What should I do next? (0%/Balance Transfer Cards)

[JDnyc84]

Hey there! So I've recently paid down some debt, still have some left, and am trying to learn the right next move. Would love to hear how you'd approach my scenario.

I've got about $24k left to pay down, expect to do so over the course of the next 9-18 months.

Things to keep in mind:

1. Auto lease is up in December. Don't want to do anything to jeapordize my chances of qualifying for the best terms on a new lease.

2. Lower interest charges as much as possible by consolidating via new 0% cards or installment loans; open to other ideas.

3. Improving FICO/Vantage/whatever scores.

I'm working with:

1. Wife's TransUnion Vantage is 751. 100% on time, oldest 9 yrs, 20% utilization (no individuals over 29%), 3 inquiries, 3 new accts, $13.5k available across Cap1 Platinum, Citi AAdvantage, and Synchrony Amazon. Can only do new credit cards on her side; installment/auto has to be on mine.

2. My FICO 8s are 675EQ/698TU/704EX. I expect the EQ/TU to go up into the low 700s in the next few days as there is a reporting lag. I don't know what Chase auto finance uses (getting a Mazda or Subaru; prequalified), but auto scores range from 635-669 so I'm worried about that. 1 acct 30/60+ days late from 6 yrs ago. There were multiple lates here but it is my only baddie and all aged 6+ yrs. AAoA 3 yr 10 mo, AoOA 9 yr 4 mo. 49% utilization (one 0% intro >90%, one deferred finance >30, one standard >30). 0 inquiries, most recent opened 6 mos ago. 

3. My accts:

• Discover It - 0% thru October, 8.7k bal/9k limit (Plan to bring this below 89% util next week, pay off in Oct)
• Barclay Rewards - 2.2k/2.6k
• Cap1 Platinum - 2k/7k
• Mercury - 1.9k/6.5k
• Comenity Wayfair - 1.9k/2.7k (Deferred finance; not sure what to do since Wayfair closing all cards next month!)
• Cap1 Quicksilver - 1.5k/5k
• Chase Freedom - 0/$600
• Barclays Apple - 0/1k
• Synchrony HSN - 0/3.5k
• $2k LendingClub Installment, 4 pmts left

I'm thinking wife applies for Citi 0% or Discover 0% (assuming they accept to transfer some of my balances), and I either try for some other 0% or garden until new auto lease. Thoughts?

[K-in-Boston]

Congrats on your progress.  I would garden on your own profile and in addition to paying off the Discover, get that Barclay card paid down as well prior to a new lease.  Both of those are likely hurting your scores pretty badly.

Can you get wife's FICO 8 scores?  751 Vantage could just as easily be 600 or 850 FICO 8s, which would be the most common scores.  How recent and which bureaus are her inquiries on?  How new are the three new accounts?  Are they revolving products or other credit types? 

Neither Discover nor Citi are exactly known for huge starting lines, so while an approval might happen it may not be enough to do the balance transfers you want, or leave any breathing room without maxing it.  No problem moving your balances to her cards; a few credit unions won't allow it (edit: unless you are an authorized user).  Are either of you eligible for NFCU membership?

Once Wayfair closes, the terms will stay the same and any existing promos will be honored (along with any retroactive interest if the balance is not paid before expiration); you just won't be able to make new purchases on it.

[CreditCuriosity]

You arent in to bad of position to be honest as you said you can pay off discover before BT is gone that knocks off close to 9k of the 20kish balance then part of that is car at 4 payments lefts so maybe 10kish in CC debts from quick looking at your post.  Not sure of your income, etc but if can pay off discover and avoid charging more aka putting self in same situation you have things fairly under control.  None of your CL's are really big so I dont forsee in this economic condition getting a big limit on another CL unless a CU card possible and that might be your best bet.  Get your real fico scores vs. vantage and we can all help you out a bit more whether it is debt consolidations\ loan or another new CC to role the 10kish balance to to pay least amount of interest

[JDnyc84]

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@K-in-Boston wrote:

Congrats on your progress.  I would garden on your own profile and in addition to paying off the Discover, get that Barclay card paid down as well prior to a new lease.  Both of those are likely hurting your scores pretty badly.

