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My Plan to Reach 200K in CLs and BT 115k

CreditInspired
Super Contributor

Re: My Plan to Reach 200K in CLs and BT 115k


@zarour24 wrote:

Thank you, if AA occurs and accounts are shut down, how does that read on a credit report? Closed Account?


Account Closed by Creditor.

 

If the balance is high when the account is shut down, your card will always be maxed out. Example: CL $0. Balance $9.3K. And I think this still negatively affects your Aggregate UT. However, as long as you continue making the minimum payment, it will not go to collections.

 

If the balance is $0, it will read "Paid as Agreed," but still Closed by Creditor.


DEC 2019: EX 816, TU 820, EQ 810
DEC 2018: EX 777, TU 783, EQ 799

|| AmX Cash Magnet $40.5K || NFCU CashRewards $30K || Discover IT $24.7K || Macy's $20K || NFCU CLOC $15K || CitiCostco $12.7K || NFCU Platinum $12.5K || Apple Card $6.5K ||
Message 31 of 69
zarour24
Established Member

Re: My Plan to Reach 200K in CLs and BT 115k

I would like to increase how much I pay, but with finance charges, its not moving as fast as I'd like. Though the debt is large, its not unmanageble. I would just like to get into a more favorable position. Its a short term goal and I'm not too concerned with keeping the limits once everything is transfered. If I'm balance chased, so be it. 

 

None of the debt is currently in my name, so my options should be as good as they can be at this time to apply for new TLs.

 

I'm am very lucky to get the family support I do, as for being a slippy slope, the only thing I can see is if for some reason the income stops. Though it is unlikey, it is a consideration to get the debt into my name and preserve others credit if something were to happen. 

Message 32 of 69
ImTheDevil
Community Leader
Super Contributor

Re: My Plan to Reach 200K in CLs and BT 115k

I’ll go piecemeal with the last reply:

“I would like to increase how much I pay, but with finance charges, its not moving as fast as I'd like.”

Finance charges on a hundred grand are going to be considerable, no way around that. Rather than having more of the $8k/month go against principal, which isn’t going to happen until balances are substantially reduced, you need to throw more money at the debts. As stated above, throw $10k per month at it. Live on $5k/month. If that means getting rid of cable TV and other niceties, so be it. I’m not condemning nor am I trying to assume how you live, but keeping $7k/month to live on is definitely not as lean a lifestyle as one can live, not as lean as (in my mind) one should live when trying to pay off $115k of personal debt being carried by others.

“Though the debt is large, its not unmanageble. I would just like to get into a more favorable position. Its a short term goal and I'm not too concerned with keeping the limits once everything is transfered. If I'm balance chased, so be it.”

With your income it definitely is not unmanageable. It’s more easily managed by putting more money every month against what is owed. Doing so will hasten your arrival at a point that is financially more favorable.

As for not being concerned with keeping limits and being balance-chases, this should very much be a concern. As stated above, getting shut down means every card is perpetually maxed out and your score is in the toilet. This may lead to lenders deciding to sue, especially when they see how many other lenders are maxed out - your profile is young and thin with very little to prop it up. Getting sued may speed up the timeframe that you have to pay back the debts. And the problem isn’t keeping the high limits, it’s getting them in the first place. No one is going to amass $150k or more in credit lines in a matter of weeks. And doing it slowly, as is the way it happens, and then transferring big balances onto new lines as you get them, will very quickly stop lenders from extending you credit.

“None of the debt is currently in my name, so my options should be as good as they can be at this time to apply for new TLs.”

See above regarding the time it takes to get those large limits in a quantity big enough to take your debt back.

“I'm am very lucky to get the family support I do, as for being a slippy slope, the only thing I can see is if for some reason the income stops.”

Unlikely maybe but it can happen. Illness, accident, market changes, all of them happen and destroy businesses. No one is immune - it can happen.

“Though it is unlikey, it is a consideration to get the debt into my name and preserve others credit if something were to happen.”

Definitely this. I think what someone else said is best - increase what you pay each month and snowball it. Pay 10% above minimum on all debts but one, and throw the remainder of $10-11k each month at one until it’s paid off. Then roll those payments into the next debt and so on. You can be free and clear in a year if you dig deep enough.


