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Lets say I have high util at ~85% with 7 credit accounts. 2 accounts are credit cards with high limits with 70% usage and 6 year history. The rest are low limit cards (mostly store cards) that are maxed out with 2-5 year history and 2 of these smaller cards each have a 30 day late payment. Would it be better balance transfer my low limit cards/store cards that are maxed out to the 2 main cards (maxing those out) and have 3-4 cards with low limits and $0 balances? Also do you think having a balance or not on a card w/ a 30 day late matters?
Thanks in advance.
@Tastycakes wrote:Lets say I have high util at ~85% with 7 credit accounts. 2 accounts are credit cards with high limits with 70% usage and 6 year history. The rest are low limit cards (mostly store cards) that are maxed out with 2-5 year history and 2 of these smaller cards each have a 30 day late payment. Would it be better balance transfer my low limit cards/store cards that are maxed out to the 2 main cards (maxing those out) and have 3-4 cards with low limits and $0 balances? Also do you think having a balance or not on a card w/ a 30 day late matters?
Thanks in advance.
It's really hard to predict if you would get a significant FICO gain from doing this, but unless you are trying to tweak your scores for a major purchase right now I would look at it from an interest rate perspective ~ what scenario would benefit you most in terms of paying the balances down ?
Im kinda in the same situation. I think it all depends on the total utilization ($5000 on 1 card is the same as $2500 on 2 in the creditors eyes), but I could be wrong. I just did a BT from high interest cards to a 0% card in order to save on interest. Some other users pointed out that some lenders may see this as being finacially "responsible" because I am saving on interest. Do it just to save $ ton interest and put it towards your debt.
@pizzadude wrote:
@Tastycakes wrote:Lets say I have high util at ~85% with 7 credit accounts. 2 accounts are credit cards with high limits with 70% usage and 6 year history. The rest are low limit cards (mostly store cards) that are maxed out with 2-5 year history and 2 of these smaller cards each have a 30 day late payment. Would it be better balance transfer my low limit cards/store cards that are maxed out to the 2 main cards (maxing those out) and have 3-4 cards with low limits and $0 balances? Also do you think having a balance or not on a card w/ a 30 day late matters?
Thanks in advance.
It's really hard to predict if you would get a significant FICO gain from doing this, but unless you are trying to tweak your scores for a major purchase right now I would look at it from an interest rate perspective ~ what scenario would benefit you most in terms of paying the balances down ?
+1
Not to rain on your parade or sound like your dad or anything but I would go with the APR paydown rule so if it helps you out to transfer stuff to a card that has a lower APR then I would do that and focus on paying down your debt first!
i dont think it will do much for your score. the best thing to do is pay them off in full and only use 5% or less of your available credit then your score will skyrocket thats the only way.
@Anonymous wrote:
@pizzadude wrote:
@Tastycakes wrote:Lets say I have high util at ~85% with 7 credit accounts. 2 accounts are credit cards with high limits with 70% usage and 6 year history. The rest are low limit cards (mostly store cards) that are maxed out with 2-5 year history and 2 of these smaller cards each have a 30 day late payment. Would it be better balance transfer my low limit cards/store cards that are maxed out to the 2 main cards (maxing those out) and have 3-4 cards with low limits and $0 balances? Also do you think having a balance or not on a card w/ a 30 day late matters?
Thanks in advance.
It's really hard to predict if you would get a significant FICO gain from doing this, but unless you are trying to tweak your scores for a major purchase right now I would look at it from an interest rate perspective ~ what scenario would benefit you most in terms of paying the balances down ?
+1
Not to rain on your parade or sound like your dad or anything but I would go with the APR paydown rule so if it helps you out to transfer stuff to a card that has a lower APR then I would do that and focus on paying down your debt first!
Well I'll be transferring to the main cards anyway. I have PNC which has that pnc.com/options thing where you can get a really low APR for a year if your having "trouble" making payments but you just can't touch your cards for that year, I did it last year and got offered 4% and 7% (obviously accepted the 4%). So I was going to transfer as much as possible onto the main cards then lock in that low APR for a year again.
I just have to answer the questions right because when you do the pnc.com/option thing they ask you a little questioner of why your having trouble which I assume if I answer "because I'm broke" they'll just lower my limits lol. Last year I chose the "changed jobs w/o a loss of pay" and got 4% APR which helped out a lot, wonder if I can use the change jobs option again .
Well I wish you all the best good luck!
yeah but if you just keep transfering mone from one card to another you will never get out of debt and the goal of restoring your credit especially with a credit card is to have a low balance. so pay it off asap and stop wasting your money.
@Tastycakes wrote:Lets say I have high util at ~85% with 7 credit accounts. 2 accounts are credit cards with high limits with 70% usage and 6 year history. The rest are low limit cards (mostly store cards) that are maxed out with 2-5 year history and 2 of these smaller cards each have a 30 day late payment. Would it be better balance transfer my low limit cards/store cards that are maxed out to the 2 main cards (maxing those out) and have 3-4 cards with low limits and $0 balances? Also do you think having a balance or not on a card w/ a 30 day late matters?
Thanks in advance.
How much are the Balance Transfer fees?
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