I'm fairly new to the forum and I was just reading one of the topics here about credit card debt.
We had paid off our regular mortgage with a HELOC (Home Equity Line Of Credit) in 2003. We went from a balance of $20,000 7% fixed mortgage to a $30,000 HELOC at 3.5% variable . We needed the extra $10,000 for some repairs and a much needed bathroom renovation.
By 2006 the HELOC balance was down to about $17,000 but the rate had climbed to $7%.
I get lots of credit card offers all the time. My shredder is very well used. But one offer was from Capital One for a no fee balance transfer with a rate of 2.99% for a year, dropping to 1.99% until the balance transfer is paid.
I called and asked many questions about this. No balance transfer fee. No minimum purchases required. 2.99% for 12 months and then DROPPING TO 1.99%!
So we paid off our HELOC with a balance transfer from this credit card. We always pay at least the minimum and never use this card for any purchases. In a few months the rate will drop to 1.99%.
So far I haven't seen any downside to this, even though it seemed almost "too good to be true".
But my question is, what does this do to your FICO score? I hated to put $17,000 on a credit card, but the rate sure beat the climbing variable HELOC. The balance is now down to about $12,000 and I'm in no hurry to pay this off, especially when it drops to 1.99%.
So I'd like to know if moving debt from a HELOC to a credit card has any negative effect on a FICO score.
Thanks.
Sue J.
We had paid off our regular mortgage with a HELOC (Home Equity Line Of Credit) in 2003. We went from a balance of $20,000 7% fixed mortgage to a $30,000 HELOC at 3.5% variable . We needed the extra $10,000 for some repairs and a much needed bathroom renovation.
By 2006 the HELOC balance was down to about $17,000 but the rate had climbed to $7%.
I get lots of credit card offers all the time. My shredder is very well used. But one offer was from Capital One for a no fee balance transfer with a rate of 2.99% for a year, dropping to 1.99% until the balance transfer is paid.
I called and asked many questions about this. No balance transfer fee. No minimum purchases required. 2.99% for 12 months and then DROPPING TO 1.99%!
So we paid off our HELOC with a balance transfer from this credit card. We always pay at least the minimum and never use this card for any purchases. In a few months the rate will drop to 1.99%.
So far I haven't seen any downside to this, even though it seemed almost "too good to be true".
But my question is, what does this do to your FICO score? I hated to put $17,000 on a credit card, but the rate sure beat the climbing variable HELOC. The balance is now down to about $12,000 and I'm in no hurry to pay this off, especially when it drops to 1.99%.
So I'd like to know if moving debt from a HELOC to a credit card has any negative effect on a FICO score.
Thanks.
Sue J.