Credit Card Transfer Balance

Hmp123 · September 2014

I am looking into transferring my credit card balances to a new card with a 0% interest promotion. The first one I received is for 9 months with a rate of 13.15% afterwards and the other is 0% until January 2016 than a 22.99% interest rate. Do I do the 9 month one since the interest rate is cheaper or do the January 2016 one and than look for a new card in January 2016. Also, with a credit cards transfer balance do they hit you with the interest if its not paid before the promotion period for the full balance that you transferred or just what the current balance is or is every company different?

formerlyGDaisy09 · September 2014

How much are you planning to transfer and how quickly do you expect you can pay it down?

They will charge you a transfer fee, usually 3-5% of whatever you're transferring. I've heard of store cards charging interest on everything if not paid in full at then end of the promo-period, I'm not sure about larger companies.

Hmp123 · September 2014

They are both offering 0 fee to transfer

hoffse · September 2014

I would be very careful with this. There are usually catches buried somewhere.

If you are going to do it, make sure you can pay off the card entirely before the interest rate kicks in again.

ToastieSimons · September 2014

1) how much are you planning on transferring?

2) what is the current interest rate?

3) can you pay it off in the promotional period?

we balanced transferred our debt onto one credit card. but we had 0% for 15 months. and we're almost done paying it off at 6 months. Our old interest rate was 17.99%. We got charged a 3% fee which was about the same at 2.5/3 months of interest charges we paid before. it turned out to save us a lot of money.

i have never had a balance transfer charger you the back interest if it's not paid off in the promo period. I've only heard of that on store cards.

Xstatic3333 · September 2014

Some balance transfer offers will charge back interest, while others don't. The fact that yours aren't charging a fee makes me think you should read the fine print very, very carefully. I also wouldn't do this unless you're 100% committed to being done with CC debt. I've done one myself, and don't regret it, but I know many people who have gotten in trouble by opening a new line of credit before they're really ready to change.

If you do do it, and confirm that there's no back interest, I'd take the one with the longer promo period but look really closely at making changes and sacrifices needed to pay it off within that period. Once you do that, interest rate doesn't matter

Credit Card Transfer Balance

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