Credit Cards With Low Apr For Balance Transfers
Should I transfer balance to lower APR card?
I have a credit card that is at 32% interest rate (I know, horrible).
Should I transfer it onto another credit card acct. I have that has a 22% interest rate?
For the first 6 months the interest rate on the transferred amount would be 10% and then it will go up to 22%.
Also, by transferring it, I guess it will close that one account (or should I ask them to? Or should I leave it open?).
The account I can transfer it to will then be within $200 of the credit limit.
SO….
Would you recommend transferring, with all these factors?
I don’t use either of these cards.
They are just old debt from when I made bad decisions.
High APR is on $900 balance.
Low APR is on $500 balance.
Ouch! I would check into that 32% interest rate… there is a maximum interest rate that creditors are allowed to charge, and I thought it was like 31%… I may be wrong but it’s worth checking in to…
I would transfer the balance to the lower interest card, pay as much as you can within this six months, and I would definatley close the high interest account… It sounds like it probably has some deliquent history, and you should never use it again so I would close it.
Be careful to not get anywhere close to being over the limit, then it really gets ugly…
Also, I am pretty sure that when you have a balance transfer like that – you will have to notate with each payment how much of the payment you want to go towards each balance…
For instance, your minimum due is $140 (Like $90 on one balance, and $50 on the other) and you’re able to send in $200. You will notate that you want to pay $100 towards the $900 balance and $100 towards the $500 balance. Also, since the higher balance will be at 10% and the lower balance will be at 22% – you may want to take that into consideration and pay on the higher balanced portion first…
I would almost look into getting a small loan or another credit card for a lesser % to transfer both of those balances too… that interest is insane!
Good luck with that, I hope you’re on your way to becoming debt free – it’s a mean and ugly thing that people never really get properly educated on, then taken advantage of. Personal finance and credit is something that really should be taught in school…
9 Factors To Know With 0 Or Low Apr Credit Card Balance Transfer Offers
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