Reply
Frequent Contributor
Scout65
Posts: 352
Registered: ‎12-09-2007

Re: Xferring Installment Loan to 0% APR Citi Card


Watchmann wrote:
The strategy isn't so bad, but the reason the big savings are illusory is because the OP is paying a large part of the debt with money she already has.  You don't need to do a BT to use your own money to pay down part of the debt.  The real savings in this caper has to be calculated on the $3,000 remaining debt at the current loan rate vs. $3,000 at the BT rate for 9 months.  Run that cash flow at the effective interest rates and that will give you an answer that is far less than $500.  More like $100 total savings.

+1

 

Savings is not worth it...

FICOs as of 09/2009 - TU 813, EQ 811, last known EX 797
FICOs as of 08/2009 - TU 791, EQ 809, last known EX 797
FICOs as of 07/2009 - TU 806, EQ 809, last known EX 797
Super Contributor
DI
Posts: 5,767
Registered: ‎01-28-2008

Re: Xferring Installment Loan to 0% APR Citi Card


Scout65 wrote:

Watchmann wrote:
The strategy isn't so bad, but the reason the big savings are illusory is because the OP is paying a large part of the debt with money she already has.  You don't need to do a BT to use your own money to pay down part of the debt.  The real savings in this caper has to be calculated on the $3,000 remaining debt at the current loan rate vs. $3,000 at the BT rate for 9 months.  Run that cash flow at the effective interest rates and that will give you an answer that is far less than $500.  More like $100 total savings.

+1

 

Savings is not worth it...


This may be why I didn't major in math, but I don't see how you all are coming up with only less than $100 in savings.  


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+