02-18-2013 06:29 AM
I have two cards. CSP - 28,400 CL and Amex Plat
I am carrying a 10k balance that I plan to pay off in a few months and I wanted to BT to Discover IT for the 0%.
Well my account just got setup this morning and when I logged in it says my CL is only 5500 which is not enough. I called them
and they said I need to wait 6 months to CLI. My question is if that I cannot transfer the whole balance then I do not want another
card. I was thinking of just cancelling the card. I know it will hit my credit but I am unsure of what to do now? How hard will it
affect my credit?
02-18-2013 06:32 AM - edited 02-18-2013 06:34 AM
In terms of paying it off, how many months is a few months?
What's your APR on the CSP?
What's the transfer fee on the discover?
If the transfer fee is < than the CSP's APR divided by 12 (mo. in year) times the # of months you would pay the balance off in, then doing a partial balance transfer makes sense. Otherwise it does not. Example, transfer fee 3%,CSP APR 15.24%, you were going to pay it off in 6months. That's 15.24 / 12 (to get monthly APR) TIMES 6 months = 7.62% APR. So 3% < 7.62% so you save more than 50% on your interest.
Also, Discover It is a great card to have so I recommend keeping it open regardless of whether you end up doing a partial balance transfer to it or not.
02-18-2013 06:39 AM
How bad will it affect my credit if i close it?
I believe my APR is 12.99 and i would pay it off in 6 months
Its hard to say how it will affect your credit if you close it, if you only have 3 cards then yeah it could affect it because your utilization % will raise again. Honestly I'd leave it open.
You may want to check your APR because their signup says 15.24 and that's what we're at - not saying yours isn't 12.99 just you may want to double check that.
Even at 12.99 though, assuming a 3% BT fee you're going to come out ahead.
02-18-2013 06:44 AM
i see what you mean .. i just dont like how a lot of cards .. i just wanted to keep the csp and amex .. only using discover for the 0% .. but now that i cant transfer the whole amount .. it kinda seems pointless
02-18-2013 07:00 AM
You can transfer 5300, the 3% fee will add $159, so your balance on the discover it card will be 5459.
The interest on 5300 at 15.24% APR for 6mo is $403.86*. So you COULD effectively save $244.86* by doing the balance transfer.
Moreover though, is the BT offer for 12months? If so, you could do this:
Pay $454.92 to Discover It for 12 months, and your $5,459 will be paid off when the promotion expires.
The remaining $4700 on your CSP at 15.24% will cost you less than $358*.14 in interest if you pay it off in 6 months, or less than $716.28* if you pay it off over 1 year.
* Amortization will reduce all the amounts because as you pay principal your interest will be reduced.
02-18-2013 07:21 AM
the discover is 0% over 18 months
Well even better, you can pay the $5459 off over 18months with 18 equal $303.28 payments. And focus the rest of your money on paying off the CSP balance as quickly as possible
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