Credit Card balance transfer question???

Question

I've had this 0% card since Feb '07, and the 0% turns to 11% in Feb '08. I've run up $4,000 on it, my limit is $5,500. I've paid the minimum on time every month. At 0%, I figure there's no point in paying it back before I have to. I'm in grad school and can't work my full time job - I'm on student loans and a peanuts part time job.

I've been getting all kinds of offers for no fee, or low fee, 0% on balance transfers for up to a year (different rates for additional purchases, but I don't plan on using the new card for anymore purchases).

Should I pay off the existing CC before the 0% is over, or transfer the debt to a new card and stay at 0% for another 6 months/year? If possible, please also explain how either option would affect my credit score. (This is the first CC I've ever had; I don't have utility bills in my name currently; I have completely paid off my undergrad student loans that were in my name; I haven't ever had a car loan or mortgage; & I'm 28).

Thanks a lot!

Answer 1

Many people do balance transfer (BT) from one card to another if the balance on the first card isn't likely to be paid by the time the 0% or low interest promo expires.

I would not recommend doing it more than once since your creditors, even those that have nothing to do with these acct's, will notice and may think you are having financial problems and might possibly take adverse action on your existing accounts. Such as, decreasing your credit limits, raising your interest, closure of accounts, etc.
Just because other creditors are not involved with those accounts does not mean that they do not keep an eye on how you treat "all" of your other accounts.

Be sure to read over all of the BT terms and general card terms before applying for any card.

I would not recommend that you keep applying if you are denied. If you are denied once or twice, you would be much better off to stop applying and paying off the existing card before the promo expires.

Right now your existing card is hurting you since you have over utilized it by having a $4k balance on a $5.5k credit limit.
Once it is paid off it should raise your scores.
If you apply for a card to BT to, you will have a ding for the inquiry. If you are approved, since your file is thin, you will have a ding for the new account reporting.
If your new credit limit is similar to what you currently have and you BT the full amount, you will over utilize that account which will also ding your scores.

If you are not planning a major purchase in the next 6-12 months, the dings may not mean much in the grander scale of things. Since in a couple years, as long as you keep both accounts in good standing, your accounts will have more age to them and you will show a positive payment history, which will definately help your scores.

Answer 2

warning: those products of destruction are created by using merchandising and marketing managers that make tens of millions a year by using understanding precisely the thank you to seize you into their jaws. do by no skill think of they are doing "some thing marvelous" for you. in case you do this stability pass. shrink up previous enjoying cards - this could be a ought to. and in no way use the account returned. Make aggressive strikes to pay your new card off in those 18 months or quicker. carrying balances hurts your credit. it might desire to be 0% or ninety 9%. It does no longer rely to the credit. in case you do no longer pay the cardboard in 18 months, you get charged activity on the the rest stability. those enjoying cards many times have severe activity. Why are you even asking? 18 months must be quite some time to pay off to $0. additionally, in case you get this new card do no longer fee any new fees. So... do no longer use the previous ones. and don't fee to the recent ones. or you're requesting self-financial destruction. you would be begging for it. Get a e book on Dave Ramsey sometime. Statistically, those that start up doing what you're approximately to do finally end up in financial disaster. Please evade this. study to stay nicely under your skill as we communicate.

Answer 3

It's not a great idea to transfer the balances between cards unless you have no other way to do it! Yes it will hit you credit score but it won't be too devastating! Pay it off or down if possible.

Answer 4

Yes, pay it off before the interest rate changes and then cancell the card.