Can you get wife's FICO 8 scores?  751 Vantage could just as easily be 600 or 850 FICO 8s, which would be the most common scores.  How recent and which bureaus are her inquiries on?  How new are the three new accounts?  Are they revolving products or other credit types? 

Neither Discover nor Citi are exactly known for huge starting lines, so while an approval might happen it may not be enough to do the balance transfers you want, or leave any breathing room without maxing it.  No problem moving your balances to her cards; a few credit unions won't allow it (edit: unless you are an authorized user).  Are either of you eligible for NFCU membership?

Once Wayfair closes, the terms will stay the same and any existing promos will be honored (along with any retroactive interest if the balance is not paid before expiration); you just won't be able to make new purchases on it.

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Thank you!! I just tried to upgrade to a myFICO Family Plan but apparently that's going to have to wait until Monday, so I'll get her FICO 8s then. Not sure of the bureaus, but we've been on a 6-month inquiry timeline, so I'm guessing 6, 12, and 18 months for both the inquiries and account ages. Will confirm all of that. They are Synchrony Amazon, Citi AAdvantage, and Cap1 Platinum (newest to oldest). Her age is showing longer because she's an authorized user on my Chase Freedom.

I don't mind maxing for the transfers, as we are probably done with new credit for a long while after the consolidation and auto lease, unless maxing would create a long-term issue. I think I'm eligible for NFCU; my grandfather served in the Army.

On Wayfair, am I right to think I can/should milk the deferred financing? My concern was utilization being affected.

[JDnyc84]

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@CreditCuriosity wrote:

You arent in to bad of position to be honest as you said you can pay off discover before BT is gone that knocks off close to 9k of the 20kish balance then part of that is car at 4 payments lefts so maybe 10kish in CC debts from quick looking at your post.  Not sure of your income, etc but if can pay off discover and avoid charging more aka putting self in same situation you have things fairly under control.  None of your CL's are really big so I dont forsee in this economic condition getting a big limit on another CL unless a CU card possible and that might be your best bet.  Get your real fico scores vs. vantage and we can all help you out a bit more whether it is debt consolidations\ loan or another new CC to role the 10kish balance to to pay least amount of interest

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Thanks! Income is 120ish and covers expenses without charging. Yes, after Discover we are looking at 12k max to consolidate/pay least amount of interest. But knocking off Discover will leave me without much of a cushion, and though my job may weather the storm (God willing), I'd like to try to roll as much as I can another 12-18 months if it's feasible with our profiles and the current lending environment.

I'll have FICOs Monday or Tuesday.

[NRB525]

Pay off the Discover, and see if you get BT offers on that Discover card.  Moving some of the smaller balances to Discover may help with high interest costs. 

But don't be intimidated by having to pay some interest. Paying the highest APR cards will get more progress on the entire list.  

[JDnyc84]

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@K-in-Boston wrote:

Congrats on your progress.  I would garden on your own profile and in addition to paying off the Discover, get that Barclay card paid down as well prior to a new lease.  Both of those are likely hurting your scores pretty badly.

Can you get wife's FICO 8 scores?  751 Vantage could just as easily be 600 or 850 FICO 8s, which would be the most common scores.  How recent and which bureaus are her inquiries on?  How new are the three new accounts?  Are they revolving products or other credit types? 

Neither Discover nor Citi are exactly known for huge starting lines, so while an approval might happen it may not be enough to do the balance transfers you want, or leave any breathing room without maxing it.  No problem moving your balances to her cards; a few credit unions won't allow it (edit: unless you are an authorized user).  Are either of you eligible for NFCU membership?

Once Wayfair closes, the terms will stay the same and any existing promos will be honored (along with any retroactive interest if the balance is not paid before expiration); you just won't be able to make new purchases on it.

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I was able to grab her Experian FICO 8, which is 727. Ironically, they have a feature that suggests the top card matches for her are Discover it and Citi Double Cash, which were the cards we were considering for the balance transfers. All of the data reporting is consistent with the Vantage data I provided earlier.