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Is this ok to do?

Regular Contributor

Re: Is this ok to do?

A few years back I transfered all my debt to 1 card with 0% from 3 cards. None of the other 3 c.c.c's gave a CLD in fact I think I got an automatic CLI shortly after from the 1 c.c.c. due to an aniversry on that card. The biggest advise I can give you on doing this make sure 1. you sock drawer the 2 cards until PIF, 2. If either card has an auto pay such as an easy pass replentish, cell phone bill, etc. to take off of auto pay until card is PIF. Any charges you make to either of these two cards while you have a 0% rate the payment you make will be applied to the 0% rate first and the remaining regular interst rate charge will sit there and accure interest until the promotional period ends or the 0% portion is PIF and then starts to pay on the anual % rate next.
 When I did mine I took the amount I was transfering divided that numeber by the 6 months of 0% rate and that was what I made in my head my minimal payment amount. But like I said I only had it all on 1 card. For you I would pay minimal on one card and pay the difference of that number you came up with to the 2nd card with the lowest ballance. That way you can quickly get 1 card with a high util and the other PIF. As the second card is PIF apply that money to the first card to get it PIF by the end of the 0% promotinal period if possible.
 If you are at 99% util on both cards be extra carefull with both of them. If you send either of these cards to or over the 100% mark your cards COULD come crashing down with your CLD's, OVER LIMIT FEES, 0% promotional rate canceled for default, etc.
Message 11 of 13
Moderator Emerita

Re: Is this ok to do?

If you do have an AmEx, that's definitely grounds for thought, although they will be able to tell that you don't have new debt, you just parked it somewhere else for a while.

I couldn't tell for sure if you have one, but if you do, which card, how long, and what's your usage and payment pattern?

I see the logic in the BT, but I would only move over enough to keep it at 90% or less on each, including the $75 fees, and pay them down frantically fast, at least until I got them at 49% or less. You'd have to still pay a bit of interest on whatever you didn't transfer, but that little 10% cushion could save you.

And as the others said, mark it off on a calendar to have it paid off by the end of the promo period. With some CC's, if you don't pay in full before the 0% is up, they will charge you interest on the original amount, as if you had never paid the rest off at all! Read the agreements carefully, and even then, realize that there might be something hidden in there.

And finally, bury the cards deep in the sock drawer so that you don't accidentally use one for a charge.

Financial benefits beat scoring benefits in cases like this, but you do want to watch out for collateral damage with other companies, as you are doing. Good luck!
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 12 of 13
Valued Contributor

Re: Is this ok to do?

thanks for the response. I will definitely sock drawer these cards. I have an Amex blue card that has a BT on it 3.99%. I will pay this off with the new BT. I always paid the minimum. It is 3.99% for the life of the BT. I've had the card since jan/2007.
Message 13 of 13