which BT to accept? amex 0% or discover 1.99%?

[Gina1]

I have a chase 0% balance $3500 about to expire in 3 days; got an amex blue new card offer with BT 0% 12 mo. I also have an existing discover card with a 0% BT for lifetime w/ 3 purchases per mo w/ balance at $3400. what's better-get new amex blue and use the 12 mo 0% or put it on the 1.99% discover BT? the latter will put my new balance at $7000 plus I will be accruing interest on the 1.99% since pmt goes first to 0%. I also know I will be carrying the balance for over six mo. Amex offer looks fab but they seem fickle; plus it's a new credit inquiry which is a hit on my score, and will they punish me for the revolving balance? please advise.

B of A has been sending me offers of $5000 unsecured loan at 6% but I don't trust them they bought countrywide and probably some bad loans, and now they are buying up another bank.

Help.

[Anonymous]

What are your scores right now? My friend was just approved for a Blue, but only got a 500 limit with a 740 Ex and 715 TU. She has 3 late payments that are  a little over 5 years old.

I would take the Discover BT rate. Make the 3 small puchases, and be sure to pay them in full, so the interest doesn't accrue.

Don't accept that BOA loan. Been there, done that, bought the T-shirt. They will start you off at a ridiculously high rate of interest, even with prime scores. They also employ double cycle billing, and tack on so many fees, etc, that you will only be able to make progress paying it off it you are *very* agressive.

[FretlessMayhem]

You might think about getting a new card strictly for the BT balance. I hate to say open a new account, but definitely do not BT to Amex for any reason. Since you have a balance on your Discover card, BT'ing to it will have no effect since you will essentially lose out on the 0 interest.

[Anonymous]

---

@Anonymous wrote:

I would take the Discover BT rate. Make the 3 small puchases, and be sure to pay them in full, so the interest doesn't accrue.

---

Isn't that the trick? Won't any payments be applied to the lower BT rate while the purchases accrue the regular/higher interest rate?

[Anonymous]

• Need to BT $3500.
• 0% BT for lifetime w/ 3 purchases per mo on Discover

       BT transfer fee?

• Has $3400 balance on Discover w/1.99% APR
• Carrying the balance for over six mo

       1.99% for at least 6 mo on $3400 ... estimate $33 of interest.

       PIF the $3500 of BT in over 6 mo?

• I will be accruing interest on the 1.99% since pmt goes first to 0%

       Correct!

• Amex blue new card offer with BT 0% 12 mo

       BT transfer fee?

What is your current credit score?

What is your Discover's CL?

[elsijfdl]

---

@Anonymous wrote:

---

@Anonymous wrote:

I would take the Discover BT rate. Make the 3 small puchases, and be sure to pay them in full, so the interest doesn't accrue.

---

Isn't that the trick? Won't any payments be applied to the lower BT rate while the purchases accrue the regular/higher interest rate?

---

Yes. That is the "trick."

Message Edited by elsijfdl on 10-18-2008 08:43 AM

[Anonymous]

With time quickly winding down, what did you decide to do?

I read an article on smartmoney.com that addresses the 'booby traps' that come with 0% offers that require the cardholder to make purchases. Given that you already have a $3400 balance on your Discover card, all future payments will cover the 0% first and then the purchases. Then, you still have to make 3 monthly purchases. The AMEX offer seems like a better offer to consider. Each and every payment you make will go directly to the reduction of that $3500. Even with a BT fee, you are only looking at $105 with a 3% transaction fee. I know you are probably aware of everything I just said but that is what I would do-transfer the $3500 to AMEX. Good luck in whatever you decide.