Balance Transfers?

[Anonymous]

Hey everyone I am not really huge on credit hence why I am not to sure about this. It's more of advise than anything. I have a card that is now charging me 26.99% since I was late by two days two months ago. Originally it was my first card at 21%. Regardless of this I would really like to get a lower rate. I am thinking of applying for a new card since it has bee over two years since I applied for any credit. And my score could use more on its report anyway. My issue though is that the card has about 6,300 on it.

Time for the questions. Would it be a problem to get accepted for a limit like that? Also, are balance transfers worth it? I see allot of offers for "No balance transfer fees for 6 months and 0% apr for 12 months on balance transfers" Then I read the fine print and it says after the teaser time it will convert back to the original APR. Does that mean I would need to get a card with less than a APR of 26.99% to come out on top? This stuff is mad confusing but I know if I had a lower rate I would save tons of money.

[cobaltnv]

Hi Dako, welcome to the forums. I will start with your last couple of questions.

Are balance transfers worth it?  The answer, of course, depends on the individual situation. How long do you expect it to take for you to pay off the $6300? You are currently paying ~$140/month interest and it will take you two years to pay it off at ~$342/month. At 0% it would take you 18 months to pay it off ($350/month). With your current interest rate you would likely come out on top with a balance transfer irrespective of the APR on a new card. I say this because your current APR is really high and any new card with probably have a much lower APR. 

Keep in mind that you do not want to use a card you have made a BT to for purchases as the ccc will apply your payment to your low interest debt first. This means new purchases will be charged interest at your APR until the balance is payed off. I probably do not need to tell you this, but the biggest thing is to never, ever, ever be late!

It is difficult to answer your first question about getting a high enough credit limit on a new card without additional information. What do your credit reports look like (average age of accounts, oldest account, number of credit cards--with limits and balances, any lates reported, other baddies)? What are you current Fico scores?

Cheers 

[Anonymous]

The fico score is 600, Trans union is 652 and the other I am not to sure about. Not great I know but its because of an error on my credit report which I found. It has my moms Amex listed under me. Which has a gigantic balance. And they are about to declare bankruptcy I think. I am hoping to get that solved then as soon as I see the result of the credit change I might just apply for a new card.

My oldest account is 7 years old never late once its an amex I have in my name and its a gold open. This one I want to transfer from I was late once on last month because I was moving and didnt get it out in the mail in time it has a 10k limit. My average account age is 3 years. Another card I have a MC is 3,700 but I only have 1k on it which I pay double the minimum every month.

I know its not impossible to get a credit limit for that amount at least it used to be not impossible but with the credit crunch I dont want to apply for a card and it end up being worthless.

[Anonymous]

Did you try calling the CC company you were late on last month and asking for a gw removal of late? I just did this with my mortgage company, I pay online and normally set it up right after the new bill generates but totally forgot this month..until I went in to set up next months payment. I called and they removed it. Worth a shot.

[Anonymous]

No I havent. Didnt know you can call and just have it removed. Thought with credit companies its late its late end of story. What exactly is a gw removal?