Does a balance transfer have any adverse effect on a credit score?

[dovid2880]

Hi,

I am thinking of doing an $18,000 balance transfer from a CITI credit card into my business checking account.

The offer I received is 0% APR until 01/10/17. And putting a $18,000 charge on my credit would represent less than 30% of my total credit lines across my credit cards.

(The price of the "loan" would be 3%, so at $540 for $18,000 for 14 months is a good loan for me.)

So my question is, does doing a balance transfer, in of itself, affect my credit score in any way?

Thank you.

[mochjas]

Hi,

I am thinking of doing an $18,000 balance transfer from a CITI credit card into my business checking account.

The offer I received is 0% APR until 01/10/17. And putting a $18,000 charge on my credit would represent less than 30% of my total credit lines across my credit cards.

(The price of the "loan" would be 3%, so at $540 for $18,000 for 14 months is a good loan for me.)

So my question is, does doing a balance transfer, in of itself, affect my credit score in any way?

Thank you.

what is your credit limit on the credit card that you are taking the $ from?

[teenguy]

Yes I think it will affect your credit score atleast in 2 ways.

1) If you are using 75-80% plus your limit on that card, sometimes that decreases the score
2) Also if that 18k is a huge % of your total credit limit (total limit of all your credit cards) then it will decrease your score as well. It will add to the liability or credit used on your overall credit additional to what % you already have used right now...

[dovid2880]

The credit limit on that credit card is $19,500

Right now my credit utilization across my cards is at 0%, and I have over $65,000 in available credit across all of them, so holding a $18,000 balance would represent less than 30% total.

I got another offer from a different card for 4% and 12 months 0%apr. Am I better off spreading the $18,000 balance transfer across two different cards?

Thanks in advance for any insight.

[David Smith]

The credit limit on that credit card is $19,500

Right now my credit utilization across my cards is at 0%, and I have over $65,000 in available credit across all of them, so holding a $18,000 balance would represent less than 30% total.

I got another offer from a different card for 4% and 12 months 0%apr. Am I better off spreading the $18,000 balance transfer across two different cards?

Thanks in advance for any insight.

Having even one card over 80% for an extended period will have a large adverse affect on your credit.

[dovid2880]

I see.

How much should I safely keep it at?

[unclesam]

If you have a chase ink make a balance transfer from there it won't show on your credit report

[David Smith]

I see.

How much should I safely keep it at?

Under 30% per card, iinm. I am in no way a credit expert, so I can't provide you with a proper number. What you need is a business card (not a capital one card) to do a balance transfer from. The best options are likely the chase ink cash and the Amex simplycash.

[JTZ]

There are no set amounts that you should keep it at. It all depends on your credit file. I have had numerous cards maxed out in the past. My score took a big hit but came back stronger than ever.

[sharabob]

Having even one card over 80% for an extended period will have a large adverse affect on your credit.

What's the significance of 'an extended period'? Doesn't the high utilization only affect you as long as it's high? I don't think historical utilization is factored into score (or even appears on report)

[teenguy]

Ya it all depends on the credit file. But usually I have seen people taking 75-80% on 1 card and the score doesnt go much down.

You might want to wait out for a good offer. Like around 3% for 18 months.

Or you might wanna apply for a credit card like discover IT/citibank diamond etc which gives you 0% interest for 12-18 months.

[Cappy]

Hi,

I am thinking of doing an $18,000 balance transfer from a CITI credit card into my business checking account.

The offer I received is 0% APR until 01/10/17. And putting a $18,000 charge on my credit would represent less than 30% of my total credit lines across my credit cards.

(The price of the "loan" would be 3%, so at $540 for $18,000 for 14 months is a good loan for me.)

So my question is, does doing a balance transfer, in of itself, affect my credit score in any way?

Thank you.

Putting 18K on a 19.5K Line will be maxing out the card, hence maxing the card out. (90% or more is considered maxed out by Fico)

Did you try recently for a soft pull CLI on the card?(credit limit increase)

Also, do you have any other Citi cards? If so, you can reallocate some of those onto this card... It will be a hard hit, but might make sense based on your situation.

