Applying for credit card

[Anonymous]

I have a high interest credit card and I just received a pre approved offer with 0% until 2010. should I submit this application, trasnfer the balance with high interest to it and close the high interest account?

[JoeBJay20]

That choice is purely a financial one and the decision must be based solely on your situation and goals.  That being said, the interest rate is merely one factor to assess when looking at cards.  Keep in mind that the interest rate only matters if you carry a balance.  You also need to factor in rewards programs, credit limits, the likelyhood and frequency of credit line increases (or credit line decreases for that matter, annual fees, etc, and then decide what is the best card for you.  Also, you need to pay attention to what the rate will reset to after the teaser intro rate expires. 

Message Edited by JoeBJay20 on 06-17-2009 05:03 PM

[Anonymous]

I did not mention that I am carrying a balance and hence the thought of replacing the high interest rate card with a 0% which I will have paid off when the rate goes up to normal levels 12.9%

[JoeBJay20]

No I understood that you were currently carrying a balance.  But what I said before still applies, evaluate both cards completely and make the best financial choice for your situation. 

[Anonymous]

You will probably have to pay a BT fee of 3-5% of the balance you transfer. If after paying this you will still pay less in fees and interest than you are now, then definitely, I would apply for the card with the BT offer.  I would not, however close the high interest rate card necessarily. If this is your oldest card, or you have only 2 cards, you may want to keep it open until you eventually have other TLs. If however, you're paying high annual fees, you may want to go ahead and close it. 

[AndySoCal]

Here is my two cents worth. I agree with what has been said before. It sounds like a good move to make but you are the best judge of that. I would not close the account.  Doing so might hurt your FICO score in the process. The FICO score likes accounts with a long credit history. Keep it and use it every so often an pay the balance in full just keep the account active. You can look at the information on credit scoring on this site for more info.