Credit Card APR Hike After Balance Transfer

Guest: Brammy
Post subject: Credit Card APR Hike After Balance Transfer
Posted: Sun Jun 11, 2006 8:17 am

I just got a new intro rate of 0% on Bts for a year. Of course I transferred all my outstanding balances to the card. My question is this: Many banks rate jack you for high utilization, does anyone think this will come into play with 80% utilization on this card but 0% on all others with a 25% utilization across the board?

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Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sun Jun 11, 2006 8:34 am

Those bank actions are infrequent as long as you stick to the terms of your transfer. Prudent people recommend staying below 50% utilization on every card, not just overall, but others say that isn't necessary. Without knowing what banks you're talking about and having some notion of your card limits and your credit scores, I can't say much more than that. But odds are you'll be OK, especially if you keep your scores above 700 by the standard models...
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"

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Guest: ALex
Posted: Sun Jun 11, 2006 9:41 am

[quote="Brammy"]I just got a new intro rate of 0% on Bts for a year. Of course I transferred all my outstanding balances to the card. My question is this: Many banks rate jack you for high utilization, does anyone think this will come into play with 80% utilization on this card but 0% on all others with a 25% utilization across the board?[/quote]


You will be fine... Just make sure that your payment is never late or go over the limit..Hopefully, when your BT promo expires you will be able to transfer the balance to another Company.. The goal of the Credit Card Company when a transfer is done with a Customer is to get as much of their debt that it owed to them, so you could be 99% utilized on your present 0%promo rate and you will be fine..

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Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sun Jun 11, 2006 10:03 am

Quote:
you could be 99% utilized on your present 0%promo rate and you will be fine..
Nice theory. Hope it works for you. Others have posted they get the dreaded "financial review" call if they go over 90%--some if they go over 80%.

I guess no one really knows for sure. My current thinking is to try to leave a lot on the table and TRY to keep utilization below 50%, to encourage better offers and higher limits in the future. I'll admit I don't always manage to control myself that much, especially on cards with over $40,000 in limits and a 0% offer. (That's a LOT of money to leave on the table!) But even then I keep it below 90%...
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"

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