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Balance transfering off closed credit card

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Lately, I have been trying to figure out how to balance transfer down the closed NFCU card so I can get rid of the closed card hurting my utilization. In older threads I got great advice on trying to BT it down to reduce the util. I recently paid off most of my cards to get them down to low utilization in hopes of being able to apply for a PENFED card with a introductory BT rate. I did this after PENFED denied me in April due too utilization but keep in mind that was before I paid down a maxed out Star Card, Crap1, and Wal-Mart card. I was hoping to see a nice score bump once these cards update in the next 3-14 days and then I would look at applying for a card just to BT most of the balance. When applying for a BT card is it wise to ask for the full balance so they see that you are trying to remove an old debt or ask for something realistic? IE should I ask to pay of $14k or just $5k to NFCU if I apply for a BT card?

 

My divorce is still going on and I'm up to $12k in attorney fees and no end in sight, hence the reason why I paid off the cards I might need to use for more legal fees and maintenance I will have to provide the soon to be ex (COBRA for 6 months at $5000). I was just able to get a $10k NFCU Signature VISA but obviously you cant BT within the same institution, but it will help reduce my utilization. I did apply for a career starter loan at 2.99% through USAA three weeks ago and was told I was denied due to too many inquiries in the last 24 months, but the official letter in the mail said that and too many installment loans with a balance over $2499 was the determining factor. I have listed my profile below for some insight:

 

Revolving:

Crap1: $800 Limit / $1 Bal Opened 3-2011 ( always refuse to increase CL regardless of how much i spend a month and pay off)

USAA Signature: $8000 Limit / $1000 Bal Opened 6-2016

Amazon Store Card: $1700 Limit / $2 Bal Opened 3-2012

Wal-Mart Store Card: $2100 Limit / $1 Balance Opened 3-2012

Military Star Card: $3800 Limit / $0 Balance Opened 6-2012 was late 30 days in 2014, won't goodwill

Navy Federal Signature: $10K Limit / $0 Bal Opened 6-2017

 

Bad Revolving:

Navy Federal Nrewards $21k Limit / $14k Bal Opened 1-2012 Closed due to relationship issues 11-2014 Never Late

 

Installment Autoloans:

 

Ally: $33k / $25k Balance Opened 6-2016

NFCU: $25K / $20K Balance Opened 7-2016 (soon to be ex-wifes car in my name, should get possession when decree is finalized then trade both cars in for one)

 

Last Scores:

 

EX 665 EQ 677 TU 659

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One 2+ year old 30-day late is your only baddie? Before applying for anything else, I would do everything I could to maximize the FICO. You have accounts with $1 and $2 balances. These should be zero. Pay off all the cards that you are paying in full before the statements cut so they report a zero balance. You want fewer accounts with balances. If my math is correct, you are at about 53% overall utilization. How quickly can you get that below 50%? That is a threshold that should cause a score bump.

 

Do you know what your debt to income ratio is? If you are able to get your score high enough, this could become the limiting factor. Depending on how high your score goes, you may be better served with an installment loan at least in the short term.

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One 2+ year old 30-day late is your only baddie? Before applying for anything else, I would do everything I could to maximize the FICO. You have accounts with $1 and $2 balances. These should be zero. Pay off all the cards that you are paying in full before the statements cut so they report a zero balance. You want fewer accounts with balances. If my math is correct, you are at about 53% overall utilization. How quickly can you get that below 50%? That is a threshold that should cause a score bump.

 

Do you know what your debt to income ratio is? If you are able to get your score high enough, this could become the limiting factor. Depending on how high your score goes, you may be better served with an installment loan at least in the short term.

It was 30 days late twice in the same year ( Oct and Dec 2013). The $14k is at 18% and the $1k is at 15%.

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Given the age of the lates, I think you can still have a pretty substantial score increase from reducing utilization. I would seriously consider moving your debt from revolving to installment. Even if you cannot get a lower interest rate, shedding the utilization with the resulting score bump should give you access to much better credit offers. You can then refinance the installment loan to a better rate or even move it back to revolving on a low interest offer as long as you have a plan for repayment before the offer ends as your score will be depressed once again.

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Given the age of the lates, I think you can still have a pretty substantial score increase from reducing utilization. I would seriously consider moving your debt from revolving to installment. Even if you cannot get a lower interest rate, shedding the utilization with the resulting score bump should give you access to much better credit offers. You can then refinance the installment loan to a better rate or even move it back to revolving on a low interest offer as long as you have a plan for repayment before the offer ends as your score will be depressed once again.

Yep. I'm in a weird spot because USAA said I didn't mean the qualifications for the career starter loan because of too many inqs and installment loans with a balance over $2499. Navy Federal wouldn't give me a debt consolidation loan but gave me another $10k limit card at a low rate.

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I'm just curious. How did you get another account with NFCU when you have a closed account with a balance?

 

ETA: I'm asking because I'm hoping to be able to revive my NFCU relationship later this year with a BT on the closed account.

Edited by belleama

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I'm just curious. How did you get another account with NFCU when you have a closed account with a balance?

 

ETA: I'm asking because I'm hoping to be able to revive my NFCU relationship later this year with a BT on the closed account.

I have my direct deposit go into a NFCU checking account every month, I have an open auto loan with NFCU and have never been late with them on the many installment accounts I have had with NFCU. I was never late on the closed account and from the moment it was closed I have paid more than the minimum payment on time. I thought it was weird that they would deny me a debt consolidation loan to pay off the closed card but give me another $10k credit limit card. I did think about it and i imagine it had something to do with requiring a underwriter to review my application. When I applied online after the branch said I was denied for the debt consolidation loan it gave me the 24 to 48 hour wait message. Also, when I did the application I requested to balance transfer off my military star card so maybe that had some sway into their decision.

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