Can one card be considered an AOR? Just got my new $100k card today which had 0% till 12/31/07, But had the 3% fees so never considered using if for AOR money. So I called to activate card and CSR asked if I wanted to do a BT or have money put into a checking account, I told him no because of the 3% fee. He then surprised me when he said how about if I could cap it at $75? I said sure. He needed to break it up and put $2425, I guess that was for the $75 fee into one account and $97500 into another. So I guess I did a mini-mini AOR but did get $99,925 of 0% money for over 14 months. Now I am worried about my 800+ FICO days being over, but I guess what was the use of having it if I did not take advantage of it. That card gave me a total CL of $182K, The other $82k shows as 0 utilization since I pay before they report. So now my utilization will suddenly be over 60%, I guess in AOR terms this is still good but will it kill my score? Now I have to learn how to live with debt. might need to be medicated
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posted: Oct. 16, 2006 @ 5:26p
ETFnerd
Happy Member
posted: Oct. 16, 2006 @ 5:31p
so you are now using 100% of your available cl on this card in a bt?...smart...
ETFnerd
Happy Member
posted: Oct. 16, 2006 @ 5:33p
scott1961 said: might need to be medicatedNo, you need to read the aor threads before you do an aor.
RS4Rings
Back in Rehab
posted: Oct. 16, 2006 @ 5:35p
ETFnerd said: so you are now using 100% of your available cl on this card in a bt? Yes, Thought that might be bad but CSR told me it was fine. Should I pay a good amount on my first bill? I thought your report goes by total utilization? Not planning on applying for any more credit for awhile anyway's. Also was a cash advance and not a BT
xpguy
Senior Member - 3K
posted: Oct. 16, 2006 @ 5:37p
I would have asked for the $75 cap in BT fees in writing. If you get hit with a $3000 BT fee, CSR can always deny that he never mentioned such a thing. Having near 100% utilization on 1 card is just asking for trouble
edit: if you do a quick AOR now before that balance shows up on your credit report it will benefit you more, otherwise that balance will cripple you if say you wanted to do a real AOR in a few months
jdbeast0000
Senior Member - 1K
posted: Oct. 16, 2006 @ 5:40p
Do I understand correctly that you signed up for a credit card and they gave you a 100k credit limit? No conolidation or anything? You may have addressed this in other threads but its news to me.
edited for ignorance
ETFnerd
Happy Member
posted: Oct. 16, 2006 @ 5:41p
scott1961 said: Also was a cash advance and not a BTyou may have had an exception made, but this is not good if you didn't get the waiver in writing like xp suggests.
xpguy
Senior Member - 3K
posted: Oct. 16, 2006 @ 5:43p
scott1961 said: Also was a cash advance and not a BT I would also check that you also get 0% APR on cash advances too. CSR might be a total idiot thinking that a cash advance is the same as a BT
jdbeast0000 said: Do I understand correctly that you signed up for a credit card and they gave you a 100k credit limit? No conolidation or anything? You may have addressed this in other threads but its news to me.
edited for ignorance he got a 100k card, he has 82k in other cards. He did a 100k BT on the single card, leaving him with 55% overall utilization, but 100% on that one card.
sammy1224
Senior Member
posted: Oct. 16, 2006 @ 5:46p
Who is the card issuer and what kind of card is it? I have a $102,000 CL on my Chase Premier Pass that has 0% BT offer attached to it for 12 months (well, 11 and 1/2 months now) and a $75 cap on the fees.
RS4Rings
Back in Rehab
posted: Oct. 16, 2006 @ 5:54p
xpguy said: I would have asked for the $75 cap in BT fees in writing. If you get hit with a $3000 BT fee, CSR can always deny that he never mentioned such a thing. Having near 100% utilization on 1 card is just asking for trouble
Each transfer was recorded since I had to acknowledge approval and how could they have transferred $99,925 with a $100k line, if there was a 3% fee?</blockquote>
RS4Rings
Back in Rehab
posted: Oct. 16, 2006 @ 5:57p
jdbeast0000 said: Do I understand correctly that you signed up for a credit card and they gave you a 100k credit limit? No conolidation or anything? You may have addressed this in other threads but its news to me.
edited for ignorance I talked about how I got it in the High credit limit thread Text
ETFnerd
Happy Member
posted: Oct. 16, 2006 @ 5:59p
scott1961 said: Each transfer was recorded since I had to acknowledge approval and how could they have transferred $99,925 with a $100k line, if there was a 3% fee?</blockquote>They can raise your cl by $3K and if they're really nice, they can say you exceeded your limit and charge you a fee. CC folks are really accomodating in these ways. Not that this will necessarily happen to you, but you seem to have left yourself open for this possibility.
