So tempted!

[Anonymous]

I have a Chase card that is my oldest account (started as a Providian subprime). I paid it off completely once I had a Discover card, then they reduced my credit line and I got nervous they would close it. I charged a sewing machine on it and after a few months of recieving new card offers from CHase with better rates asked them to reduce mine. They refused so I paid it to zero again and haven't used it since. They keep sending me checks encouraging me to balance transfer, which I have ignored. Well they keep getting better and better. So today I get a notice they have increased my credit line by 4,000 and a new offer. 1% transaction fee and 0% APR until 6/2012 or 1.99% until 12/2012. I really need to get my util down to the under 10% level (at 29-30%) right now. The 2 cards I have any balances on are Gap (few hundred bucks) and my Discover has a 14.9% APR and a 9,400 balance. I am paying about 120/month in interest right now so the 100 bucks I would pay in transfer fees would be more than made up. I shouldn't hurt my score at all right? To pay 2 balances down to zero and just transfer my total util. to a different card. I could get it paid down to under 10% by 12/2012.

[Uborrow-Upay]

Hi, swan771!

How much of that balance do you realistically think you can pay off by June 2012?  If you can make a substantial dent in that balance at 0% (plus the upfront 1% fee on the whole nut), that would be your best shot.  IMO. 

The trick is, anything left over on that balance after 6/2012 pops back up to the high rate.  Minimize that balance as best you can, otherwise, if you take the 1.99% deal,  you're actually paying the 1.99% on the whole thing for only an extra 6 months on the back end.

Don't worry so much about the score.  Think with your wallet, and do the math.  You'll figure out what works best for you.

Good luck, let us know what you do! 

[slarano]

As already stated above, stop worrying about your score and start saving money. What good is a great credit score if you have no money in your pocket?