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a question for kb

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Hi Kb...I was reading a post you responded to about increasing your score.

You said: Also balance transfer - this helped my scores the best, you don't want the lenders to see that you are willing to jump when there is a better rate. When you do balance transfers this is a dead give away. BUT if you transfer all but maybe $50 to the new account, then pay the remaining $50 off over the next few months by minimum payments (the credit report will not reflect that you did a balance transfer, instead it will show zero balance as agreed).

Okay...but won't this be considered a hard pull? To get a balance transfer, won't the new CCC have to pull your report? I'm looking to do a balance transfer, and do it the way you suggested. But I don't want another inquiry on my CR. I just opened a Home Depot card, and that gave me a hard pull, and dropped my score 8 pts :(.

If I do a balance transfer, won't that drop my score some more?

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Balance Transfers can work for existing or new accounts.

Them department store cards are not usually for BTs (and usually if they do allow BTs - I would not recommend it with the high interest they usually charge).

So in this case if you are wanting a better rate then what your existing account show now, then yes that would put you shopping for a new card - resulting in additional inquiries.

The department store cards are ok, when you are 1st getting a leg up, but once you start increasing your scores, then you want to practice good financial planning and establish revolving accounts that can be accepted anywhere like the major master card / visa card companies and benefit from the lower interest rates available out there.

In all my years with my Lowe's account I have never negotiated a lower interest rate, I still keep it, since it adds age to my file, and can in an emergancy use it for major applicances - but I definately won't be living off of it.

So be wise before you go shopping, if you can pay your balance down to peek the scores first - recommend you do that.

What I had to do was pay minimum balances on all my accounts - and at the same time pay an extra $50 to the highest rate interest card, once that one was paid down, I then would move to the next. If you have the spare money - practice restraint on using it for other things, put it towards that card. In some cases I was paying $100 additional each month.

The rewards are there - when you see the balance reduced and know you are that much closer to having it done with. It takes time, took me 2 or 3 years of this to get our debt down. Of course with buying a new house - we had to use a good portion on the cards again. So here I am back at square one, paying down again. But this time around we made vast improvements with a house to show for our efforts.

So there are always small set backs, :-)

[Edit by kb9tbq on Sunday, June 8, 2003 @ 04:14 PM]

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That's exactly what we want to do...make improvements on the house we just bought. It's an old house and needs work, that is why I applied for the Home Depot card. They did give me a high limit and said I can ask for a higher limit...but I'm not lol. I do have 1 platimum and 2 gold cards with high limits. Both gold cards has such high rates, and I called them and asked if they would reduce the rate...they said NO, they don't do that lol. So I'm looking to get a CC with a low rate to transfer those 2 cards over to. The platimum card just reduced my rate to 9% fixed...so I'm keeping that card. If I can find a CC that offers a low rate fixed... even with the inquiry...I feel it will be worth a few points lower on score. I just don't want my score to drop too low where I won't be approved for the "line of equity" we are applying for soon. If we can get this loan, we will pay off most of our CC's and just keep 4 or 5 cards between us. I learned all this from you kb ;)...just by reading your posts lol. I can't thank you enough for all your help and wisdom. I wish you all the luck in your new home...stay well! :)

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<blockquote>Originally posted by VeeGee

The platimum card just reduced my rate to 9% fixed...so I'm keeping that card.


Use that platimum card to your advantage - pay like crazy on this one to free up room, then transfer the high one over to it, and repeat paying down.

I did just that between Citi Bank Card and Capital One Card of mine, I kept paying the capital one card, then transfered balance from the Citi card to it. Did this once or twice till that Citi Bank card didn't have any more teeth to mess with me.

Sometimes going backwards can help to, on paying down.

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