ETFnerd
Happy Member
posted: Oct. 16, 2006 @ 6:00p
I was hoping this wouldn't be mbna. They seem strict about this kind of thing...I would think about:
(1) getting utilization down to less than 70%, (2) that the $75 fee was the only transaction cost, and (3) that my profile at mbna was not flagged going forward as a high-risk borrower. Why kill the goose for one single golden egg?
I guess it is going to hit credit score badly as soon as you cross 90% CL. May be you want to pay $10K before end of cycle so that utlization reported would be <90%.
xpguy
Senior Member - 3K
posted: Oct. 16, 2006 @ 6:05p
For starters, they could tack a $3000 fee later, and magically go over your credit limit. Or they could later, upon further review, only transfer $96925 into your account to leave room for the $3000 fee. You leave a hole for them to mess up and screw you. These things shouldn't be done haphazardly.
sandy05
Senior Member - 1K
posted: Oct. 16, 2006 @ 6:09p
scott1961 said: xpguy said: I would have asked for the $75 cap in BT fees in writing. If you get hit with a $3000 BT fee, CSR can always deny that he never mentioned such a thing. Having near 100% utilization on 1 card is just asking for trouble
Each transfer was recorded since I had to acknowledge approval and how could they have transferred $99,925 with a $100k line, if there was a 3% fee?</blockquote> They really don't care if you cross credit limit. I had one such experience with De1l when CSR encouraged to make a purchase for more than $$$ left on my CC. I laughed and hung up on her.
RS4Rings
Back in Rehab
posted: Oct. 16, 2006 @ 6:16p
Like I said, The CSR recorded the details of the offer and I had to verbally approve. If he did play any games I will deny ever authorizing the advance which would force them to play the tape
RS4Rings
Back in Rehab
posted: Oct. 16, 2006 @ 6:18p
sandy05 said: I guess it is going to hit credit score badly as soon as you cross 90% CL. May be you want to pay $10K before end of cycle so that utlization reported would be <90%. I will do that
adiganifatwallet
Senior Member
posted: Oct. 16, 2006 @ 6:23p
what credit card is this?
asdf9876
Happy Member
posted: Oct. 16, 2006 @ 6:25p
That was a bold move Scott. If I remember correctly you wre upset when your 800+ credit score dropped 8 points when you applied for a credit card.
Now you've jumped off the deep end and have >90% utilization on a single card and >50% overall utilization. I am completely guessing here but based on how upset you seemed over 8 points I hope you've prepared yourself for 25-50-75 point drop in your credit score. Or are you planning to pay half of it off before your statement closes?
I'd like to see Dave Hanson's opinion on this.
edit: I'm glad to see you just said you'll drop below 90% soon. edit2: Oh by the way, I'd say this is more "BT investing" then AoR. This had nothing to do with the number applications or number of new accounts you opened in a given time period.
adiganifatwallet said: what credit card is this? "Individualized BankCard Services a Division of FIA Card services" Which is now part of MBNA
RS4Rings
Back in Rehab
posted: Oct. 16, 2006 @ 6:57p
asdf9876 said: That was a bold move Scott. If I remember correctly you wre upset when your 800+ credit score dropped 8 points when you applied for a credit card.
Now you've jumped off the deep end and have >90% utilization on a single card and >50% overall utilization. I am completely guessing here but based on how upset you seemed over 8 points I hope you've prepared yourself for 25-50-75 point drop in your credit score. Or are you planning to pay half of it off before your statement closes?
