Increasing Credit and Utilizing 0% Interest on a Balance Transfer

_{Stuck in my head: Allister – D2}

In my last post I talked about why I sold my 2019 Subaru WRX STI. Since that debt is off the books it should potentially improve my debt to income ratio and allow me more credit to be accessed. 

The next step I did was apply for a new credit card that offered a 0% balance transfer for 18 months. I literally Googled “0% balance transfer” and even applied through the Credit Karma app on my phone. 2 offers got approved from Citi Bank and US Bank. The Citi card was approved with a greater credit limit than US Bank, but that’s what I’m working with right now. 

The first transfer to the Citi card will help me save around $123.00 per month in interest. I’m not proud of the situation, but this is the process to improve it. That $123.00 can start going towards the principal balance instead of going nowhere. The disciplinary action will be leaving the previous credit card alone, or pay each small monthly balance in full. 

I haven’t decided what to do with the US Bank credit card yet. I could apply a balance transfer to it, but the credit limit is not significant. I’ll think about this further, but it would follow the same process as the Citi card if pursued.

I’ll report back on this after I start completing a good trend in the payments.

Do you have high interest credit card balances that are becoming stressful? Are you able to apply for 0% balance transfers on new credit lines? Are you currently in the middle of one? I think it’s worth seeing what’s available if you get approved. The credit inquiries will show up on your credit report, but the temporary ding is still better than paying too much on unnecessary interest!