Balance xfer?

[Deja Q]

Poll question: Balance xfer?

I just received some coupon checks in the mail -- I can do a credit card transfer and have 3.99% APR until 4/2011.

I have some debt on my other card but the card I got the checks for has $0 on it and I'd have this paid off before 2 years...

It's also a Chase card.

Should I transfer funds?

[MrCoffee]

1. Don't believe the "Introductory APR" lies

Read the fine print...usually the credit card company can (and will) raise the interest rate if the wind changes direction, or if the sun rises in the east.

[Deja Q]

2. 3% charge of the amount to be transferred... and if isn't all paid back by the expiration date,

accrued interest follows, as set to my current APR (12%, fixed).

I also noted 0% APR checks and 3.99% APR checks. Will look at both closely. Even though it's Chase, the lower APR would be rather nice.

As long as my credit rating doesn't take a huge hit, I might do this...

[SacredCow]

3. It's usually not a HUGE hit, but it does make a blip....

If you have a big balance on one card, it will likely be a good thing to do, overall.

BUT.... The previous poster is correct. They can change the terms for pretty much any reason. And if your payment is 0.05 minutes late one time- you can expect the APR to jump to 15% and up.

[LynneSin]

4. Here are some facts (regardless of who is offering it)

There is usually a transfer fee when moving stuff from one credit card to another. However; depending on how much you have to transfer and your current rate, it still should be a savings to move from one to another.

Everytime you open a new credit card (or close another one) your credit score & FICO will be affected. Not a big deal unless you're planning to buy a house or car soon, then it could impact that interest rate and be much more costly in the long run (For 2 years I refused to open a new credit card until I bought my house).

I knew of a person who would do this again and again and again keeping the interest around 0% (at the time it was 0%) because there was always another bank with another great offer. But they were retired and owned their own house so their credit rating didn't really matter.

If you make the transfer figure out the following:

1.) What the transfer fee is
2.) What the new rate is
3.) How long is that rate good until. They really can't tell you what the new rate is until they see some history of you paying off the current balance.

Remember if you are late in one payment, underpay, go over your limit or do anything funny you'll lose the rate and may end up with a rate higher than what you currently have. And when you make your monthly payment - never pay the minimun. Even an extra $5 over the minimum will look better on your credit history and help with the ultimate interest rate you'll get at the end of the cheap period.

Does that help?