Balance transfer question (please help!)

Submitted by bmslp21 t3_z7htxp in personalfinance

I have about 5k of cc debt that I’m paying too much interest on. I have two credit cards, one with the debt and one that is almost paid off. I would like to open a (third) credit card and utilize a balance transfer along with a promotional 0% APR to pay off this debt. I am looking into a discover it card or citi dc. My issue is I don’t want to apply for a new credit card and only get approved for, let’s say, $1500. That hardly seems worth it. I suppose my question is if there is a way I can ensure a higher credit limit without submitting an application and thus opening a new card that wouldn’t meet my balance transfer needs. My credit score is ~720. TYIA!

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t-poke t1_iy6nvac wrote

No there is not. You have to submit an app to find out what your credit limit will be.

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racf599 t1_iy6yplh wrote

if you transfer $5000 to the card with the 2.99% interest for 6 months and no balance transfeer fee, and you pay $300 per month, you will pay $64 in interest for those 6 months and your ending balance will be just under $3,300. if the interest then goes up to 12.99%, you will pay off the balance in full (at $300 per month) in another 12 payments and your total interest paid will be $290. If you do a balance transfer to a card with a 5% balance transfer fee and 0% interest, the fee will be $250 and the balance will be paid off in the same 18 month timeframe. So look at the exact terms you can get, and decide what's cheapest.

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bmslp21 OP t1_iy6yxtn wrote

This is incredibly helpful thank you!

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Greenappleflavor t1_iy6nvd9 wrote

Some cc issuers now can tell you’re approved for x in CL vs being preapproved… however, why not just see if the cc with debt almost paid off has a balance transfer offer? You don’t need to apply for a new credit card if they have 0% apr balance transfer offer for you.

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bmslp21 OP t1_iy6pgps wrote

This is a great idea. I just checked and they have a 2.99% apr for 6mo and no balance transfer fee. Not sure if this is worth it. I would also have to ask for a limit increase as my limit is 3900

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rons27 t1_iy6o93j wrote

Discover has always given me smaller credit limits than other cards. If you're hoping for a larger limit I'd try elsewhere.

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