit card if you haven't already.

You are now feeling the squeeze from BTing -- and it will only get worse.  Best scenario s to pay off w/o using the house as collateral (mortgage or HELOC).

[Anonymous]

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Lady_Scarlet wrote:

Get the house built and get a mortgage on it - that interest is tax deductible - and pay of the credit card if you haven't already.

You are now feeling the squeeze from BTing -- and it will only get worse.  Best scenario s to pay off w/o using the house as collateral (mortgage or HELOC).

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Not sure how much equity they are going to have on a newly built house if the construction loan was not enough to cover the expenses.  More than that I do not believe in securing unsecured debt with homes.  Add an additional 40k in debt to the home?  Not even sure if that's possible with no equity in the house.  Can you wind up upside down on a home loan?

[Anonymous]

Saw no mention of a construction loan (OP - do you have one?)  If no loan and the cards were used to buy materials for a self-build, then why not a HELOC or mortgage to pay off the cards?  That is if the majority of that 40K was spent on constructing the house (not buying furniture for it)

BTDT in the 1980s - a full rehab on my cards - then sold it (up market then) and paid off the cards.

[Anonymous]

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Lady_Scarlet wrote:

Saw no mention of a construction loan (OP - do you have one?)  If no loan and the cards were used to buy materials for a self-build, then why not a HELOC or mortgage to pay off the cards?  That is if the majority of that 40K was spent on constructing the house (not buying furniture for it)

BTDT in the 1980s - a full rehab on my cards - then sold it (up market then) and paid off the cards.

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You are rright, there doesn't seem to be a mortgage on the property.  OP why don't you have a mortgage?  Was the 0% just too tempting?  if you can build a house for 40k or so, go for it, but you may want to look into a mortgage nontheless.  First of all it will boost your FICO scores, secondly, whatever rate you get has to be cheaper than credit card interest rates.  You may be able to get a good 5.99 for life of balance or some other good life of balance loan for the current amount and finance the rest of your building.

[Anonymous]

Hi all,

The house that is being built is probably better termed a 'rehab' to an existing house.   

I bought the house in 1992 for $72K.  The main part of the house was probably built in the '50s, and it had multiple additions.  My ex and I put a 1,000 sq. ft. addition on in 1993.

In April 2005, we ripped away the older part, and the house that we are building now is more like an addition to the 1993 addition.  (hope that makes sense).

Also in April 2005, I paid off the mortgage, and got a HELC (for 150K).  But.....with zero percent cc offers available, I choose that route for purchasing building materials.

I have thought of getting a mortgage, but can't help but think that 0% beats 6+% any day....and that's why I have 40+K on cc.