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Balance Transfer and Score Effect

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Anonymous
Not applicable

Balance Transfer and Score Effect

Currently looking at a house for 170k tomorrow and it's 10k above my prequal amount.

 

Currently carrying balances on a few cards and if I transfer the balances, it would get me to the threshold to raise my prequal.

 

Discover offered me a 15mo 0% balance transfer upon hitting my one year with them. Overall I'm at 6% utilization. My overall wont change, but if I did the balance transfer to discover, it would put me at 50% utilization on the single card, while dropping 3 to 0%.

 

Can't find a score simulator to help with the consequences of doing so. Anyone know how bad it would hurt overall?

 

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3 REPLIES 3
RSX
Valued Contributor

Re: Balance Transfer and Score Effect

i would keep it under the 48% or so mark when you BT

i would think the hit would be much less than bumping over 50%

 

 

Dec 16/2019. EX. 721. EQ. 723. TU 746
Jan 25/2024 EX. 774 EQ. 751 TU 758
Inq. EX 2 EQ 3 TU 6 - - CC 2x24, 0x12
Amex BCP $35k - Apple GS $21k - BMW/Elan $19k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase Bonvoy Bountiful $10k - Chase United Club Infinite $26k - Citi CustomCash $3k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $31.5k - PayBoo - $15.6k - Penfed Gold - $19.3k - USB AltitudeGO -$19k- USBank Cash+ -$25k - PenFed LOC - $20k - USB LOC - $15k
Message 2 of 4
Dmessina666
Frequent Contributor

Re: Balance Transfer and Score Effect

Your mortgage lender should have a decent simulation tool. Most of them do. Better than MyFICO simulator I'm sure. Lol

Message 3 of 4
SouthJamaica
Mega Contributor

Re: Balance Transfer and Score Effect


@Anonymous wrote:

Currently looking at a house for 170k tomorrow and it's 10k above my prequal amount.

 

Currently carrying balances on a few cards and if I transfer the balances, it would get me to the threshold to raise my prequal.

 

Discover offered me a 15mo 0% balance transfer upon hitting my one year with them. Overall I'm at 6% utilization. My overall wont change, but if I did the balance transfer to discover, it would put me at 50% utilization on the single card, while dropping 3 to 0%.

 

Can't find a score simulator to help with the consequences of doing so. Anyone know how bad it would hurt overall?

 


50% appears to be a significant penalty-inducing threshold, so you'd be better off keeping it at 48% or so, so that you'd only be invoking the 30% threshold penalty.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

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