After all my months of reading on CB , I'm getting other people converted to using credit smartly. This guy is my first *project* He doesn't care about FICO, credit per say, so long as he has it. He'd rather just pay cash for everything (blah says I!)... he actually cares enough FINALLY to listen to the posts I read him off CB, and says to "thank all those fine gents & ladies" for the information THEN about an hour later he says "thank YOU" too , HA! my eyes are the ones bleeding, after all, it's about time!

I finally got him convinced BT's to 0% intro/lower APR cards are what he needs to pay down his debts. I pulled his reports/FICOs (details here: http://creditboards.com/forums/index.php?s...=236294&hl= for the curious) with him & applied for Discover Cashback Bonus VISA, WAMU Platinum, and Chase Freedom VISA.

The results are in: approved for all 3 (he was happy with that, mostly)

Chase:
$400 CL (blah)
0% APR on BT 3 billing cycles then 14.99+ prime rate
BT Fees: 3% of Transaction, Min Fee $5 - Max Fee $75

WAMU Platinum:
$2000 CL
0% APR on BT 3 billing cycles then 8.74 + prime rate (not less than 16.99%)
BT Fees: 3% of the amount of each transfer Min Fee: $5 - Max Fee: $75

Discover:
$3000 CL
0% APR on BT through 1/2008
BT Fees: 3% of the Transaction, Min Fee: $ - Max Fee $50



I really don't see a purpose to the Chase as a BT for him with such a sucky limit for him, though I encouraged him that it's still a foot in the door (though he's already got AMEX so he thinks *so what*) ... and then I explained about possible CLIs in the future, so he's *ok* w/ the idea of Chase "only" giving him $400.

The reason for the BT card attempts is he's currently got:

approx $1500 bal on a $2000 CL paying 28.15% APR on a Cap1 card
and
approx $1000 bal on a $2000 CL paying 32.24% APR BofA card

He received a rate-jack due to a late payment a LONG while back 12/05 it seems.
I JUST found out a couple weeks back about his APRs and couldn't stand it, so it's here now on CB.

So NOW, he's got $5000 CL between the WAMU and the Discover...
and he's got about $2500 in balances he's paying way to high of APRs for.

So I really need suggestions on how to divide the BTs between the 2 cards (or maybe even what? $100 or $200 to the Chase? seems silly maybe , but i'm not sure.)

He's not into caring about his FICO scores (*gasp* says I!) though he's happy about his being called "good scores" by me. So the general thoughts maybe about 30% utilization/50% utilization don't put any fear into him.

The Discover card w/ the $3k limit says "Cash Advance Limit $1500" >>> is that a limit for BT too? or just like a Cash Advance from an ATM?

The WAMU card w/ the $2k limit says "cash transaction limit $500" >>> is that a limit for BT too? or just like a Cash Advance from an ATM?

I've got him convinced to put everything *extra* into his card debts until he gets them paid off, but I'd guestimate only about $400 each month towards them (he says he pays between $150 - $200 each month for each card)

I've never done any BTs before & he's clueless about this, too.

Any advice is greatly appreciated & Thank you in advance

If it were ME, I would BT the entire $2500 to Discover because you are then paying the lowest fee. If he pays $400 a month on the card, in 3 months it will be below 50%. Sometimes the best financial decision isn't the best thing for FICO (as GEORGE would say "FICO doesn't pay my bills). Since he is not worried about scores (and needn't be unless he is planning on applying for something) this is the most cost effective route. HOWEVER, before submitting the BT, he should call Discover and ask for a CLI "because he'd like to do a BT and doesn't want to be maxed out".
If there is a need for scores to be optimum in the short term, another strategy would have to be used...but it will be more costly. My 2¢

Thank you for your time reading all that, I wasn't sure how much to type in to be enough info. Your idea sounds so simple, so simple, it just may work ! LOL ! I'll wait for his return & have to read that to him Thanks bunches!!!

Put all of it on the Discover card. Pay off Discover in 11 months (they 2 cycle bill).

Even if he doesn't care about FICO, IME anyway, BT'ing almost to my CL has never had a huge impact on my scores (less than 10 pts).

Has he asked them to lower their rates? If they had a low promotional offer, then he could lower the rates without the BT fee.

I've been seeing that "2 cycle bill" more & more often as I'm reading the boards & "Terms" on CC pages... does it make sense to pay twice a month when there's "2 cycle billing"? sorry if that's a dumb question... I've been paying my mortgage twice a month (1/2 payments) to help reduce the total interest paid, but with a 0% APR on a card, I'm not sure of the benefits of paying twice a month - just wondering if it's appropriate to do with a 2 cycle billing CC?

So far as I know, he's never called them to ask them anything, I'll ask him tonight though & see what he says... and if no, then write up a little 'script' for him so he has a clue of what to say on the phone to a CSR. He did say that he didn't activate the new card/s (old card/s expired).

It has nothing to do with the number of times you make a payment during a cycle. 2 cycle billing means that if you do not PIF on a card, that the interest will go back to the first day of the previous cycle and be based on average daily balance for 2 months. CC's used to only charge interest on the current statement if you carried balance.

Ah-Ha! Thank you!!

SCRIPT
credit card rep: How may I help you?
slow_but_eventual_understudy: I would like a lower interest rate.
credit card rep: Okay, let me see what I can do... [a minute later] Well, I can give you 17.99%...
slow_but_eventual_understudy: Well, that's not good enough. If you don't give me a competitive rate, then I'm going to transfer my balance to a 0% till 2008 card that I just receive & stop using your card.
credit card rep: Well, let me see what I can do... [a minute later] Well, I can put you in a promotional offer for 0% till 2008.

If they don't offer something worthwhile, say no thanks & transfer the balance.

oooh Thanks!!! I'm printing that out,, well this whole thread out now & will have him call tonight! I did confirm that he hasn't called them except when he activated the cards.

I would die if Cap1 gave anyone that. lol.

he's calling... on the 3rd phone call now

no CLI on Discover for util. purposes (big surprise)
chase was easy-peasy but after Discover said no to activation CLI he didn't try w/ Chase.
Wamu is relentless on upselling , he said: "Good Lord, 5 minutes trying to upsell... with an Indian accent."

now on to the reduced rate calls ...