What is the better option

[Anonymous]

to have the lowest impact on my credit score, while taking advantage of a 0% APR 15 month credit card loan.

1)  Using an existing credit card, currently at 0% utilisation. Going for this option the utilisation of this card would jump to 80% or so, but no hard inquiries on my credit report.

2) Applying for a new credit card. Going for this option, assuming the credit limit on the new card would be similar to my other credit cards, the utilisation of this new card would be about 80% or so. There will be a hard inquiry on my credit report. Outstanding credit limit will be higher (adding the new credit card limit to the current total credit limit)

Background:

Fico score is above 800, have 4 other credit cards, 0 balance in all of them, monthly utilisation of all credit cards combined is below 5% of the credit limit and balances paid in full every billing cycle.

20k student loans. No other loans.

Thanks for your input

[gdale6]

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@Anonymous wrote:

to have the lowest impact on my credit score, while taking advantage of a 0% APR 15 month credit card loan.

1)  Using an existing credit card, currently at 0% utilisation. Going for this option the utilisation of this card would jump to 80% or so, but no hard inquiries on my credit report.

2) Applying for a new credit card. Going for this option, assuming the credit limit on the new card would be similar to my other credit cards, the utilisation of this new card would be about 80% or so. There will be a hard inquiry on my credit report. Outstanding credit limit will be higher (adding the new credit card limit to the current total credit limit)

Background:

Fico score is above 800, have 4 other credit cards, 0 balance in all of them, monthly utilisation of all credit cards combined is below 5% of the credit limit and balances paid in full every billing cycle.

20k student loans. No other loans.

Thanks for your input

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Welcome to My fico

Number 1. If you are in the 800s you are going to take a bigger hit for an inq and subsequent new card hit as well.

[NRB525]

I would use the current card. Known limit, no HP, same utilization effect on score. It's also good form to show the existing CCC you deserve a CLI. May or may not actually result, but it looks good.

[jamie123]

I think that now would be a good time for you to add another card. You know that you are going to take a hit by having high UTI on one card anyway. Why not take a slightly bigger hit now with the HP for a new card but in the end your CL will be much higher and you will have another card.

I see it as a perfect opportunity to add to your credit portfolio.

[RobertEG]

With five cards and a current score in the stratosphere, you do not, in my opinion, need another card.

I would use the existing card and its 0% APR offer.

A new card will enter into scoring of your average age of accounts with an age of zero.

[Anonymous]

Thanks for the input!!.

Another detail: there is another current open business credit card (sole porprietorship)  that happens to have a similar 12 month 0% APR balance transfer offer available.

Unsure about whether business credit cards are reported to the personal credit report, and how do business credit cards credit limit and utilisation affect personal credit score.

Question: Using the existing business credit card for a 12 month 0% APR loan would have a lesser effect (maybe even no effect) on my credit score compared to using any of the alternatives mentioned in the first post (which are all personal credit cards)?