Seek ASAP answer - Credit Card Transfer / Consolidation?

Question

I asked this a while back and phrased it poorly, so let me try again.

I have a Capital One offer to transfer up to $20K to a fixed APR FOR LIFE at 5.99%. From the 3 cards I carry, they total about $25K total. There is no annual fee, & NO transfer fee which surprises me (since it's typically 3% of the transferred amounts). This sounds like a pretty good deal, with a regular APR of 11.99% on purchases, although I'd plan not to use this card for any other means than to pay it off (feel free to laugh). Since the minimum payment each period is 3% of the total, or about $600 min, it's less than I currently pay in total for the 3 cards, but I would plan to pay $1K per month.

Is this a good idea to do? My offer expires on 10/27.

Does anyone know how to calculate future payments? Say I have a $20K balance at 5.99% APR. I make payment 1 at $1K... how could I calculate my next payment based on the APR & a new pre-APR balance of $19K?

Thanks!!

Answer 1

The trick is, that if you are late ONCE, the interest rate jumps way up. If you are late twice, it can hit what, 30%?

Read the fine print!!!

And remember if they get a payment after 12 noon on Friday, It may not post until Monday.

If you are can pay $1,000 per month, there are other cards out there that will be like 0% for a year. You can pay them all off faster. The first 12 months will reduce the debt from $20,000 to $8,000, then you can transfer it to another 0% card. Even better, see if you can pay $1,667 per month and pay them off in one year.

And then destroy them all, get ONLY 1 credit card ,that you will ALWAYS pay off every month, that gives you cash back for every charge, so that you will make money from using it instead of paying money to use it.

Answer 2

Read thru all that paperwork very carefully. Chances are, there's a requirement to use that credit card a certian number of times per month. So you will be adding new purchases billed at the regular interest rate. You could work around this by only making very small charges.

The real problem may be that the offer is up to 20K but in fact, you may not qualify for the whole amount. This is very common. So you may only be able to transfer a much smaller amount of your credit card balances.

If you do transfer a portion of your current credit card balance to this lower rate, you should make a real effort to get yourself out of debt completely. Make a very strict budget and take every penny you can squeeze out of that budget and put it on the highest interest rate credit card while making minimum payments on the rest,including this new card. When the highest interest rate card is paid off, move to the next till they are all paid in full.

If you put some effort into it, you can probably pay all this debt off in 3 years.

Answer 3

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Answer 4

yeah do it. but make sure you dont miss any payments or you will be subject to a default rate of 25% or more.

Answer 5

Please don't except that offer from capital one because they are too high. Go to amex that have great opportunity when doing credit transfer.