You will find it very difficult to maintain the $200k limits, presuming you get there, once you start BTing over $100k onto these cards. Virtually all your banks will start balance chasing you, limiting the future ability to kite these balances from bank to bank. I got away with it because it was pre-2009. After 2009 the game is up.
What are the exact terms and balances with these other family members? If you will have it paid off soon anyway, just work really hard to pay them. If they have specific cash requirements, maybe take some BT advances, but the remainder you pay over time.
With debt, any debt that is in an existing arrangement has advantages of knowing exactly what you are dealing with. Getting too creative to try to shift large debts around changes your risk profile, and changes the options you have to get out of the debt. Be careful.
I was also thinking of kiting but in a different way. OP, since family are NFCU members, your planned scenario could backfire if NFCU put eyes on the xfrs going back-and-forth between members. Example: Brother takes out a NFCU loan for $15K and you take out a loan 20 days later and pay off brother’s loan. And this type of pattern continues between family members. I think everyone’s accounts in this scenario could get shut down pronto. I’m not saying this is happening but what you’re thinking of doing is a very slippery slope. This is just my 2cents but I would advise against doing anything that put closer eyes on you and family members.
Thank you for your reply, I really appreciate your input. I haven't found the info I'm looking for online, and can only get that from someone like you who has experienced it - Your signiture tells a good story!
I understand that limits can be reduced after they are given and I'm running a fine line here. The balances I currently have are all on interest baring cards between 16 and 23%. The terms are I pay the debts as if they were my own cards - no time limit. I would like to get them off interest to pay them off more quickly, be more economical and ultimatly be fully responsible for the debt. Though I can "afford" to leave everything as is, I'd rather not waste if I dont have to! Here is the break down:
Creditor Limit Balance AmEx 18,700.00 13,710.00 Barclays 15,000.00 10,031.00 BofA 27,600.00 22,510.00 Cap1 10,000.00 9,287.00 Chase 51,300.00 38,462.00 Citi 14,300.00
Moving the debt out of their names will also improve their ability to do this cycle again in the future - if needed.
How would you tackle this?
I’m sorry that all my responses are doom and gloom but I feel like we dont have the whole picture.
Why would you take on this kind of debt if it’s not yours or did family members let you use their CCs to get your business started and now you need to find a way to pay them back. If this is it, I was going to suggest let them apply for 0% promo cards, but since the cards have extremely high UT, that won’t work.
So do you have a home you can refinance or anything collateral at all. I was also thinking of a PL for a much lower APR.
As others have said, this is going to be a difficult endeavor.
I'm thinking you would upset the new lenders, if they HP you now, they will not see the 115k that you currently owe - you get the new account then all of a sudden, 115k of "new debt" (as far as they are concerned) shows up - I think it would almost guarantee AA from them.
But I agree, you would want to get the debt out of other peoples names - I'd be P.O'd if you virtually maxed out my cards too, for that kind of money, i'd be looking at a HELOC
I somewhat disagree with many of the replies above in that the BT of the balances and elevating utilization would be a huge red flag and problem in and of itself. The more important issue or red flag is that the OP has negative information on his CR. THAT is the most important sign of elevated default risk, and that is the factor that magnifies any changes to his utilization.
I've known people that have had all of their revolving accounts, 7-8 of them, at 96%-100%+ utilization for a period of 12-18 months without any AA from any of the lenders. Why? Because negative information wasn't present and their profile was otherwise strong: thick, aged, not recently seeking credit, etc.
The #1 reason that the OP shouldn't try this is due to not having a clean file, IMO, not just because of the elevated utilization risk.
Family let me use their CCs - we all help each other. Your right, at the moment their Util. is high.
I dont have any assets to use.
A PL is another option, I havent researched that much yet. Do you have any suggestions?
Looks like my options are:
1) go as planned, deal with any consequences
2) BT some and pay the rest as is
4) Combination of BT, PL, Keep as is.
Thank you for the reply and consideration. I do have a great family and I know it is an unusual situation.
I do have a business - I recently switched from S.E. to an S-corp but I dont have much understanding of how to get TLs and estab credit.
I have some homework to do there.
Whats the worse that could happen if I do the CC BT route?
Honestly, I wouldn’t waste my time and energy thinking about the BT route. It’s just not going to happen as you’ve planned it out.
Your credit profile file is thin, young, and full of smallish limits and at least one secured card and has a recent late on it. It takes people YEARS to amass aggregate CLs of $160k+, not a few hours in front of a computer hitting apply.
Sorry, but you really need a new plan.
Best of luck to you.
@zarour24 wrote:I would appreciate some guidance on how to get an additional 160K in CLs to bring my total to 200kCurrently I have:NFCU Plat: 23,700 (0% Util.)BofA Cash Rewards: 8,200 (0% Util.)BankAmericard: 6,200 (0% Util.)Discover IT: 1,400 (0% Util.)Cap1Plat Secured: 500 (6% Util.)BofA Biz Advantage Cash: 1,000 (98% Util.) Doesn’t Report to CBsCredit Scores approx 750 ea. | AOA 3.9 yrs | Newest Acct.1.8 months | Income 180K+ Self EmployedNo collections, 1 30 day late 1 year ago with Chase Auto LoanJust set up an S-corp this month and have EIN if that helps.My goal for 200k is to Balance Transfer 115k onto 0% for the longest period with minimal fees and still have room to make an additional large purchase.I would like know what you think of my plan so far and more importantly how you would go about achieving this!Plan:Step 1. Chase Freedom/SlateStep 2. Chase Disney, Chase - Another Co-branded cardTake the co-branded cards and transfer the limits to the Freedom/Slate (Aiming for 75k+ CL)Chase InkReached 5/24Navy Fed Plat - Another 25k at 0%Citi SimplicityDiscoverAmerican ExpressHow would you go about achieving this goal of 200K and 115K Balance Transfer?
@zarour24 I'm going to be honest with you here in how I see it
This is not happening
You defaulted with Chase a year ago, In credit time, that's 5 min ago.
You obtaining three personal and one business card from them in short period of time is science fiction.
Citi might be a possibility, it will all hinge on how they evaluate such a recent late and excessive credit seeking (which is what you're planning). Also, while their cards grow, they are not known for stellar SLs. You have a huge debt, so stashing a few thousand on citi card wont accomplish much. Something is better than nothing, I guess
Second discover after seeking credit, that's always been a mixed bag. I would not hold my breath for a good SL there. It might happen, or it may not.
Last..Amex and high utilization plus recent derog, if you get a couple of thousand, I'd call that a win.
At this time, your profile screams "high risk".
You might need to start this the old fashioned way by reducing utilization first, then attempting to do BTs on the remainder of balances.