Is this a wise decision?

[Anonymous]

I have an AMEX card limit of $16,000 (15% apr) balance is $16,000 as well.  2 months ago I had a limit of $25,000 and they lowered it to my current balance.

I applied for a CC with Navy Federal last night to see if I could get a $16,000 limit at a lower interest rate so I can transfer the AMEX balance and close the account.  I got approved for $14,000 at 11.90%. I could transfer most of the balance at a slightly lower interest rate, but would still carry a small balance on AMEX until I could pay it off.

I'm wondering if this is a wise decision.  Is it better to just stay with the 15% with AMEX? Or will the 3.1% make a difference.

My current score is 698 EQ. Although 10 months ago it was well above 725. I moved, lost my job, etc... I'm still unemployed and trying to cut costs any way I can.  I'm making $400 payments on the AMEX and $200 is going to interest.

Thanks.

[AtmyOffice]

I would transfer the balance, and leave the AMEX open. Pay the small balance off asap and sock drawer it.

The 3% interest difference WILL make a change in how much you're paying toward your balance and you'll pay it off sooner.

I'm passing on the advice I got this morning of keeping your CL open if you can because you never know if they'll CLD you on something else.

[Anonymous]

Agreed. With a balance that high, the lower interest rate will definitely make a difference and allow you to pay the balance off quicker, and pay less money in the long run than if you'd kept it on the AmEx. 

AmEx may well CLD you to right above the new balance as soon as you BT away from them, be warned... if they keep the account open once paid off, just stick it in the sock drawer and wait it out while you pay the other card down. AmEx are pretty likely to keep CLDing you as soon as you make a payment, regardless, so better to have a high-limit card that your utilization will improve on every time  you make a payment than one where you're going to be continually maxed out no matter what you do.  

[Anonymous]

Check the BT rate.  If it is 3% with no limit then it's kind of a wash to transfer.  If it's limited to $150 or something that's another story..  Good luck on the job hunt!

[Anonymous]

Here's an update on my dilemma.

I got the NFCU card in the mail today. $14,000 limit, 11.90%.  However, they count BT as cash advances and that interest rate is 13.90%.  My AMEX rate is 15%.  So I was wondering if that really is going to be worth it?

I was thinking of this scenario. I have an Alaska USA CU Visa (limit is $16,000, current balance is $13,000 interest is 10.5%.) They only charge a $10 fee for BT.  So I take this $13,000 balance and transfer it to the new NFCU Visa ($14k limit), then BT the AMEX $16K to the Alaska $16k. AMEX is paid and clear. If I just transfer the AMEX to the new NFCU I'll still carry a $2k balance on the AMEX.

Does that sound like too much BTing? Not a good idea?

Is the 1.10% difference from AMEX's 15% to NFCU 13.9% going to make a difference?

Some good news, today I ordered my other fico scores and they look good.

12/16/08 TU 739

12/16/08 EQ 698

12/16/08 EX 719

Thanks for all your help.

[Creditaddict]

I would do ANYTHING to get the balance away from Amex, they are just going to keep chasing your balance down.

but with good scores like yours, why not get a 0% rate card with chase or citi or bofa for at least 12 months. but if you don't want to open anymore cards, I would do your 2nd scenario and transfer the alaska card to the new navy card and then transfer the amex to the alaska card. 

[Not_the_Point]

That actually sounds like a good idea. As you continue to pay off the cards they are not as likely to CLD you down with every payment as AMEX would. You'll also be saving on the interest and once you're done paying it all off your credit limit will be higher overall than what you started with.

[CreditAble]

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@Anonymous wrote:

Here's an update on my dilemma.

I got the NFCU card in the mail today. $14,000 limit, 11.90%.  However, they count BT as cash advances and that interest rate is 13.90%.  My AMEX rate is 15%.  So I was wondering if that really is going to be worth it?

Does that sound like too much BTing? Not a good idea?

Thanks for all your help.

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I would call NFCU and ask if the CU will consider raising your credit limit and lowering your interest rate so that it would be worthwhile for you to transfer the whole balance to your new account. You could tell them that you don't want too many accounts with balances. 

[Anonymous]

would be to get a personal loan that has between a 7.99 and 9.99 APR and move the debt from the revolving side to the installment side.  After you move it from revolving to installment make sure to keep you balances low on the revolving side until the end of time.  You should be able to get that type of loan through a credit union.  Good luck!!!

TheTaxMan

[marty56]

I would not transfer the balance to the new CC since the AE is a lost case know and you want to protect your new CC.  Having said that you should still look to see if you can find a lone at a lower interest rate to save money but be carefull since you dont want to do anything to spook the CU.