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BT and Usage Percentage


A Credit Ed
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Need to BT about $12,000 total from a Discover and a Cap1 BT that is expiring next month.  Was planning on splitting that among two or three cards due to keeping credit usage per card under 30%.  But I was approved for a Commerce Bank 0% BT fee card for $17,500.  If I transfer both Disc and Cap1 over to Commerce, I pay no fee but would use ~71% of available credit.

 

I'm thinking it's worth the FICO hit to avoid the 3% BT fee other cards would have..  My only fear is that some other lender might see 70+% usage on one card and balance chase me.

 

Any reason not to go over 70% on a single card?  No other card ever goes above 5-10%.  

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You've been holding out on us!  I wasn't aware Commerce Bank had a credit card with intro terms that provided no-fee balance transfers!

 

I tried to find such a card and failed.  I've avoided Commerce credit cards until now, deeming them "nothing special".  I'd love to have an app for your card up my sleeve at a future date!

 

As to your question, a single account at up to 80% utilization isn't likely going to raise any red flags.  Your score will take a moderate hit of, maybe, up to 20-30 points.  But provided you have a strong score to begin with (say 760+), or you don't intend to apply for anything until you're back under 50%, there's likely little in the way of consequence.  (If you fix monthly payments at 4%+ of your highest bt balance, you'll look good on manual review.)

 

Foremost, credit is a tool; use it as such.

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1 hour ago, hdporter said:

I wasn't aware Commerce Bank had a credit card with intro terms that provided no-fee balance transfers!

It was a preapproval that came in the mail.  Nowhere during the application process could I see the 0% fee for the BT, so I will certainly be keeping the letter they mailed me.

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19 hours ago, A Credit Ed said:

It was a preapproval that came in the mail.  Nowhere during the application process could I see the 0% fee for the BT, so I will certainly be keeping the letter they mailed me.

 

Smart thing to do.  FWIW, at some point, in accepting the offer, there was likely a link to click on to review terms again.  But, as you know, you'll be presented with the bt terms again at the point that you initiate a transfer.

 

Congrats on a nice find!

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  • 2 weeks later...

Just started to get back into the BT/0% on purchases game again since its heyday. I remember all the banter back then how my credit was going to be destroyed with so many cards at 100%. Well that never happened but I would not recommend it for everyone. I am mainly focusing on business cards now. Not going to get rich but 100k in T-bills is not chump change. Ink Cash and Unlimited are great cards for this especially with the SUB/referral. 

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  • 2 weeks later...
On 7/10/2023 at 4:53 PM, A Credit Ed said:

Nowhere during the application process could I see the 0% fee for the BT, so I will certainly be keeping the letter they mailed me.

 

Quote

APR for Balance Transfers 0.00% Introductory APR for 12 monthly billing cycles after account opening. After that, your APR will be 19.24% to 30.24%

----

Transaction Fees- Balance Transfer
Either $10 or 5% of the amount of each Balance Transfer, whichever is greater.

 

This is from their pdf for the "Special Connections" visa. "View Important Terms for the Special Connections® Visa® [PDF]"

 

Just a heads up. I would suggest inquiring with them about the transfer fee beforehand rather than fighting a 5% fight after the fact.

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1 hour ago, greendeh said:

Just a heads up. I would suggest inquiring with them about the transfer fee beforehand rather than fighting a 5% fight after the fact.

moot point - the transfer has hit my account and there was no transfer fee charged.

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  • 1 month later...

Do you mind sharing which exact card this was?  I don't actually need another card ATM but this is one feature I do not have on any card currently, and actually could have saved me a couple hundred bucks ~18 months ago.

 

Edit: never mind, after opening the PDF you linked I see it's the Special Connections (R) card.  Now I have to decide if I want to apply for another card.

Edited by supern8ural
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