Transfer Credit Card Balance to Another Card After APR Hike
Guest: hdporter
Credit Expert (100+ Posts)
Post subject: Transfer Credit Card Balance to Another Card After APR Hike
Posted: Sun Jun 11, 2006 11:46 pm
Quote:
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?
Well, given that it's a done deal and that you're looking to pay the balance off before the 0% rate expires, I'd look to make level payments that would amortize the balance over that period -- meaning that you would be making payments signficantly higher than the minimums due. After 3 mo. I'd call, express concern about your high utilization, and request a limit increase. If they decline, ask when you'd be eligible.
Other than that, assuming that your credit score is strong, I wouldn't sweat it. However, it's my guess that high utilization on an account can depress your score by as much as 20 pts. If you score is currently 680, that potentially could depress your score to the point where other creditors may become concerned. If your score is 700+, I wouldn't sweat it at all.
If you have reason to fear this risk, consider looking around for another new card with an attractive promo rate to which you might off load part of this balance.
As a rule, I try not to tap more than 40% of any new card's limit. However, I can see where it would be sufficiently attractive to push higher.
- Harry[/quote]
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sun Jun 11, 2006 11:54 pm
I have done many BT's over 90%
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Brammy
Posted: Mon Jun 12, 2006 6:44 am
[quote="hdporter"]Quote:
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?
Well, given that it's a done deal and that you're looking to pay the balance off before the 0% rate expires, I'd look to make level payments that would amortize the balance over that period -- meaning that you would be making payments signficantly higher than the minimums due. After 3 mo. I'd call, express concern about your high utilization, and request a limit increase. If they decline, ask when you'd be eligible.
Other than that, assuming that your credit score is strong, I wouldn't sweat it. However, it's my guess that high utilization on an account can depress your score by as much as 20 pts. If you score is currently 680, that potentially could depress your score to the point where other creditors may become concerned. If your score is 700+, I wouldn't sweat it at all.
If you have reason to fear this risk, consider looking around for another new card with an attractive promo rate to which you might off load part of this balance.
As a rule, I try not to tap more than 40% of any new card's limit. However, I can see where it would be sufficiently attractive to push higher.
- Harry[/quote][/quote]
I have the payments set up in MONEY to pay the card off by June as the BT offer expires in July. I guess I'd better give them a call about utilization since all of the use is on the BT offer.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Brammy
Posted: Mon Jun 12, 2006 7:30 am
I had not made the last BT to take me up to 80%. I was going to use one of their BT checks but after reading here decided to call and do it over the phone so that I could have my questions answered and recorded since they always record requests for BTs. I was told by my rep that as long as I did not go over my limit, made payments on time, that the rate would not change because of utilization on the one card. I was also told that THEY encourage cardholders to take FULL advantage of the BT offer while it lasts.
In other words, they DO want you to transfer as much of your debt as possible to their card. Now to keep it at 25% across the board. That's going to be the hard part
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Credit Expert (100+ Posts)
Post subject: Transfer Credit Card Balance to Another Card After APR Hike
Posted: Sun Jun 11, 2006 11:46 pm
Quote:
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?
Well, given that it's a done deal and that you're looking to pay the balance off before the 0% rate expires, I'd look to make level payments that would amortize the balance over that period -- meaning that you would be making payments signficantly higher than the minimums due. After 3 mo. I'd call, express concern about your high utilization, and request a limit increase. If they decline, ask when you'd be eligible.
Other than that, assuming that your credit score is strong, I wouldn't sweat it. However, it's my guess that high utilization on an account can depress your score by as much as 20 pts. If you score is currently 680, that potentially could depress your score to the point where other creditors may become concerned. If your score is 700+, I wouldn't sweat it at all.
If you have reason to fear this risk, consider looking around for another new card with an attractive promo rate to which you might off load part of this balance.
As a rule, I try not to tap more than 40% of any new card's limit. However, I can see where it would be sufficiently attractive to push higher.
- Harry[/quote]
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sun Jun 11, 2006 11:54 pm
I have done many BT's over 90%
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Brammy
Posted: Mon Jun 12, 2006 6:44 am
[quote="hdporter"]Quote:
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?
Well, given that it's a done deal and that you're looking to pay the balance off before the 0% rate expires, I'd look to make level payments that would amortize the balance over that period -- meaning that you would be making payments signficantly higher than the minimums due. After 3 mo. I'd call, express concern about your high utilization, and request a limit increase. If they decline, ask when you'd be eligible.
Other than that, assuming that your credit score is strong, I wouldn't sweat it. However, it's my guess that high utilization on an account can depress your score by as much as 20 pts. If you score is currently 680, that potentially could depress your score to the point where other creditors may become concerned. If your score is 700+, I wouldn't sweat it at all.
If you have reason to fear this risk, consider looking around for another new card with an attractive promo rate to which you might off load part of this balance.
As a rule, I try not to tap more than 40% of any new card's limit. However, I can see where it would be sufficiently attractive to push higher.
- Harry[/quote][/quote]
I have the payments set up in MONEY to pay the card off by June as the BT offer expires in July. I guess I'd better give them a call about utilization since all of the use is on the BT offer.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Brammy
Posted: Mon Jun 12, 2006 7:30 am
I had not made the last BT to take me up to 80%. I was going to use one of their BT checks but after reading here decided to call and do it over the phone so that I could have my questions answered and recorded since they always record requests for BTs. I was told by my rep that as long as I did not go over my limit, made payments on time, that the rate would not change because of utilization on the one card. I was also told that THEY encourage cardholders to take FULL advantage of the BT offer while it lasts.
In other words, they DO want you to transfer as much of your debt as possible to their card. Now to keep it at 25% across the board. That's going to be the hard part
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 2:43 PM
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