This is embarassing to admit, but one of my credit cards' APR is 33% (long story)! I have signed up for additional cards with 0% balance transfer rates. Any suggestions on how I can better approach this situation? Reducing spending has been implemented.
2007-01-29 11:35:19 · 6 answers · asked by Juse 2 in Business & Finance ➔ Credit
The long story isn't long -- you simply missed one payment on something that you were paying on. Some credit cards will raise your rate to the default level even if the missed payment is to another creditor!
Obviously, you can roll the debt to a home loan, new card, etc. The likelyhood of a new card at zero is not good given the bad credit (I know, only one missed payment).
Pay it off, and resolve to get rid of credit cards entirely. They are evil.
2007-01-29 11:44:29 · answer #1 · answered by geek49203 6 · 1⤊ 0⤋
Definately transfer the balance of that card! Depending on how your credit score looks, there are a lot of options out there. Switching to a new card with a 0% balance transfer APR is a good idea, but in the long run I would look to consolidate all of your credit cards onto a single, lower rate card. Or, if you have a lot of card debt and you own a home, talk to your mortgage company about second mortgage or refinance options. Sometimes those can help too.
Just do your best to keep your credit score as high as possible, and transfer your card debt to the lowest rate you can find. As you already mentioned, reducing your spending is pretty key too :)
2007-01-29 19:42:35 · answer #2 · answered by Jeff S 2 · 0⤊ 0⤋
if the balance is something you can pay off in the next 3 years max, then cut up the card, but don't cancel it because that would ruin your credit more, and begin to pay this card off first with at least triple the amount minimum due each month and sometimes twice a month if u have on line banking. my suggestion to the balance transfer cards are they r just gimmicks to make you think your getting a deal but u are NOT. everyone gets offers in the mail and commercial advertise spend for cash, points, and low APR% for xx amounts of months but the truth is they( Visa, Mas..,Disc...) are only in it for billions of dollars and with your 33% rate get out now before its too late. Or if you know your credit is unrepairable anytime soon stop paying it all together and in 7 or so years it will be wiped clean from your credit.
2007-01-29 19:53:49 · answer #3 · answered by me3 1 · 0⤊ 0⤋
You have a few options. First, if the balance is low simply call and request a lower interest rate and higher credit limit. If they so not simply transfer the balance to a credit card with a lower interest rate and close that account. Depending on what State the card is issued from that rate may simply be illegal, it seems a bit high and I thought the highest was 30, I could be wrong you should definately check it out. If you owe a lot, simply work on paying it off then close the account.
2007-01-29 19:48:17 · answer #4 · answered by Marcella D 2 · 0⤊ 0⤋
Want to get back at those blood suckers? Simple. Pay off your debt in full, on time each month. That way you pay 0% interest, and they have to service your account and you pay nothing for the convenience of the card.
NOTE: Sorry Jeff, but any finacial advisor will tell you that paying a non secured loan,re; credit card) with equity line on your home is financial disaster. Don't do it.
2007-01-29 19:42:10 · answer #5 · answered by Stuka 4 · 0⤊ 0⤋
check out Prosper.com. Consolidate into 1 loan with a lower interest rate. No banks...people to people lending.
2007-01-29 19:39:30 · answer #6 · answered by chattykatty 3 · 0⤊ 0⤋