Re: What Should I Do??

Anonymous · ‎07-08-2016

Another option is take a HP. Call in and tell them you expected a higher SL for the citi diamond because you wanted to transfer that 6200 balance and see what the analyst would say...if you feel your profile is strong that is.

Good luck...closing the card would be a waste of 3800 in available credit at 0% imho.

Anonymous · ‎07-08-2016

@Anonymous wrote:
Hmm, sounds like a good plan.

But one thing though, isn't it bad to keep high utilizations on multiple cards? For example, let's say I transfer a full $3,800 of my balance onto that card. That's 100% maxed out... But my Discover account is holding about 60% utilization as well at the given time when I transfer the other half of the balance. Wouldn't that decrease my score by a lot or scare the creditors to start decreasing my limits or anything of that nature?

I'm just wondering if I would save more money monthly if I transfer the whole entire balance on my $11.2k Discover account and do the 4.99% APR for 18 months with a $0 transfer fee. Realistically as a college student right now until I get my real career, I want to have the lowest amount of money coming out of my bank account monthly to cover minimum payments.

Copper44 eluded to this (see bolded above) in his previous post. Is it your plan to pay down/off this debt or are you just looking to make minimum payments as you've stated above? If you intend to PIF the debt, than take advantage of both of the BTs from Discover and CITI. Don't max out your CITI card BT $1K to it. Make a $50 payment each month and it will be PIF before the 21 months period is over.

FYI... When you BT a balance to Discover and you use your card for purchases, you will be charged interest on all purchases if you are outside your 0% introductory period.

If you are transferring your balance to avoid paying interest and only intend to make minimum payments, then I strongly suggest you come up with another plan. This is never a good idea. You should never make charges that you cannot afford to pay back.

Best of luck!

Anonymous · ‎07-09-2016

I think my main focus right now is of course maintaining my good credit file for in the future when I pretty much will have no debt, but also right now keeping as much cash assets in my bank account as possible. I have enough money to pay that now-$7,000 balance down to $3,000 if I wanted... But I choose to keep my cash on hand.

One question I do have is how much would my minimum payment be if I did a balance transfer of $2,000 onto my Diamond Preferred? Is it still 1.5% of the balance how they rank your payments by or 1/48ths? I keep reading different things.

Anonymous · ‎07-09-2016

Jus a note;it will report closed on CR for 10yrs might as well have it shows open ...Any members have data points that show is it good or bad to show a new closed for 10yrs????

Bman70 · ‎07-09-2016

@Anonymous wrote:
I think my main focus right now is of course maintaining my good credit file for in the future when I pretty much will have no debt, but also right now keeping as much cash assets in my bank account as possible. I have enough money to pay that now-$7,000 balance down to $3,000 if I wanted... But I choose to keep my cash on hand.

One question I do have is how much would my minimum payment be if I did a balance transfer of $2,000 onto my Diamond Preferred? Is it still 1.5% of the balance how they rank your payments by or 1/48ths? I keep reading different things.

If your debts are greater than your assets, then the cash on hand isn't really an asset since you owe it. On a balance sheet that would be insolvency.

At $22k student income, with around ~$400? car payment, $7500 CC debt can be challenging to pay off. I've found its a major challenge to put all your extra money every month toward CC. Of course if you don't pay rent, you'd be in a better position. But if you can cut it down to $3k, I would do that with great relief, having experienced paying off $7k over 9 months. You've done great building a credit profile so far, don't compromise it by letting CC debt get too high.

EX 822
TU 834
EQ 820

SouthJamaica · ‎07-09-2016

@Anonymous wrote:
Hey there, FICO forum!

So about a week ago, I had three credit cards (Discover It, BoA Cash Rewards, and a Chase Freedom). My Chase Freedom’s limit had increased to $7,000 and I have 2 more months left of my 0% interest period. I ended up doing a bunch of spending along the way and I am carrying a balance of $6,200 on the card. It is the only card I am carrying a balance on.
So I was in the market for a balance transfer card to transfer that $6k balance over to and already being familiar with the fact that you can not balance transfer a Chase debt to another Chase product, I ended up applying for a Citi Diamond Preferred and received a petty laughable $3,800 limit (which is barely half of my balance). I became outraged and started looking at other cards.
It suddenly hit me that my own Discover card has a balance transfer promo of either 12 months / 0% interest with a 3% balance transfer fee or 18 months / 4.99% APR with $0 balance transfer fee…. So this is the route I am going to go when my Freedom’s promo is over and just transfer the balance to my Discover account.

I got a Chase Freedom Unlimited with the $150 sign up bonus and 15 months of no interest… So my plan is to transfer that $6k balance to the Discover account and just use the Freedom Unlimited for my everyday purchases.
In the meantime, my question is what should I do about the Citi Diamond Preferred card that I was approved for? I will NOT be using the card for anything at all. It is pretty much going to be nice and comfortable in my sock drawer. Is it smart to just cancel the card and then apply for it again after my Freedom Unlimited’s 15 month is over with next year? Would I still be eligible for the sign up promo? I am sure I would need to use that 0% for 21 months sometime in the future.. But not now.

My current background:
Discover It - $11,200 limit
BoA Cash Rewards - $2,700 limit
Chase Freedom - $7,000
Chase Freedom Unlimited - $4,000
Citi Diamond Preferred - $3,800

$22,000 income, 1 year 3 months AAoA, 26% utilization