So apparently doing balance transfers will boost your score in the long run. We will see if it stays this high in the future. I know the Credit Karma score is not completely accurate in terms of exact number, but there is no reason why the trends should not be consistent across all of the companies. Here’s a look at the results from my Credit Karma account from the last year.

Its kind of interesting to correlate the big jumps with actual events. Starting in September I had an Amex card with 0% purchases for 12 months. I was spending all my regular monthly bills on that, then transferring the money to a savings account. I started doing this mainly in November and December, and you can tell Christmas shopping and everything racked up my balance. I’d say sometime then is when I hit my credit limit on the card and let it be.

This explains the large drop from a maxed out credit card.

Mid-January I completed the (2) balance transfers to pay off my car loan totaling ~$18,000. This was the drop in Jan/Feb creating my ultimate low point around 690. Since at that point I was only paying the minimum (~$125/card) and diverting the rest to savings to earn interest in the meantime, the score remained relatively level and low. With 3 cards maxed out to the tune of $25,000.

Mid-June is when my fiancé and I made a plan to formalize our budget in Mvelopes rather than my 20 or so complicated spreadsheets. At the time, FNBO Direct held all of my BT savings. It isn’t recognized by the mvelopes client (unfortunately), and had a measly interest rate

Another large jump going into August was the result of a 0% BT late payment scare on one card. Instead of waiting it out and gaining interest if Citi didn’t agree with me, I immediately drained the Wedding Fund to pay it off. One less maxed out card, and a Revolving Debt to Income Ratio lowed to around 19%.
In the end, my score is higher than before I experimented with the offers. A raise of nearly 30 points on the credit karma scale. This is likely a combination of
1) Adding nearly 1-year of on time payments on all of my accounts,
2) A paid off car loan which previously was in excess of 25k,
3) A continuous raise in credit limits on my cards (I consistently click the “Increase Credit Limit” button to see if any is given up without a credit check.
Overall, I think this is just a side “bonus” of doing BT transfer if you can handle it. It should never be a driver to take on such risk though. It’s interesting to see the trends, correlate them to an action, then compare how different things work. I’m excited to see where I will be in another 6-months when that last card is paid off. I doubt it will make much of a difference though.

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