@Anonymous wrote:My overall utilization is currently 2% but would go to 6%.
@Aahz wrote:
@Anonymous wrote:I was wondering if anyone could hazard a guess as to how much of an effect (number of points) a balance transfer would have on my scores. I have an installment loan with a balance of $4,300.00 (which I want to put on my Discover Card which has a $12,000.00 credit limit) in order to receive the title for the collateral so I can sell it. I have a balance transfer offer on the card 0% transfer fee and 4.9% APR for eighteen months. I plan on financing a car soon and may still have over 30% utilization on the card when I do. I am hoping some of you here can give me an idea of the effects this will have on my scores. You can see my data points in my signiture also I have one closed insatllment account and three closed credit cards reporting, my Aaoa is 4 years the oldest is nine years and I have no negatives.
Assuming your overall utilization remains below 10% I would expect a 5-10 point change in FICO 08.
On my file that'd be 0 point change when we're talking that balance on that CL, but everything is magnified for pretty files so Aahz's suggestion is a reasonable and conservative estimate. Hell I lose 7 points for maxxing out a card and I've never seen a breakpoint below 60% and I'm not sure on 60-90 frankly. Maybe will just open up the $200 secured discover card and isolate that as I see too many conflicting datapoints.
Never thought I'd regret getting a CLI and I guess I could re-allocate the line but Chase has done 2 auto CLI's in the last year for my Freedom which took my typical test card (when there was a useful quarter) away.
I also wouldn't think there would be too crazy of a change in score, if I understand everything correctly.
@Anonymous wrote:I was wondering if anyone could hazard a guess as to how much of an effect (number of points) a balance transfer would have on my scores. I have an installment loan with a balance of $4,300.00 (which I want to put on my Discover Card which has a $12,000.00 credit limit) in order to receive the title for the collateral so I can sell it. I have a balance transfer offer on the card 0% transfer fee and 4.9% APR for eighteen months. I plan on financing a car soon and may still have over 30% utilization on the card when I do. I am hoping some of you here can give me an idea of the effects this will have on my scores. You can see my data points in my signiture also I have one closed insatllment account and three closed credit cards reporting, my Aaoa is 4 years the oldest is nine years and I have no negatives.
You will lose plenty of points in the short term.
1. You will lose points when your installment loan is paid off.
2. You will lose points when you increase the utilization on the Discover Card.
So if you go to finance a car soon, you will have a problem.
Sorry to give you the bad news, but FICO ridiculously penalizes you for paying off a loan.
No one knows how many points, but since you asked for a "guess" ..... assuming you presently have a $4100 balance on Discover, my guess is you will lose about 60 points total by paying off the car loan with the Discover balance transfer. You can soften the blow of the utilization problem by spreading that debt to cards other than the Discover card. You're already in too deep with the Discover card, at more than 33 percent according to my calculations.
Since all of these factors are utilization factors, and utilization has no memory, you will get back your points in time, but at the critical juncture of applying for the auto loan you will be down. So the money you save with the 0% balance transfer may be eclipsed by the money you lose from a higher auto loan rate.
@Anonymous wrote:Thank you all for your responses I appreciate your help. SouthJamaica I currently have no balance on the Discover card so if I do the transfer it would put it at 36% and I will also open a secured share loan with Penfed before the other loan reports as paid. Would this minimize the point drop you suggested?
@SouthJamaica wrote:
@Anonymous wrote:I was wondering if anyone could hazard a guess as to how much of an effect (number of points) a balance transfer would have on my scores. I have an installment loan with a balance of $4,300.00 (which I want to put on my Discover Card which has a $12,000.00 credit limit) in order to receive the title for the collateral so I can sell it. I have a balance transfer offer on the card 0% transfer fee and 4.9% APR for eighteen months. I plan on financing a car soon and may still have over 30% utilization on the card when I do. I am hoping some of you here can give me an idea of the effects this will have on my scores. You can see my data points in my signiture also I have one closed insatllment account and three closed credit cards reporting, my Aaoa is 4 years the oldest is nine years and I have no negatives.
You will lose plenty of points in the short term.
1. You will lose points when your installment loan is paid off.
2. You will lose points when you increase the utilization on the Discover Card.
So if you go to finance a car soon, you will have a problem.
Sorry to give you the bad news, but FICO ridiculously penalizes you for paying off a loan.
No one knows how many points, but since you asked for a "guess" ..... assuming you presently have a $4100 balance on Discover, my guess is you will lose about 60 points total by paying off the car loan with the Discover balance transfer. You can soften the blow of the utilization problem by spreading that debt to cards other than the Discover card. You're already in too deep with the Discover card, at more than 33 percent according to my calculations.
Since all of these factors are utilization factors, and utilization has no memory, you will get back your points in time, but at the critical juncture of applying for the auto loan you will be down. So the money you save with the 0% balance transfer may be eclipsed by the money you lose from a higher auto loan rate.
Yes this would reduce the point loss, assuming you get the share secured loan down to 9% or so and assuming Penfed reports the same way Alliant does.
But I would advise not going over 29% on the Discover.