I currently have about $15K in student loans at around 8.5% (variable rate). They are private loans, NOT federal. My credit card is offering 4.99% for balance transfers until paid in full. Will it hurt my credit score to move this debt to my credit card? I know that the mix of revolving debt v. term debt is a consideration, but I don't know if it's significant enough to be paying the higher interest. I have 8 years left on my term loan right now (10 year loan).
2007-08-22 08:40:59 · 3 answers · asked by Annette J 4 in Business & Finance ➔ Credit
How much other debt do you have? Are you planning to just pay the minimum payment? Or are you going to throw lots of extra money at that new card to pay it off quickly?
You could probably pay extra on the principal of your current student loan and pay it off sooner. You don't want to transfer to the credit card and drag the debt out for more than two or three years.
Credit card companies increase interest rates when your credit score drops. Putting that much onto a credit card will cause a drop in your score.
Another thing to consider is will they issue a card with a sufficient credit limit?
2007-08-22 10:30:05 · answer #1 · answered by bdancer222 7 · 0⤊ 0⤋
Credit cards are notorious for increasing interest rates. You may think it's 4.99 until paid in full, but read the contract terms. If you're late on one payment they'll push that interest rate up to 20 or 30 percent.
Even if it stays at 4.99 until paid off, I'm not sure I'd do it. Paying the minimum due each month is going to extend the life of the debt and you'll end up paying more money.
Credit card companies are snakes and they will bite.
2007-08-22 08:57:48 · answer #2 · answered by JB 6 · 0⤊ 0⤋
ask ur credit card company & ur student loan company.
2007-08-22 08:50:23 · answer #3 · answered by Anonymous · 0⤊ 1⤋