I usually see people respond with scenario B because utilization seems to be such a scary thing for most people. I do not get it and it makes me cringe "why!"
Assuming you go with A, you are technically getting a bump for AZEO right? Is the penalty for utilization on ONE card greater than the bump for AZEO? You do not say what your score is, but would the penalty for utilization on ONE card be like going from a 800 to 780? I doubt it, but still a favorable score. Lastly, after 6 months of payments you will be down to about 30% util anyways.
I would rather save the $434 difference in interest and fees for the year and put it to better use. My wife would appreciate me with the $434 spent on her more than any bank would appreciate me. 
| A | rate | mo | mo pmt | cumipmt |
| 11000 | 0 | 12 | ($917) | $0 |
| fee | ($330) | |||
| B | rate | mo | mo pmt | cumipmt |
| 2070 | 21 | 12 | ($193) | ($243) |
| 3600 | 18 | 12 | ($330) | ($361) |
| 5330 | 0 | 12 | ($444) | $0 |
| fee | ($160) |
Transfer the balances. 68% utilization is fine as a starting point.
As far as scoring goes, your individual card utilization would remain the same (under 68.9%), and your overall utilization is going to remain the same. One less card with a positive balance may or may not give you a few points on some scores.
By the way, 68% utilization is nowhere near AZEO. AZEO requires a tiny balance.
@whocares wrote:I've got a couple credit cards that have the following utilization and newly approved card with a 0% offer:
Card 1 - $4k/$6k = 67% utilization | 21% APR = $77/mo interest
Card 2 - $7k/$12k = 58% utilization | 18% APR = $117/mo interestNew Card 3 - $0/$16k with 0% interest for 18 mo w/ 3% balance transfer fee
My question is which option is better from a FICO score & financial perspective?
A) Transfer all balances ($11k) to Card 3 and incur a $330 balance transfer fee while saving on monthly interest ($194/mo) over the long term. This would put the utlization for Card 3 at 68% ($11k/$16k)Card 1 - $0k/$6k = 0% utilization | 21% APR
Card 2 - $0k/$12k = 0% utilization | 18% APRNew Card 3 - $11/$16k = 68% utilization | 0% APR for 18 mo | Balance transfer fee $330 (3%)
B) Transfer PART of the balances on Card 1/2 to get them under 30% each to Card 3.
Card 1 - $2070/$6k = 30% utilization | 21% APR = $37/mo interest | Transferred $1930 to Card 3
Card 2 - $3600k/$12k = 30% utilization | 18% APR) = $48/mo interest | Transferred $3400 to Card 3New Card 3 - $5330/$16k = 33% utilization | 0% APR for 18 mo | Balance transfer fee $160 (3%)
I plan on paying at least $1k/mo until cards are paid-in-full (approx 1 year). Is it better from a FICO scoring perspective to "spread" the balances across multiple cards to try and keep the utilization on each under 30% or is it better to have a high utilization/balance on 1 card and have a $0 balance on the other 2?
Looking for feedback/experience. Thanks!
1. From a FICO 8 perspective I think your scores would be best served by having each of the 3 cards report at 28% or less.
2. From a mortgage score perspective I think your scores would best be served by transferring both balances in their entirety.
3. From an economic perspective... I hate paying balance transfer fees. Just sayin'.
