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Transferring a Balance Opinion

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JPeanut503
Frequent Contributor

Transferring a Balance Opinion

So my hubby was recently approved for a Barclay Card with an $1800 CL, and is offering 0% balance transfer for 6 months. I was thinking this might be a good time to get rid of one of his high interest credit cards. This is what he has:

 

Credit One - Opened 2/2013 (I am an AU on this account)

$450 CL

$400 Balance

No Lates

 

First Premier - Opened 2/2013

$700 CL

$533 Balance

No Lates

 

My first thought would be the Credit One. Since both of them are the same age, since it has the lower balance it might be nice to just be done with that one. My concern is that they are such recent cards and I believe I read on here somewhere to keep cards open for at least 2 years. Would it be good to transfer the balance and then keep the card open with a zero balance?

 

I am open to suggestions. Thanks in advance!

 

 


Beginning myfico score watch 608 (4/4/14)
EQ 652 (9/17/14) myfico
TU 641 (9/17/14) myfico
EX 671 (9/17/14) myfico
**Goal Score: 700 across the board
Message 1 of 7
6 REPLIES 6
gdale6
Moderator Emeritus

Re: Transferring a Balance Opinion

I would only transfer the balance if the cost of carrying the balance on the new card is less than it would be on the card it currently sits over the 6 month period, dont forget there maybe a balance transfer fee that must be figured into costs, this fee is typically due and payable on the first payment to the new credit card company.

Message 2 of 7
JPeanut503
Frequent Contributor

Re: Transferring a Balance Opinion

I woudl be a 3% transfer fee and then 0% Introductory APR until 12/08/14. I thought we could pay off the $400 by then.


Beginning myfico score watch 608 (4/4/14)
EQ 652 (9/17/14) myfico
TU 641 (9/17/14) myfico
EX 671 (9/17/14) myfico
**Goal Score: 700 across the board
Message 3 of 7
gdale6
Moderator Emeritus

Re: Transferring a Balance Opinion


@JPeanut503 wrote:

I woudl be a 3% transfer fee and then 0% Introductory APR until 12/08/14. I thought we could pay off the $400 by then.


Ok then the total charge would be $12 for 6 months at 0%, if this is less than what the interest charges would be on the card that the balance is on now then I would say do the transfer.

Message 4 of 7
JPeanut503
Frequent Contributor

Re: Transferring a Balance Opinion


@gdale6 wrote:

@JPeanut503 wrote:

I woudl be a 3% transfer fee and then 0% Introductory APR until 12/08/14. I thought we could pay off the $400 by then.


Ok then the total charge would be $12 for 6 months at 0%, if this is less than what the interest charges would be on the card that the balance is on now then I would say do the transfer.


The Monthly Periodic Rate is 1.992% and the APR is 23.9% on the Credit One card.


Beginning myfico score watch 608 (4/4/14)
EQ 652 (9/17/14) myfico
TU 641 (9/17/14) myfico
EX 671 (9/17/14) myfico
**Goal Score: 700 across the board
Message 5 of 7
buildafico
Frequent Contributor

Re: Transferring a Balance Opinion

That FP card has to be pushing the 30% apr mark, right? I'd get rid of that
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Message 6 of 7
JPeanut503
Frequent Contributor

Re: Transferring a Balance Opinion


@buildafico wrote:
That FP card has to be pushing the 30% apr mark, right? I'd get rid of that

Yes it is at 36%; but it carries a higher limit and would help utli more. Right?


Beginning myfico score watch 608 (4/4/14)
EQ 652 (9/17/14) myfico
TU 641 (9/17/14) myfico
EX 671 (9/17/14) myfico
**Goal Score: 700 across the board
Message 7 of 7
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