New card thoughts...

[tcbofade]

*steering thread back on topic...*

OK, so I've done ONE BT for $500.

I've set up ONE recurring charge of less than $100 per month.

I've still got about $1300 worth of room for 0% BT's and cannot figure out which balances to transfer.

Simply transfer the highest interest rate balance, or see which transfers will reduce my monthly minimums the most?  Or use BT's to lower DW's util?

I feel like I'm wrong either way.

...the 0% offer ends this week, so I need to decide what I'm doing.

Thoughts?

[Anonymous]

Well it depends on your goals.  If you are trying to save money, transfer the highest % first.  If you are trying to improve your own FICO score, transfer the lower balances and reduce overall utilzation, and if your wife's utlization is hurting her FICO score more than yours is hurting your own, transfer hers.  I don't think you're "wrong" whichever way, it's just what you want to see as your end result.  In a year, you'll have paid most of all your cards down anyway.

[Anonymous]

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@tcbofade wrote:

Thanks all for the input...and you're all certainly correct.

As difficult as it may seem, we have managed to pay off one account every month of 2012...thus far...and we'll keep at it.  We've got a long way to go...you're only looking at about 1/3 of our CC spreadsheet.

We ARE reducing our total debt month by month...but I'm also interested in moving higher interest balances to zero percent deals...it seems silly not to.

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Awesome job. Much better than I am doing

[tcbofade]

How's that?

No offense, but you've got better scores than I do...I'd think that you can qualify for the zero percent BT deals...

[Anonymous]

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@tcbofade wrote:

How's that?

No offense, but you've got better scores than I do...I'd think that you can qualify for the zero percent BT deals...

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My scores have just started creeping up. I've got some baddies that are holding me back, too. I haven't applied for a major CC since 2009 when I last got a Cap1 with a fabulous CL of $500. I'm going to try for a CU card later in the year when my baddies are over 3 years old and most of my debt is gone.

You must be doing something right because no one would touch me when I really needed the BT offers.

[LS2982]

I hope I dont ever have to utilize BT's, I have to keep being smart with my cards and spent within my means! However I understand certain situations need it.

[tcbofade]

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@Anonymous wrote:

You must be doing something right because no one would touch me when I really needed the BT offers.

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Ah.  Your scores are better than mine, but I have NO baddies on any of my CR's...just high utilization, and too many inquiries.

[tcbofade]

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@LS2982 wrote:
I hope I dont ever have to utilize BT's, I have to keep being smart with my cards and spent within my means! However I understand certain situations need it.

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Well, yay you, Mr. Self Restraint. 

Whether "smart" or not, my wife and I used plastic to get us through a seven month stretch of her being without a job last year...we're making progress, and are getting better and better cards...I just don't want to screw up the recovery effort. 

[Anonymous]

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@LS2982 wrote:
I hope I dont ever have to utilize BT's, I have to keep being smart with my cards and spent within my means! However I understand certain situations need it.

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BT's aren't always that bad. I plan on getting a ipad or Macbook when my Discover comes in! It beats paying interest...

[thebanjoman]

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@tcbofade wrote:

Simply transfer the highest interest rate balance, or see which transfers will reduce my monthly minimums the most?  Or use BT's to lower DW's util?

I feel like I'm wrong either way.

...the 0% offer ends this week, so I need to decide what I'm doing.

Thoughts?

---

If you've got a good BT offer, use it to accelerate your plan, not change it up.  You've paid off a card a month so far, so your strategy seems to be working, why change it up?  If you're targeting low balance cards in hopes of freeing up monthly-minimum cap room; use the offer to drop a slew of cards (preferably low limit cards with high utilization, like PC3/PC7).  If your existing plan is calling for attacking high interest rate cards, use it to drop or eliminate the balances on the worst of your interest rates.

The only reason I'd see to make an exception and target DWs utilization only is if I had thought the targeted efforts would yield a 0% BT for DW with a likely similar size CL or larger.