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BALANCE TRANSFER MAX OUT CARD OR APPLY NEW CARD ?

smode
Established Contributor

BALANCE TRANSFER MAX OUT CARD OR APPLY NEW CARD ?

Anotyher question is it better to max a card transfering a balance or better off having another hard inquiry applying a new card with 0% APR to transfer a balance ?

i have $2,000 balance on my paypal extras 24% APR and my Discover IT offering me 12 months 0% APR but only have $2,500 limit and will not require a hard pull. Unless i go apply new card and probably get 15-18 months APR and depending on the limit could transfer both balances totalling $4,000 i owe on Discover IT and Paypal Extras instead transfering $2,000 from Paypal Extras only, 

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takeshi74
Senior Contributor

Re: BALANCE TRANSFER MAX OUT CARD OR APPLY NEW CARD ?

Maxing a card is never a good idea.  Keep in mind that utilization is 35% of your score

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

and the general recommendation is to never exceed 30% utilization (though ideal is much lower).

 

If it's a short term (i.e. you'll pay it off in a couple of months) max out it may be no big deal but if utilization is going to be very high for a prolonged period of time you run the risk of adverse action.

 


@smode wrote:

better off having another hard inquiry applying a new card 


It's not just the inquiry but the impact to your AAoA that matters as well.

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pizzadude
Super Contributor

Re: BALANCE TRANSFER MAX OUT CARD OR APPLY NEW CARD ?

 

 

Locked to direct others to discussion on similar topic:

 

http://ficoforums.myfico.com/t5/Credit-Cards/Apply-for-new-card-or-credit-limit-increase/m-p/3401417...

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
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