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Need help managing credit cards and debt

Contributor

Need help managing credit cards and debt

Hello,

 

So I recently applied for 3 cards and was instantly approved for them. I now have total of 6 cards and I know it will get tough for me to manage them. Also I was approved for AMEX everyday with 0% balance transfer fees, so I need some help managing my debt too. Completely a newbee when it comes to balance transfer!! I have few scenarios in mind, I would really appreciate it, if you can help me out!

 

1) Can I merge my CapOne plat and QS? I can pay off CapOne plat and ask for account merge and then do a PC to Savor (if available). Statement date for both these cards is the same, so once I do this, will it take effect immidietely and CapOne will be reported as closed on my report after the statement date?

 

2) I am carrying a balance of $1200 on my BofA rewards, so I was thinking I will do balance transfer to my new AMEX ED. How does balance transfer work? Does it mean that AMEX will pay directly to BofA and my BofA rewards will report $0 balance and I will carry $1200 on my AMEX? ($0 transfer fees and 0% APR fees for 15 months). 

 

3) How often can I request a balance transfer? Is there a inquiry for a balance transfer? Does it affect your credit score in anyway?

 

4) I was also approved for venture and need to spend $5k in 3 months. It says they will let me know the minimum payment. Any idea how is the minimum payment calculated?

 

Thanks,

21 REPLIES
Community Leader
Senior Contributor

Re: Need help managing credit cards and debt

Savor and SavorOne PCs haven't been available since the revisions to the cards this past August. I'd expect that to change in a few months.

 

The only reason I can think of not to merge the Capital One cards is if the card being closed is several years older than your second oldest card. You can probably go ahead and merge them.

 

I'd go ahead and transfer simply to eliminate interest. Note that if the AMEX limit is less than the BoA limit, your scores might go down a bit for a while. Saving money would trump a temporary loss of a few points, though. If the AMEX limit is substantially larger than BoA, your score might rise.

 

Balance transfers don't generate inquiries. I'll save the other details of balance transfers for those who are better able to explain it.

Message 2 of 22
Community Leader
Super Contributor

Re: Need help managing credit cards and debt

If you are having trouble managing a few cards , why would you app 3 more in addition one that requires you spend 5k for a bonus?. I would concentrate and paying down current debt before accruing more debt for the sake of a Sub. Just an average penny for the daySmiley Wink
Message 3 of 22
Contributor

Re: Need help managing credit cards and debt


@HeavenOhio wrote:

Savor and SavorOne PCs haven't been available since the revisions to the cards this past August. I'd expect that to change in a few months.

 

The only reason I can think of not to merge the Capital One cards is if the card being closed is several years older than your second oldest card. You can probably go ahead and merge them.

 

I'd go ahead and transfer simply to eliminate interest. Note that if the AMEX limit is less than the BoA limit, your scores might go down a bit for a while. Saving money would trump a temporary loss of a few points, though. If the AMEX limit is substantially larger than BoA, your score might rise.

 

Balance transfers don't generate inquiries. I'll save the other details of balance transfers for those who are better able to explain it.


Thank you Heaven! 

 

Both of my CapOne cards are same age, Plat is just a month older. I have 3 cards and once the merge take effects, I believe it will affect my credit score since I have been doing AZEO. SO was wondering how long after product merge will they close the first account and report it as closed. 

 

And I completely agree with saving interest, even if I have to take a small hit on my credit. 

 

Appreciate your help!

Message 4 of 22
Contributor

Re: Need help managing credit cards and debt


@AverageJoesCredit wrote:
If you are having trouble managing a few cards , why would you app 3 more in addition one that requires you spend 5k for a bonus?. I would concentrate and paying down current debt before accruing more debt for the sake of a Sub. Just an average penny for the daySmiley Wink

Thank you Jose!

 

Trouble managing cards as in, I dont want to carry so many cards in my wallet lol. I completely understand what you are saying, but I do AZEO monthly so paying down the balance is not a problem.

 

But since I am getting married, unfortunately I will have to carry a small balance of $1200 and hence I asked about the balance transfer to AMEX.

 

Appreciate your help! Smiley Happy

Message 5 of 22
Frequent Contributor

Re: Need help managing credit cards and debt


@alybutt92 wrote:

 

4) I was also approved for venture and need to spend $5k in 3 months. It says they will let me know the minimum payment. Any idea how is the minimum payment calculated?

 

 


These are extremely dangerous financial waters that you're in.  Couple things that stand out to me:  "need to spend x dollars", "minimum payment",  "need help managing debt".  Lots of red flags.

 

First, your personal finance health should always take priority to credit.  Don't spend more than you normally would just because you're using a credit card or "need" to hit a bonus.  You should spend as if you're using straight cash, and then paying them off in full always.  If you don't have the discipline to do this, you'd be best to get rid of the credit cards -- this is why Dave Ramsey is correct for 99% of people.  Never think of a credit card bonus as something you "must hit", otherwise you'll end up spending more than you normally would.   Spending more and then carrying a balance negates any small bonus you receive, and your credit cards are costing you a lot of money.  Credit cards are a tool to make you money.  If they are costing you money, they should not be used.



Message 6 of 22
Contributor

Re: Need help managing credit cards and debt


@dustinst22 wrote:

@alybutt92 wrote:

 

4) I was also approved for venture and need to spend $5k in 3 months. It says they will let me know the minimum payment. Any idea how is the minimum payment calculated?