Let us know

[dovid2880]

Thanks for the advice.

What I'm gonna do at the end, being that I got multiple balance transfer offer from different cards, is to spread things out so that no individual card has more than 30% of its credit being utilized.

[mochjas]

Thanks for the advice.

What I'm gonna do at the end, being that I got multiple balance transfer offer from different cards, is to spread things out so that no individual card has more than 30% of its credit being utilized.

that is a much better idea

[AsherO]

Keep in mind you're personally still on the hook for the $18k even if your business doesn't pan out and can't afford to repay it.

[Cappy]

Thanks for the advice.

What I'm gonna do at the end, being that I got multiple balance transfer offer from different cards, is to spread things out so that no individual card has more than 30% of its credit being utilized.

Keep in mind, that your total overall Utilitzation will not change.

How many cards do you plan on spreading out on?

Also, how many current active cards do you currently have open?

[dovid2880]

I plan on spreading them out on 3 cards; 2 Citi and 1 Barclays.
I currently have 6 personal and 3 business cards open.

[Cappy]

I plan on spreading them out on 3 cards; 2 Citi and 1 Barclays.
I currently have 6 personal and 3 business cards open.

How many Citi cards do you have?

What are the limits on the other card/cards from Citi?

[dovid2880]

How many Citi cards do you have?

What are the limits on the other card/cards from Citi?

I made a mistake when I wrote before 'The credit limit on that credit card is $19,500', that amount was (roughly) between both Citi cards.

My current credit limits on my personal accounts:

Citi Double Cash - 10,500
Citi Bronze - 13,500
Chase BA - 19,000
Barclays AA - 9,000
Amex SPG - 12,500
Amex Platinum - Charge card

I also have 3 business credit cards from Amex.

My balance transfer offers:

Citi Bronze Balance Transfer Offer - 0.00%
Promo APR Until 10/01/2017

$5 or 3% of the amount of each transaction, whichever is greater, for this offer until 09/09/2016.

Citi Double Cash - 3% and 0% APR until 6/17 I think, I have to check, it was an offer in the mail and I don't have it in front of me.

Barclays Offer - 4% and 0% APR until 4/17 I think, I have to check.

My goal:

To get as much capital into my business account without it hurting my credit score.

[Cappy]

I made a mistake when I wrote before 'The credit limit on that credit card is $19,500', that amount was (roughly) between both Citi cards.

My current credit limits on my personal accounts:

Citi Double Cash - 10,500
Citi Bronze - 13,500
Chase BA - 19,000
Barclays AA - 9,000
Amex SPG - 12,500
Amex Platinum - Charge card

I also have 3 business credit cards from Amex.

My balance transfer offers:

Citi Bronze Balance Transfer Offer - 0.00%
Promo APR Until 10/01/2017

$5 or 3% of the amount of each transaction, whichever is greater, for this offer until 09/09/2016.

Citi Double Cash - 3% and 0% APR until 6/17 I think, I have to check, it was an offer in the mail and I don't have it in front of me.

Barclays Offer - 4% and 0% APR until 4/17 I think, I have to check.

My goal:

To get as much capital into my business account without it hurting my credit score.

Citi Double Cash - 10,500 - 29% = 3045
Citi Bronze - 13,500 - 29% = 3915
Barclays AA - 9,000 - 29% = 2610

Total: $9,570

It would be advisable to do under 30% which  is why I calculated 29%

You are still short quite a bit.

My advice to you is to try for a credit limit increase with a soft pull. Go into citi and request an increase, it will say whether or not they will pull a report.

Let us know if that works.. Your current idea will not. 


Another thing is, I'm not excited with having half of your card with balances, as Fico does look at the amount of cards as well with balances.

Also, Do you have a check from Barclays? I dont think direct deposit is available with BT's online. With Citi, you can do it.