Credit Card Questions

**Marie78** · 05-12-2008, 10:13 AM

I'm hoping for some advice with CC transfers. I have received many applications recently in the mail that are tempting me to transfer some or all of my remaining cc balance to a 0% interest rate. I have two cards and one I am paying down to 0% this month the other one I hope to within a year (if things stay the same as they are right now financially)

. It seems tempting to transfer the one CC I have at 13% to 2 different CC at 0%. Does anyone have experience with this? I got my CC card company to lower my interest rate to 13%, but that's as low as they are willing to go

.

**Frugal Nurse** · 05-12-2008, 10:21 AM

If you are disciplined and do not charge anything on your new 0% cc- I think it's a good deal.

Just remember,
If you charge on your new one you've caused interest bearing charges to occur and your payments go directly to the transfer balance first- and nothing goes to the new charges.

Therefore, you will be paying interest until you pay off the transfer balance.

What I did, is NOT use the cc that I transferred to. paid it off in the 6 months time. I used my old card for the emergencies and paid it off each month.

**lovestolaugh** · 05-12-2008, 10:27 AM

I do this all the time! It's called credit card swap! You will find that your current credit card company that won't lower your interest rate below 13% will change their minds after you transfer your balance to another card. They figure that you are either too stupid or too lazy to move your balance. In a couple of months they will be calling you begging you to come back at a much lower interest rate!!!! Hopefully by that time you can tell them no thank you. I don't need you!!! Anyways, it's usually a great idea. Just be sure to make payments on time because if your late they will jack up the interest rate. Hope this helps!!

**Marie78** · 05-12-2008, 10:41 AM

Frugal Nurse, did the CC company charge you extra in anyway for your transfer? I don't see where it says it on my applications but I wonder about any hidden charges to use the 0% balance transfer for one year.

I just called my CC company and they dropped my interest rate to 10.99%. It's slightly better than 13%, but I am really considering calling one of the cards with a 0% balance and transferring some of my current CC balance.

**Marie78** · 05-12-2008, 10:48 AM

Lovestolaugh, I just transferred half of my CC balance to a 0% interest CC and I am hoping my current CC company sees that and decides to go lower than 10.99%. Even if my current CC company doesn't go any lower with the interest rate I should be able to pay off that balance within several months and then pay my 0% CC balance before the interest rate goes up next May.

**FrugalMomof3** · 05-12-2008, 10:29 PM

Keep in mind there is a balance transfer fee, usually anwhere between 3-5% of the amount of the transfer. Make sure it's worth it to do the transfer...

Example: You transfer $1000 from a higher rate interest CC to a 0% one but there is a 3% transfer fee which equals to $30.

I mean if your transferring $5000 that's a $150 transfer fee if at 3%, check to see if there is a transfer fee first off and then see if it evens out or do you actually save $$.

**Marie78** · 05-13-2008, 10:20 AM

Thank You Tracy, I didn't know about the transfer fee until I called to transfer the maximum amount I could transfer to the 0% card. It was $99 (that's the maximum this company charges for however much you transfer). The transfer fee is actually less than the interest fees the total amount on one CC was generating.

I really hope I'll be out of this situation by next year at this time. I have had CC debt for 6 years and I have made the biggest dent in the balance this past year.

**luv-my-lexi** · 05-13-2008, 10:33 AM

That is what we did to get out of our cc debt. Transfered a couple of large cc's to a 0 interest offer and socked money to them. They were paid off in no time.

Now the discipline is there, that when a cc is used, it is paid in FULL each and every month.

**Marie78** · 05-13-2008, 11:27 AM

Originally Posted by luv-my-lexi

That is what we did to get out of our cc debt. Transfered a couple of large cc's to a 0 interest offer and socked money to them. They were paid off in no time.

Now the discipline is there, that when a cc is used, it is paid in FULL each and every month.

This is what I hope to do, without as much money going towards the interest on the CC, I hope to be able to pay down the balance quickly.

**Frugal Nurse** · 05-13-2008, 07:12 PM

Sorry.. I didn't get on line all day.
It was so long ago that I did that- that I honestly didn't remember a transfer fee. I think back then (3 yrs ago or so) that the cc weren't doing a cc transfer fee.

But wow!!! good to know! And good to share!
Thank you FrugalMomOf3

**Marie78** · 05-13-2008, 07:27 PM

Many of the 0% transfer for one year have a transfer fee. The ones I have are capped at 3% of the transfer or $99 for the total transfer. There are some offers out there that have no cap on the amount they will charge for the transfer, so it seems the consumer has to really beware with these transfers!