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Balance Transfer and Score Effect

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Established Member

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
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Established 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%

 

 

July 31/2019. EX-712. EQ-704. TU-726
Dec 16/2019. EX. 721. EQ. 723. TU 746
Aug 8/2020 EX. 728 EQ. 714 TU 744
Oct 22/2020 EX. 725 EQ. 716 TU 742
Inq. EX 6 EQ 4 TU 2 - - CC 5x24, 1x12
Amex BCP $20k - Apple GS $17k - BMW/Elan $5k - Cap1 QS $16.7k - Chase Amazon $13.6k - Chase United Club Infinite $20k - Citi DC $14.5k - CreditUnion1 $9k - DiscoverIT $20.5k - HSBC Gold - $10.5k - Wells Sig Visa $12k
Message 2 of 4
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Regular 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
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Super Contributor

Re: Balance Transfer and Score Effect


@Proudfather328 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 653000 (575000 reporting)

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