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Message 33 of 69
Aim_High
Senior Contributor

Re: My Plan to Reach 200K in CLs and BT 115k


@zarour24 wrote:

OP, please use the "Quote" button on reply box or reference the remarks you are replying to in the thread since replying in general makes it more difficult to understand your answers in the context of a multi-party conversation.  Thanks!  Smiley Happy

 

*Select "Reply" below the remark you are answering,

then look for the "quote" button and it will reference

those particular remarks in the thread. 



Length of Credit > 35 years; Total Credit Limits > $500K
AoOA > 28 years (Jun 1993); AoYA (Aug 2020); Gardening since 08/15/20.
* Hover cursor over cards to see name & CL, or press & hold on mobile app.
Message 34 of 69
Aim_High
Senior Contributor

Re: My Plan to Reach 200K in CLs and BT 115k


@zarour24 wrote:
I would appreciate some guidance on how to get an additional 160K in CLs to bring my total to 200k
How would you go about achieving this goal of 200K and 115K Balance Transfer?

All the previous answers are right on target.

This just isn't going to happen.

And you don't seem to understand that

credit card BTs are not for six-figure balances.

 

High credit lines are earned over many years with a lender.

Nobody goes from $40K TCL to $200K TCL overnight. 

That is a 5x increase in your limits!!  Unheard of. 

 

High credit lines are normally given to people who have demonstrated great trust over long periods of time.

If a lender allows someone to put huge balances on cards, it is normally because they have worked up to those balances, they are spending and paying off large balances month-after-month on time, and have shown they can afford to do so.  They don't get high-limit cards and then transfer high balances. 

 

No lender is going to feel comfortable approving you with a line of credit, and then having some huge balance transfer debt which was not indicated on the credit report they pulled for the approval show up on your card. 

 

I agree that you need to just tighten your belt and pay this debt down more for awhile.  Maybe you can transfer some to BT offers very slowly over time but most of it will just need to be paid down.  With your income, you should be able to afford to do so. 



Length of Credit > 35 years; Total Credit Limits > $500K
AoOA > 28 years (Jun 1993); AoYA (Aug 2020); Gardening since 08/15/20.
* Hover cursor over cards to see name & CL, or press & hold on mobile app.
Message 35 of 69
frogman1
Valued Contributor

Re: My Plan to Reach 200K in CLs and BT 115k


@zarour24 wrote:

 

Moving the debt out of their names will also improve their ability to do this cycle again in the future - if needed. 

 

 


Smiley Surprised


I am not sure what you are up to but I don't understand why you would have your relatives charge these kind of high limits on high interest rate cards.  Seems like if that was your only option it wasn't a well thought out plan.  

 

I have $350k of limits but I don't carry a balance. 

 

Amex has plan it feature which they have offers of 0 fees from time to time. But this isn't balance transfers.  Citi constantly sends me BT checks but I think they charge fees.  I know NFCU had 0 percent transfer with not fees before.   I think there is an Amex card that offers 0 percent introductory rate with 0 percent fees.  I get 30k limits with Amex.  Not sure what they will give you but no harm in applying. 

 

 

More cards than I can mention in a signature.
Message 36 of 69
ImTheDevil
Community Leader
Super Contributor

Re: My Plan to Reach 200K in CLs and BT 115k

^^^ someone upthread alluded to a $5k limit on BTs with Amex. I’ve also seen that number mentioned multiple times around the forum. Not enough to even dent this debt right now.


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Message 37 of 69
NRB525
Super Contributor

Re: My Plan to Reach 200K in CLs and BT 115k


@zarour24 wrote:

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:

 

CreditorLimitBalance
AmEx18,700.0013,710.00
Barclays15,000.0010,031.00
BofA 27,600.0022,510.00
Cap110,000.009,287.00
Chase 51,300.0038,462.00
Citi 14,300.00

10,255.00

Chase 33,000

10,000.00

 

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?


Which of these has the highest APR? First step would be to look at paring that down with a BT to NFCU. It doesn’t clear everything but is a start.  Snowball type of plan.  

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
Message 38 of 69
chrisw1968uk
Frequent Contributor

Re: My Plan to Reach 200K in CLs and BT 115k

You say that you make $180k and scores in the 750's - yet you have no property - and have a secured $500 line with Cap One? Something is not adding up here

Message 39 of 69
AverageJoesCredit
Mega Contributor

Re: My Plan to Reach 200K in CLs and BT 115k

Great advice @ImTheDevil ! good point @chrisw1968uk though to be fair there are lots of high income earners here who seem to have starter cards i guess through some financial problems like bk etc.
Message 40 of 69
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