Is this balance transfer a good idea?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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rockyrock
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Re: Is this balance transfer a good idea?

Postby rockyrock » Wed Jan 06, 2016 8:55 am

jal540 wrote:
takeshi wrote:Is 12% the APR or the utilization?

The APR is 12%.

Do I calculate utilization as just the percentage of the credit limit I am currently using?
If so, right now I have an overall utilization of 49% and 50% on BT card. If I close the highest APR card, get a $5,000 credit limit on the new card, and pay off the balance (very doable), my overall utilization would go down to 32%.

If I do the above and also cancel the new card when it`s paid off, my overall utilization would be 39%. In two years (paying down the other high balance), my overall utilization could be below 20%. I understand less than 30% is considered good; the lower (but not zero), the better.

Thanks for the advice.


Look at your utilization from two angles. Both can change your score or likelihood of getting a new account or CLI.

1) For the individual card or creditor.
2) Overall based on total credit available across all accounts.

If the card doesn't have an AF I would keep it open for now, at least until you pay down your overall debt.

Good luck and remember: YMMV.
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jal540
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Re: Is this balance transfer a good idea?

Postby jal540 » Wed Jan 06, 2016 8:19 pm

rockyrock wrote:If the card doesn't have an AF I would keep it open for now, at least until you pay down your overall debt.


What is "AF"?

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Vattené
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Re: Is this balance transfer a good idea?

Postby Vattené » Thu Jan 07, 2016 11:21 am

jal540 wrote:
rockyrock wrote:If the card doesn't have an AF I would keep it open for now, at least until you pay down your overall debt.


What is "AF"?


AF = Annual Fee
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