 

 


These are extremely dangerous financial waters that you're in.  Couple things that stand out to me:  "need to spend x dollars", "minimum payment",  "need help managing debt".  Lots of red flags.

 

First, your personal finance health should always take priority to credit.  Don't spend more than you normally would just because you're using a credit card or "need" to hit a bonus.  You should spend as if you're using straight cash, and then paying them off in full always.  If you don't have the discipline to do this, you'd be best to get rid of the credit cards -- this is why Dave Ramsey is correct for 99% of people.  Never think of a credit card bonus as something you "must hit", otherwise you'll end up spending more than you normally would.   Spending more and then carrying a balance negates any small bonus you receive, and your credit cards are costing you a lot of money.  Credit cards are a tool to make you money.  If they are costing you money, they should not be used.


Thank you Dustin! 

 

I completely understand that I have to be careful when it comes to managing debt. Also love the quote "Credit cards are a tool to make you money".

 

The reason I asked about carrying a small balance of $1200 is because I am going to get married, and would like to have some extra cash in hand. I rarely carry any balance. I asked about minimum payment because I was curious to know, how it is calculated. 

 

I think I will hit the $5k spending requirement due to wedding expenses, but was wondering if I can save on the interest, thats why I asked about mutiple balance transfer. I can PIF $5k but if I can have some more cash for my wedding, I would love it! I always PIF my cards and once I am done with my wedding expenses, I will PIF again. 

 

So the debt I will have to carry, will be only until Feb end. 

Message 7 of 22
Community Leader
Valued Contributor

Re: Need help managing credit cards and debt


@dustinst22 wrote:

@alybutt92 wrote:

 

4) I was also approved for venture and need to spend $5k in 3 months. It says they will let me know the minimum payment. Any idea how is the minimum payment calculated?

 

 


These are extremely dangerous financial waters that you're in.  Couple things that stand out to me:  "need to spend x dollars", "minimum payment",  "need help managing debt".  Lots of red flags.

 

First, your personal finance health should always take priority to credit.  Don't spend more than you normally would just because you're using a credit card or "need" to hit a bonus.  You should spend as if you're using straight cash, and then paying them off in full always.  If you don't have the discipline to do this, you'd be best to get rid of the credit cards -- this is why Dave Ramsey is correct for 99% of people.  Never think of a credit card bonus as something you "must hit", otherwise you'll end up spending more than you normally would.   Spending more and then carrying a balance negates any small bonus you receive, and your credit cards are costing you a lot of money.  Credit cards are a tool to make you money.  If they are costing you money, they should not be used.


I don't think OP had this in mind when he asked very specific questions. 

If they wanted our help/judgement  in determining whether he's credit worthy or not, he would have asked. 

 

Message 8 of 22
Super Contributor

Re: Need help managing credit cards and debt


@alybutt92 wrote:

@dustinst22 wrote:

@alybutt92 wrote:

 

4) I was also approved for venture and need to spend $5k in 3 months. It says they will let me know the minimum payment. Any idea how is the minimum payment calculated?

 

 


These are extremely dangerous financial waters that you're in.  Couple things that stand out to me:  "need to spend x dollars", "minimum payment",  "need help managing debt".  Lots of red flags.

 

First, your personal finance health should always take priority to credit.  Don't spend more than you normally would just because you're using a credit card or "need" to hit a bonus.  You should spend as if you're using straight cash, and then paying them off in full always.  If you don't have the discipline to do this, you'd be best to get rid of the credit cards -- this is why Dave Ramsey is correct for 99% of people.  Never think of a credit card bonus as something you "must hit", otherwise you'll end up spending more than you normally would.   Spending more and then carrying a balance negates any small bonus you receive, and your credit cards are costing you a lot of money.  Credit cards are a tool to make you money.  If they are costing you money, they should not be used.


Thank you Dustin! 

 

I completely understand that I have to be careful when it comes to managing debt. Also love the quote "Credit cards are a tool to make you money".

 

The reason I asked about carrying a small balance of $1200 is because I am going to get married, and would like to have some extra cash in hand. I rarely carry any balance. I asked about minimum payment because I was curious to know, how it is calculated. 

 

I think I will hit the $5k spending requirement due to wedding expenses, but was wondering if I can save on the interest, thats why I asked about mutiple balance transfer. I can PIF $5k but if I can have some more cash for my wedding, I would love it! I always PIF my cards and once I am done with my wedding expenses, I will PIF again. 

 

So the debt I will have to carry, will be only until Feb end. 


Don't use balance transfers to save on interest, unless you have accounts with no balance transfer fee. The balance transfer fees are worse than interest, especially if you use them on a short term basis.

 

IMHO, since you don't want complexity, you should avoid balance transfers, avoid new accounts, and avoid consolidating accounts.

 

Just chill out, forget about the credit stuff, and concentrate on your spouse to be. And don't spend too much on wedding and marriage related stuff, it's your life after the wedding that counts.

 

And credit cards are not a way to make money unless you own a bank.


FICO8 EQ 755 TU 777 EX 752 Total revolving limits 643900 (533900 reporting)
Message 9 of 22
Contributor

Re: Need help managing credit cards and debt


@Remedios wrote:


I don't think OP had this in mind when he asked very specific questions. 

If they wanted our help/judgement  in determining whether he's credit worthy or not, he would have asked. 

 


I really didn't. I can definitely PIF everything which I have been doing since I learned about AZEO on this forum. Asked about balance transfer because of my wedding and would like to have some extra cash. Smiley Sad

Message 10 of 22