I'm trying to find a way to cut into credit card debt. Owe about 17000 now. Transferred about 7700 into a card that is 0% until May, 2008. Other 9200 in a card that will just start charging interest. Should I continually look for 0% deals like this? I guess I should. What's the catch, if any? Thank you.
2007-06-22 06:36:37 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
Very good answers. Thanks much. Actually I did get stuck with about a 250 dollar charge when I transferred in money. I didn't know about transfer charges because I've never been stuck with one before. O well, I was paying about 160 in interest per month on that card anyway. Thanks again for the help, folks.
2007-06-22 07:00:04 · update #1
There is no catch, it is a promotional offer to bring in accounts to companies. The deals have no catch whatsoever except you have to pay on time or companies will default your rate to 32%.. most companies now charge transfer fees at around typically 3%.. so it's still profitable for them to offer you these deals.. also if you have 2 cards in the same place you can consolidate the credit line and put the entire balance onto the card.. also some places will bump up your credit limit if you tell them you want to transfer more than the limit gives you.. opening new accounts never hurts you as long as you keep them in good standing.. it also raises your utilization.. anyways good work on looking out.. a lot of people don't pay attention and just pay the interest not knowing they are losing money to finance charges and daily compounding interest.. same thing.. but good luck and don't buy into rumors about credit.. call the card companies up and ask to speak to the credit department.. they will run you by honest policies as they are legally obligated to
2007-06-22 06:52:08 · answer #1 · answered by Anonymous · 1⤊ 0⤋
There are at least 3 possible catches -
1. You will screw up you credit rating.
2. You may find the 0% card charges a transfer fee. If it does, your free credit isn't free.
3. The credit card payment will reduce your ability to make new major purchaes (car, house, etc.).
2007-06-22 06:45:11 · answer #2 · answered by dryheatdave 6 · 0⤊ 1⤋
This might sound like a good idea now, but down the line, this could come back to haunt you.
You look REALLY risky to lenders when they see a bunch of credit cards opened and 'used' for a short period of time. It looks even worse if you close these cards after you're 'finished' with them.
Not to mention that every time you apply for a card, it pulls down your score.
That's the only catch - you are slowing damaging your credit.
2007-06-22 07:11:29 · answer #3 · answered by YSIC 7 · 0⤊ 1⤋
If you are able to continually move your debt into zero percent programs, it makes a lot of sense financially. However, you need to be careful about your credit score applying for too many credit cards and having too many cards. Also have to watch out for them bumping you up to a high rate if you miss a term of the deal, like paying late.
2007-06-22 06:42:23 · answer #4 · answered by rechdxs 2 · 0⤊ 1⤋
No catch - we've been doing it for the last 3 years or so and so far we haven't been turned down. People have been doing this for years and some banks have been turning down people who keep moving cards. The only problem is that you end up with loads of credit cards and have to be very determined not to spend on ones that you have moved away from.
2007-06-22 06:41:20 · answer #5 · answered by Jojotraveller 4 · 1⤊ 1⤋
Make sure there is a not a transefer fee. Pay off your largest card first and then use the monthly payment to payoff your smaller cards
2007-06-22 06:48:26 · answer #6 · answered by kcbrown1979 3 · 0⤊ 1⤋
Tip of the Day: STOP USING YOUR CREDIT CARD!!!
2007-06-22 06:41:14 · answer #7 · answered by Anonymous · 1⤊ 2⤋