Getting rid of high interest Credit Card or the Card with lower prom rate that expires soon.?

Question

I have 2 Credit Card (CC), one has APR 0f 0% till Nov 2007 (teaser rate) after the the interest rate goes upto 12% and the other loan I have is for larger $$$ amount with 16% APR ... I have got some saving, should I try to pay off the 0% APR by Nov, which if I try I can before my 12% kicks in .. or should I put my savings toward the high interest loan ... which is going to take some time before I can pay it off even if I put in my saving there ...

Answer 1

Credit card companies are competing for your business. They are using big incentives to get your attention. Even those with bad credit are being targeted. With all these credit card offers how do you find the best cards? These tips will guide you pass the pitfalls and into the ideal credit card.

Tip One — Compare multiple offers at once

If you're like me you get hundreds of credit card offers in the mail every year. Each of the envelopes is designed to make you want to open them. They splash their offering on the outside or invite you too look deeper into what they have for you. At first glance some of the offerings sound really good. They offer free interest, bonus points, gift certificates, and cash back. No matter how good the offer sounds you don't know how good it is until you've compared multiple offers against each other. There are multiple items that need to be considered at the same time to get the whole picture. So as a general rule of thumb: don't sign up for the first offer that comes your way.

Tip Two — Look for hidden fees and penalties

One trick credit card companies have started doing is revoking benefits if you are late with a payment with ANY creditor. Even though you have a perfect record with them they can still take away the free interest and other perks if your credit score changes. A dirty trick? Yes, so look for that in the fine print.

The other little trick is asking if you want extra protection for your credit cards. They've really ramped up the efforts to get you to spent and extra dollar or two for every hundred you have on your balance. They get an extra 1-2% every month without lending any more money. In some cases it might make sense to get extra protection but just realize that your APR is going to be much higher as a result. Get all information about credit card at: http://www.credit-card-gallery.com/article/121,Finding_the_Best_Credit_Cards

Answer 2

Definitely put money towards the loan first! If it has a higher interest rate-- you're better off paying it down vs. paying off your 0% credit card before the teaser rate is over. Even though you can't payoff the loan completely, you'll still be reducing the balance and the interest charges (which are higher). When the teaser rate is over on your credit card, you'll only be paying 12% vs. 16%.

You might also consider transferring your credit card balance to another 0% APR credit card. Although switching credit cards on a regular basis may have a slightly negative impact on your credit score (in the short-term)-- if you're aren't taking out a mortgage (or other BIG loan) soon-- you shouldn't worry about it too much. You can find a complete list here:

http://www.asapcreditcard.com/0-apr.html

Hope this helps. GOOD LUCK!

Answer 3

Pay off the higher rate loan and pay as much as you can on the lower rate loan. When the lower rate changes to a higher rate, then pay that off.

Beware of get rich sites. Research them very carefully.