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Should I get a new BT card

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ecxpa
Valued Contributor

Should I get a new BT card

Just finished a remodeling project and have about 4.5K in charges on my NFCU and PenFed cards...........I have a Discover Card with a 19.5K CL and am carrying a 1.5K BT on this card already from my Lowes card.  Should I just use more of my limit on the Discover card or try for the Citi Diamond.   I am looking to retirement in a year and just bought a new Toyota Highlander which I plan to pay off in 6mos......that is why I am carrying balances now.  In other words is it worth it to get a BT card?

Message 1 of 10
9 REPLIES 9
wasCB14
Super Contributor

Re: Should I get a new BT card


@ecxpa wrote:

Just finished a remodeling project and have about 4.5K in charges on my NFCU and PenFed cards...........I have a Discover Card with a 19.5K CL and am carrying a 1.5K BT on this card already from my Lowes card.  Should I just use more of my limit on the Discover card or try for the Citi Diamond.   I am looking to retirement in a year and just bought a new Toyota Highlander which I plan to pay off in 6mos......that is why I am carrying balances now.  In other words is it worth it to get a BT card?


Call Discover and ask if you can get a special BT offer. You don't have to take the risk of getting a bad SL.

 

I assume you have a strong pension or retirement account? At first glance, the combination of buying a $40k-ish new car, needing to finance it (even if just for six months), and being about to retire sounds risky to me. Or are you getting 0% or some super-super-low APR for those six months?

Personal spend: Amex Gold, Amex Schwab Plat., BofA PR+CCR(x2), Costco
Business use: Amex Bus. Plat., BBP, Lowes Amex AU, CFU AU
Perks: Delta Plat., United Explorer, IHG49, Hyatt, "Old SPG"
Mostly SD: Freedom Flex, Freedom, Arrival
Upgrade/Downgrade games: ED, BCE
SUB chasing: AA Platinum Select
Message 2 of 10
medicgrrl
Valued Contributor

Re: Should I get a new BT card

Are you carrying a total of 4.5 with NFCU and PenFed or is that on each card?

What's the interest rate on the vehicle?

It's hard to make a recommendation without crunching numbers. Does the Diamond have a BT fee? Depending on the vehicle financing and the BT fee, you may be better off paying the cc debt ASAP and paying off the vehicle over 12 months instead of 6.


EQ 778 EXP 782 TU 729
Message 3 of 10
ecxpa
Valued Contributor

Re: Should I get a new BT card


@wasCB14 wrote:

@ecxpa wrote:

Just finished a remodeling project and have about 4.5K in charges on my NFCU and PenFed cards...........I have a Discover Card with a 19.5K CL and am carrying a 1.5K BT on this card already from my Lowes card.  Should I just use more of my limit on the Discover card or try for the Citi Diamond.   I am looking to retirement in a year and just bought a new Toyota Highlander which I plan to pay off in 6mos......that is why I am carrying balances now.  In other words is it worth it to get a BT card?


Call Discover and ask if you can get a special BT offer. You don't have to take the risk of getting a bad SL.

 

I assume you have a strong pension or retirement account? At first glance, the combination of buying a $40k-ish new car, needing to finance it (even if just for six months), and being about to retire sounds risky to me. Or are you getting 0% or some super-super-low APR for those six months?


So.....are people not suppose to buy new cars when they retire????????......or must they pay cash for them?  What's risky about  it?  If one can't afford to get what they want when they retire maybe they shouldn't retire.  Yes I do have a nice retirement package with income close to 100K without withdrawals from my 4013b.    

 

 

@I do have a BT offer from Discover even though I have a small BT from them already.   I just don't like carrying any balance on a credit card more than 10-20% of the limit even if it is @ 0%.  If I add all the 4.5k to my current Discover CL that will put me around 6K which is a tad over 30% of my CL with discover.

Message 4 of 10
ecxpa
Valued Contributor

Re: Should I get a new BT card


@medicgrrl wrote:
Are you carrying a total of 4.5 with NFCU and PenFed or is that on each card?

What's the interest rate on the vehicle?

