Hey everyone! I'm looking for some advice, especially from you Chase Gurus!
So here's the deal. Mom has 2 cards with chase:
10,000 Slate with 66% utilization, 0% APR until 3/2016.
4,000 Freedom with 40% utilization, 0% APR until 6/2015.
So since the intro APR is ending on the Freedom, we will PIF the card. THEN, I would like to move as much of the limit (heard it will be $3500 at max) to the Slate, to lower the UTIL on the Slate.
Now here is my question. Is this a smart move? Will it spook lenders to see that the limit on the Freedom suddenly plummeted? Futhermore, keep the card open and SD it or close it and reopen it once 2 year since opening passes, to reap the intro benefits once again? Thanks!
@Kostya1992 wrote:Hey everyone! I'm looking for some advice, especially from you Chase Gurus!
So here's the deal. Mom has 2 cards with chase:
10,000 Slate with 66% utilization, 0% APR until 3/2016.
4,000 Freedom with 40% utilization, 0% APR until 6/2015.
So since the intro APR is ending on the Freedom, we will PIF the card. THEN, I would like to move as much of the limit (heard it will be $3500 at max) to the Slate, to lower the UTIL on the Slate.
Now here is my question. Is this a smart move? Will it spook lenders to see that the limit on the Freedom suddenly plummeted? Futhermore, keep the card open and SD it or close it and reopen it once 2 year since opening passes, to reap the intro benefits once again? Thanks!
With the recent changes in how chase is viewing new accounts and depending on if your mother has four or more cards (or may pick up four or more cards in the next two years) I wouldn't be closing a Chase account that she would like to be able to use in the future. Also, there is no guarantee that two years from now that bonus offer will be around or that Chase won't change their rules again and say that anyone who had the card in the past cant get the bonus/ apr offer again. Two years is a long time. Therefore I would suggest SD it instead of close regardless of what you do with the credit line.
;Thing is she loves to carry balances so the Freedom, even with the rewards, will not be worth it because it's at an awful %22.99 APR. Basically I think we will just keep it and transffer as much of the limit as we can do the Slate.
Furthermore, we plan to pay off the Slate along with her AMEX with a Discover BT next summer, given that they keep spamming her with their 0% 18month intro with a $0 BT fee.
@Anonymous wrote:
if she loves to carry balances then she really just needs to pay it as much as possible but never use any cards. luckily she doesn't sound to be too much in the hole, just keep on keepin on. it's a slow process.
That's why I just keep chaining 0% APR cards for her. Once 0% APR ends I just get her a new card. So carrying a balance is perfectly fine. She is by no means in the hole, just taking advantage of the 0% APR and saving the cash.
@Anonymous wrote:
i do understand your point and yeah paying for it in be cheapest way possible is always best but no offense credit card debt is "in the hole"
granted it's not hard to get out with that method
This is besides the point but it really depends on how responsible you are. Someone could exploit the 0% APR period and invest the money into a CD or a Savings Account instead of paying it off, making a little extra in the whole process. Besides, I transferred her Federal Student Loan to the Slate, so if anything this is "out of the hole" 