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Really Important ?'s About Balance Transfers / Credit Checks


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Hi Everyone,

 

Do brand new credit accounts ever check your credit when they perform a balance transfer for you at all?  I assume they don't, if they just checked your credit to approve you for their own credit limits most recently, correct?

 

Also, if a card is paid off through some balance transfers, and they are fully paid up before these balance transfers, with NO missed payments and NO maxing out of their original credit, will they check credit reports before they allow you to make new purchases with that card immediately afterwards, once their balance has been transferred to those new accounts too?

 

Thanks For Any / All Replies Here.

 

 

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If I understand what you're contemplating is using a new CC you just got, to pay off older good accounts and then use those cards to buy something else?

 

I'm not sure why you'd want to do that...the only good reason is because you have a much lower interest rate on the new card, and the balance transfer fees don't offset the difference.  But, why turn around and use the old cards again?

 

As to who's going to look at your reports...its really difficult to predict.  Many CC's make a habit of checking frequently so they can adjust credit limits.

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Thanks for your reply, willingtocope.

 

I need this transaction because I am completing these transfers from 3 brand new accounts to clear enlough credit with my older card to cover enough new business inventory on one card immediately afterwards.  I am not sure that I can try and split the grand total purchase amount through more than one single credit card yet. 

 

But, the 'kicker' is that I have run into a horrible, and I mean, a horrible, month in October where I actually missed most of my credit payments and also had to receive cash advances to where most of my other older cards are maxed out right now too. This horrible situation is absolutely new for me, believe me, as I have never missed payments or taken cash advances all at once in a single month this way EVER.  The only credit account currently fully up to date for October IS the one where I will be paying off the credit debt balance to pay for this inventory with it as soon as I can now.

 

I can fix this current situation through these new inventory investments, as they have the potential to be EXTREMELY expansive with their receipts pretty fast! 

 

But I am just loving to complete these arrangements BEFORE anything negative becomes apparent on my next credit reports here.

 

Anyone else have any advice here, please?

 

Thanks So Very Much Again.

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Ouch.  I was just noticing that my bankruptcy is due to fall off my credit reports in a couple months.  10 years ago January, I was telling myself what I just read you saying.  "Who cares that our major customer just declared BK13 and left us holding $250k in receivables, all I have to do is borrow just a little more money to keep our company afloat, because we have the potential for this big new project, and when it comes thru, we'll pay everything off and everything will be fine."

 

It wasn't.

 

We didn't get the new project...but I still borrowed on our CCs and LOC and 2nd Mortgage on the house so that we could meet payroll.  Then...we closed up the company...declared personal BK 7 to get away from the personal guarantees...lost our cars...our house...and moved into our son's basement.

 

So...been there, done that, got the t-shirt to prove it.

 

My advice?  DON'T. 

 

Cut back...find some other way.

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Thanks for these replies again.

 

However, I believe I really should have phrased my last post as NOT asking for 'advice' at all.

 

I am deeply certain about what I am doing right now, no matter what.  But I appreciate your opinions, as obviously, everyone's life is different and your own situations have probably formed other beliefs about taking greater risks so far. Beliefs can always be fully changed with genuine attention to reversing them, however. 

 

I realize that not everyone has these same beliefs, but, part of what I actually do to receive my livelihood IS teaching certain spiritual lessons about  how 'you receive what you believe.'    So, I still feel that my own beliefs will lead to greater and higher financial receipts in my own situation.  

 

I suppose I should have please requested a more focused response instead.

 

Only just generally speaking, besides different creditors ever just looking at your credit reports on whims to ascertain any credit criteria for limit purposes, Etc... at ANY time,  does the fact that I am applying a balance transfer to an older card for at least around half of the total balance of it usually ever signal any reason to check reports by that receiver of the transfer payments for that person applying that transfer amount to that account anyways? 

 

Does my paying them off for that amount signal some reason for them to look at my report because they wonder if I am having any specific credit challenges right now, which they feel they might presume by me bringing in other creditors to pay them?

 

If they check and see that I am in a bit of a very recent bind credit wise, I just don't wish for them to freeze my freed up credit with them to avoid me also running into new challenges with their account too.  

 

 

No matter what anyone responds with here, I obviously assume that it is best for me  in my situation to be updated to the moments when these transfers go through, and to make that purchase immediately anyways....

 

Thanks So Very Much Again.

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Alright.  I'll answer your question. 

 

Yes.  A creditor about to pay another creditor will often check your reports before doing the transfer, particurlay if the amount is more than a few hundred.   An unsecured creditor isn't about to lend you a couple thousand or more without first checking to see what the odds are that you'll pay them back.  If you've missed a payment on the other cards, it will already be on your reports.

 

These days, most of the large credit card issuers subscribe to the credit reporting agencies "auto alert" services which keep them informed of negative events.

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