Need help with determining which Credit Card would be the best

[takeshi74]

---

@Anonymous wrote:

Here is my situation. Currently only have one credit card, BoA Alaskan Airlines (since 2008) that is pretty much maxed, $6k balance on a $7k limit. I would like to open another card with a 0% balance transfer to help me pay this down as well as lower my utilization. 

---

Nothing will be best for that situation other than paying down the balance on that card.  Revolving utilization is a major scoring and risk factor.  It falls under Amounts Owed below:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

With 85% utilization you're going to have a hard time getting approved.  Even if approved you're going to get a low limit and a high APR.  Don't count on a new card to reduce your utilization.

---

@Anonymous wrote:

I have been comparing the Chase Freedom, Slate and Discover IT and wanted to see what your experiences were and what chances you think I have of qualifying for each card. Which card would be best for my situation?

---

Let me give you an example of how constricting high utilization can be.  I was in a similar boat but I had more cards and, aside from utilization over 60% a solid credit profile in good standing.  However, Chase would only approve me for a $2K Slate with the highest APR offered at the time.  It was completely useless.  I was able to get my utilization down to under 10% (I think close to 2%) 6 months later.  At that point I had 2 instant approvals within a day of each other.  Each of those Chase cards were approved for $25K.  Approvals at that point were qualifying for the lowest APR on cards with ranges.

I'm not saying that you'll get $25K when you lower your utilization.  Again, just demonstrating how constricting high utilization can be,

If you're going to app then you want your credit to be in the best possible shape.  At 85% on your only card you're a long way from that.  I know that's not what you want to hear but it would be unreaslistic IMO to encourage to to expect a card useful for BT and for lowering your utilization.

[Anonymous]

So I filled out pre-qualified apps for 4 companies....

Citi - Citi Diamond - 0% purchase and BT for 9 months, 3% BT fee, no rewards

Chase - No offers

Discover - Discover IT - 0% purchase and BT for 12 months, 3% BT fee plus the cashback rewards

Cap1 - Quicksilver - 0% purchase and BT until March 2016 plus 1.5% cash back on everything.

I am leaning towards the Discover card to start, should I try and transfer my total 6K balance or just half? Any suggestions.

[Anonymous]

The Discover pre qualification is useless. Not saying you won't get approved but you can't rely on their preapproval. Don't rely completely on the preapprovals. It doesn't mean that you won't get approved for other cards or even 100% that you will get approved for the ones listed. I still think the Simplicity card is a good idea for you. Whatever card you apply for put the whole $6K as the transfer amount.

[Anonymous]

Just applied for Simplicity and was declined :/ 

[Anonymous]

---

@Anonymous wrote:

Just applied for Simplicity and was declined :/ 

---

Eh, I'm sorry.  Was any reason given?  You can try one other card (probably the CapOne would be the easiest.  I fear your major obstacle is the current high balance on your existing card.

[OmarGB9]

Unfortunately I would have to go with the majority on this one. High utilization looks scary to lenders. I speak from experience. My only card used to be a WF Platinum which I constantly kept at around 60-90% of my limit. I applied for the cap1 quicksilver and got approved, but with a small $300 limit and the highest (I believe) APR they offer of 24.9% after my introductory 0% promo expires.

So even if you do get approved for another card, brace yourself for a low limit and high APRs.

[Anonymous]

Bummer, I guess my best bet is to pay down my current card (12.7%) to a 30% or less and apply again in 6 months.

[Anonymous]

---

@Anonymous wrote:

Bummer, I guess my best bet is to pay down my current card (12.7%) to a 30% or less and apply again in 6 months.

---

Probably the best route.  Hang in there.  The one HP won't kill you. At least your current card isn't 24.99% APR and once you get it down below 30% you shouldn't gave any problems with approvals

[OmarGB9]

Yes unfortunately that's your best bet. And be glad like Irish said your APR isn't nearly as high as the one I got. Lol. Make multiple payments a month if you can. That way you save on interest.

[Anonymous]

I think you will get a very nice limit on the Capital One QuickSilver. If you are pre-approved for the QuickSilver regular with no AF, you will also most likely get approved for the Platinum Prestige, which has 0% on BT's until Spetember 2016. I would strongly recommend applying for the Quicksilver, hopefully you get 5k or at least 3k. Then apply right away for the Platinum Prestige and you can BT the rest!
I've heard anecdotal stories that if you check the box saying you intend to do a BT during the application, you are likely to get a higher SL.
Either way, I strongly advise you to go with CapOne. They have been very good to people lately and I think they can get all of your existing balance at 0% for at least 9-15 months! By then, you will be in a much better position especially because you will have much lower balance and util, plus two good accounts!

While it's generally not a good idea to keep moving balances around, in your case I think it's in you best interest to not only get lower APR, even if it's only temporary, and get higher CL's and more credit history. I am confident you will get approved if you got the pre-approval from Cap One, and I am confident that this is your best option right now!

Let us know how it works!