Now I am stressing out about what I did, I think my mind went blank when he offered me $75 cap. Maybe I will just pay the whole thing off online just before it reports and even with the $75 fee I could still make over $300 profit. Not sure why I care so much about my score since I will never borrow money. Seems my reports always say I don't use enough credit and I thought that maybe borrowing this $100k then paying off would help in the long run.
as usual, i agree with asdf... this isnt AOR, this has nothing to do with getting multiple cards, just using one o% BT offer.
Also Scott WTF are you doing? Ive tried to guide you several times on how to profit from credit. An important part of the cc game includes getting many new cards from many issuers, but you seemed to ignore everything and ranup one card to max utilization and a very risky total utilization?
With your (previous) excellent credit score and high income, you could EASILY get 200-$300k in new credit lines with an App-O-Rama.
Dont payoff this juicy 100k 0% deal you just took out...thats $5000 profit. Maybe pay it down a bit At this point I suggest you IMMEDIATELY apply for several more cards from several issuers. This high balance likely hasnt reported to the bureaus yet, and now is your chance to get new cards from other issuers to reduce total utilization.
swantz84
Senior Member
posted: Oct. 16, 2006 @ 7:01p
SUCKISSTAPLES can I PM you a question?
RS4Rings
Back in Rehab
posted: Oct. 16, 2006 @ 7:09p
SUCKISSTAPLES said: as usual, i agree with asdf... this isnt AOR, this has nothing to do with getting multiple cards, just using one o% BT offer.
Also Scott WTF are you doing? Ive tried to guide you several times on how to profit from credit. An important part of the cc game includes getting many new cards from many issuers, but you seemed to ignore everything and ranup one card to max utilization and a very risky total utilization?
With your (previous) excellent credit score and high income, you could EASILY get 200-$300k in new credit lines with an App-O-Rama.
Dont payoff this juicy 100k 0% deal...thats $5000 profit. Maybe pay it down a but At this point I suggest you IMMEDIATELY apply for several more cards from several issuers. This high balance likely hasnt reported to the bureaus yet, and now is your chance to get new cards from other issuers to reduce total utilization. Ok I guess I messed up, Am now heading over to app-o-rama.com and applying for every capped offer I can find
sandy05
Senior Member - 1K
posted: Oct. 16, 2006 @ 7:42p
I did mini AOR 4 months earlier and made mistake of CL utilization of > 90% on 5 credit cards (60K 0% BT). To make matter worse, my credit history is only 2 year old. Though total CL utilization was around 55%, my credit score dropped more than 170 points. I'm slowly recovering from this hit.
RS4Rings
Back in Rehab
posted: Oct. 16, 2006 @ 7:49p
SUCKISSTAPLES said: and now is your chance to get new cards from other issuers to reduce total utilization. still a little confused by utilization, If I pay $20k off before it reports my total current utilization will drop to under 40%. Do they go more by utilization of one card or your total utlization?
Individual utilization and total utilization are both important.
dont pay 20k off... 10k is enough to get you below 90% individual utilization. Then reduce your total utilization with new cards, bc once this large new balance starts reporting getting more cards will be difficult
asdf9876 said: I'd like to see Dave Hanson's opinion on this.Sure, FWIW. I'd like to try to help Scott, who's made a point to share information with the community. edit2: Oh by the way, I'd say this is more "BT investing" then AoR. This had nothing to do with the number applications or number of new accounts you opened in a given time period.You took the words out of my mouth. This isn't about any applications, much less bunching them together.
scott1961, here are my suggestions:
1. RELAX. There is no need to panic--you have done nothing that cannot be undone relatively easily. Moreover, it was moving hastily that caused you the anxiety in the first place. To paraphrase Ross Perot, this is a case where one should "measure twice, then cut once."
2. Check your statement date. MBNA will generally not report your balance until your cycle closes, UNLESS they change your credit limit AGAIN. They are unlikely to do this unless you request it, or unless your credit profile drastically changes. So, until your cycle closes, no one should even know that you did this huge BT, with its big utilization.
3. Review your credit profile. What are your overall aggregate credit limits? If they are over 300K or so, and this is your only BT, you don't have to really worry about overall utilization--just "per line" utilization on this card. OTOH, if your limits are below $200K overall, then you will want to take action to raise them "while the getting's good"--that is, BEFORE the new MBNA line reports.