It's hard to make a recommendation without crunching numbers. Does the Diamond have a BT fee? Depending on the vehicle financing and the BT fee, you may be better off paying the cc debt ASAP and paying off the vehicle over 12 months instead of 6.

The 4.5K is total between the two cards, interest rate of the vehicle is 2.8%.    You are right though, maybe I should pay the CC in a couple of payments; but I still will pay the vehicle off in 6 mos with a little tightening of the beltSmiley Very Happy

Message 5 of 10
HeavenOhio
Senior Contributor

Re: Should I get a new BT card

I don't see anything risky here. Smiley Happy

 

One option I see is to transfer as much as you're comfortable with to the Discover card, spend a couple more months paying off the vehicle, and pay the leftover credit card balances directly.

 

Or you can go with a new card. I think the starting limit will likely be fine. But if it's lower than you expect, I'd still bet on the new card and the Discover card being able to absorb the $4,500 you wish to transfer.

Message 6 of 10
wasCB14
Super Contributor

Re: Should I get a new BT card


@ecxpa wrote:

@wasCB14 wrote:

@ecxpa wrote:

Just finished a remodeling project and have about 4.5K in charges on my NFCU and PenFed cards...........I have a Discover Card with a 19.5K CL and am carrying a 1.5K BT on this card already from my Lowes card.  Should I just use more of my limit on the Discover card or try for the Citi Diamond.   I am looking to retirement in a year and just bought a new Toyota Highlander which I plan to pay off in 6mos......that is why I am carrying balances now.  In other words is it worth it to get a BT card?


Call Discover and ask if you can get a special BT offer. You don't have to take the risk of getting a bad SL.

 

I assume you have a strong pension or retirement account? At first glance, the combination of buying a $40k-ish new car, needing to finance it (even if just for six months), and being about to retire sounds risky to me. Or are you getting 0% or some super-super-low APR for those six months?


So.....are people not suppose to buy new cars when they retire????????......or must they pay cash for them?  What's risky about  it?  If one can't afford to get what they want when they retire maybe they shouldn't retire.  Yes I do have a nice retirement package with income close to 100K without withdrawals from my 4013b.    

 

 

@I do have a BT offer from Discover even though I have a small BT from them already.   I just don't like carrying any balance on a credit card more than 10-20% of the limit even if it is @ 0%.  If I add all the 4.5k to my current Discover CL that will put me around 6K which is a tad over 30% of my CL with discover.


Had you lacked a strong retirement plan (or some other illiquid/unwise to liquidate source of income), it would suggest a heavy reliance on liquid funds in taxable accounts.

 

If you were very dependent on liquid, taxable funds but were concerned about spending $40k at once, it would suggest insufficient savings to maintain a lifestyle where you can drive a $40k car.

 

Having $100k in retirement income certainly means you can afford it. I just expected a strong earner to have more liquid on the edge of retirement.

Personal spend: Amex Gold, Amex Schwab Plat., BofA PR+CCR(x2), Costco
Business use: Amex Bus. Plat., BBP, Lowes Amex AU, CFU AU
Perks: Delta Plat., United Explorer, IHG49, Hyatt, "Old SPG"
Mostly SD: Freedom Flex, Freedom, Arrival
Upgrade/Downgrade games: ED, BCE
SUB chasing: AA Platinum Select
Message 7 of 10
medicgrrl
Valued Contributor

Re: Should I get a new BT card

It sounds like you have great income and assets. I'm not sure the BT fee would be worth it for a short term transfer. You would have to crunch the numbers to see if you would actually come out ahead on that.


EQ 778 EXP 782 TU 729
Message 8 of 10
Anonymous
Not applicable

Re: Should I get a new BT card

Lets please keep the replies focused on excpa's question regarding a BT card.  His personal financial situation is his business and not germane to the question nor did he ask for that kind of advice.  Thank you.

Message 9 of 10
AverageJoesCredit
Legendary Contributor

Re: Should I get a new BT card

I would just utilize the Discover card, if you plan to pay it down within the year, why open a new tradelineSmiley Wink You never know maybe theyll reward you with a cliSmiley Wink
Message 10 of 10
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