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Should I Tranfer Or Not?

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Anonymous
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Should I Tranfer Or Not?

My wife and I have 2 credit cards. One of the cards carry a balance of $5900, while the other carries an enormous balance of $22000. The lower balance card has a rate of 8.99% and the other has a rate of 9.99% I'm tired of sending two seperate payments and I want to get rid of these cards all together.The higher balance card has an offer of 0% for a year and I'm just trying to figure out if it would be wise to consolidate the two together. I should mention that if I did transfer the balance to the other card we would only have about $2000 left of credit on that one.It will not be used of course. Also, If I did transfer the balance, would it lower our credit score any since we are close to the limit or will it help it out since we are freeing up the balance on the other card. I have a score of 743 and my wife has a score of 720 or so and we may be purchasing a new house soon depending on if our current house sells and I just don't want to affect our scores too much if at all. I should also mention that we do not use the cards at all anymore and it if all goes well, I should have the entire amount paid off in 2-3 years. Any help will be greatly appreciated. Thanks.
Message 1 of 5
4 REPLIES 4
Anonymous
Not applicable

Re: Should I Tranfer Or Not?

Is there a BT fee involved? If so it might not be worth your while.
Message 2 of 5
Creditaddict
Legendary Contributor

Re: Should I Tranfer Or Not?

even at 3% bt fee, going from 10% - 0% it will pay to do it.
and it should be a wash on your credit because you currently have that debt and it is going down each month you make your payments.
Message 3 of 5
Anonymous
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Re: Should I Tranfer Or Not?

Is this right?
Card A: $5,900 at 8.99%

Card B: $22,000 at 9.99%

 

You want to move the 5,900/card A to card B with the 22,000? You will have 22k at 9.99% and 5.9k at 0% and all of your payment will be applied to the 5.9k at 0% first. The larger debt at the higher rate will be trapped until you pay off the 5.9K. It will just sit there growing and growing, at a rate of around $2,000 per year. I would suggest buckling down and paying these things off. Forget about moving the debt around, unless you get a really good offer. Say, a fixed rate for life where the lower rate and transfer fee come out to less that 9%. That is, if you can find a 2.99% for life and 3% transfer fee, you'll effectively be paying 6. Now that would be a good deal..

 

Edited to add- great news to hear you have stopped adding to the cards!! And also, if you're about getting down to one bill, I'd say pay the minimum on the larger balance and apply all the extra money you have to the smaller balance. You'll pay a little more in interest in the long run.

Message Edited by rmily on 10-02-2008 07:32 AM
Message 4 of 5
Anonymous
Not applicable

Re: Should I Tranfer Or Not?

Thanks to all that replied. I wish I had read the reply sooner because I  have already transferred the balance. However I will be paying anywhere from $600-$800 dollars a month so hopefully it will not affect me too much. Hopefully that $5900 will be paid off in 6-10 months. Thanks again everyone!
Message 5 of 5
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