4. Don't do a big AOR without thinking it through. Large AORs WILL hurt your credit profile. It's POSSIBLE that the damage of many new inquiries and lines will be outweighed by a lower overall utilization. But that depends on what your aggregate limits are now, and how large the lines are that you get.
5. If you have a few other lines, focus on getting them higher. Why not call up other issuers and say, "MBNA gave me 100K. Can you match that, given my exemplary credit history? If not, how close can you come?" With your income and history, you should not have much problem boosting the other lines you have. These will cost you a few inquiries, but won't send up any "warning signs" on your credit profile. They will help you regardless of what other action you take, AOR-related or otherwise. And this can best be accomplished while your profile is still top-notch.
6. Do cut utilization on the MBNA line before it reports. As I've said many times, 90% is an absolute maximum. But if you have no other lines with balances, and can get your overall aggregate credit limit up, you may be OK just keeping it at 89%.
I hope this is clear, and that it helps. Feel free to follow up.
MBNA is very generous/flexible on consolidating credit lines and offering 0% BTs.
As long as there is one account (out of many) that has a 0% offer, one can consolidate all lines to that account and take out a lump sum (either BT or direct ach to checking). After the 0% offer expires, one can start anew with another card with 0% offer...
For example, I have a total of $124K credit line with MBNA (about ten cards) and are earning interest on a $60K 0% offer (for about a year).
The $75 fee can never be waived in this case unfortunately.
I have a question- Reading all of the responses, I can't help but get the feeling that the damage done (let's say if you go over 90% util for example) is longer term than just that month..... I would think that let's say 3 months from now he paid down the line significantly, would his credit score not jump right back up the next month after it reports/updates? Or does it take longer to refresh back to higher scores?
Also, when people talk about consolidating, are they talking about actually closing one of the cards and moving the line over? Or just moving the majority of the line over but keeping all lines open?
babaamit, your questions have answers, but details are best left to the appropriate threads (scores, investing strategy, etc.)
I will say that the "damange" gets repairs as soon as the new balances get reported, provided no adverse action occours during the interim (that then also gets reported).
RudolfSchmidt
Cranky Member
posted: Oct. 16, 2006 @ 11:44p
I was on the phone with MBNA earlier this evening, before I saw this thread, asking about promotional BT offers. The CSR was rather aggressively trying to talk me into a 1% BT until July with a $75 fee, claiming that I had to take the offer right now; if I called back later, it might not be available. He even offered to deposit it directly into my checking account. Then he offered to request an instant credit increase (from 28,800 to 35,000), which turned out not be instant after all. All in all, I got the impression that MBNA's money is burning a hole in its pocket.
3. Review your credit profile. What are your overall aggregate credit limits? If they are over 300K or so, and this is your only BT, you don't have to really worry about overall utilization--just "per line" utilization on this card. OTOH, if your limits are below $200K overall, then you will want to take action to raise them "while the getting's good"--that is, BEFORE the new MBNA line reports.
His overall limits are only 182k, Scott provided that info in the OP:
scott1961 said: That card gave me a total CL of $182K, The other $82k shows as 0 utilization since I pay before they report. So now my utilization will suddenly be over 60%
Thus, I agree it is important he take action before this MBNA balance reports.
Holy crap? OP got a 100k limit CREDIT CARD on a NEW account? Was this done through consolidation and did you have to provide financial docs?
I have never seen a credit card that offered that high of a limit. I am sure it wasn't a charge card because of the balance transfer involved.
Skipping 183 Messages...
RS4Rings
Back in Rehab
posted: Apr. 24, 2007 @ 10:25a
Highest is about $80K left on my FIA card, Just got that line increased to $125k, So utilization is a little better on it, Also I have until December left, So don't want to pay that one down. I have less time left on the other $25k so I guess paying those off before would be best. Only one card showing a balance should look pretty good. I get some very juicy business offers mailed to me at my house and company so I guess I should take advantage of them. Did not do before because I was little embarrassed to explain it to our accountant. Not any more, When he came in recently to do our taxes I told him about the $100k that FIA had given me. He said he wished he could get a deal like that, He said he recently got $15K in 0%
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