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Need Some Advice

January 2nd, 2018 at 12:02 am

So CC1 is offering a 2.99% APR for balance transfer. I have until March 31, 2018 to make the transfer and then the rate is good until March 31, 2019. After that, the transferred funds will be subject to whatever the variable rate will be at that time.

If I transfer the balance from CC2 to CC1, I have one year to pay off the entire balance, which as it stands now, is just under $20k.

Here is the promotion:
"Lose some rate with an introductory/promotional rate as low as 2.99% APR* on balance transfers through March 31, 2018. Just transfer the balance from a non-VyStar credit card. If you don’t have one yet, apply by phone or at any VyStar branch. The special low rate will apply to qualified balances until March 31, 2019. After that, your standard variable or non-variable APR will apply to any remaining balances. And, of course, there are no annual fees, no transaction fees, and absolutely no inactivity fees. Saving money is sure to make your new year happier."

Here is the small print:
"* APR=Annual Percentage Rate and is current as of January 1, 2018. Introductory/promotional rate is valid on balance transfers from non-VyStar loans/credit cards through March 31, 2018. All loans subject to approval and actual rate may vary and is based on an evaluation of the individual’s credit history. Rate on unpaid balances returns to standard variable or non-variable APR (currently as low as 10.35% - 14.75% APR) on April 1, 2019. Programs, rates and terms are subject to change at any time without notice. Certain restrictions apply. Balance transfers and cash advances do not earn rewards points or cash back. Business and Savings Secured VISA cards are not eligible for this promotion."

If it were you, would you go for this offer?

3 Responses to “Need Some Advice”

  1. creditcardfee Says:

    Yes, I would take this offer because it lowers the interest rate on that $8K on CC2 significantly, even if you don't pay it all off CC1 has the better rate. I assume there is no transfer fee either? I see no transaction fee, not sure if that is the same.

    How will the card apply your payments? Old money before the transferred money?

  2. Trying to get ahead Says:

    In the past, the card did a distributed the payments. I would, naturally, combine both payments into one payment which would be $700 per month. I send payments every two weeks (payday) so I make 26 payments per year.

    Also, My limit on CC1 is $18k and that would leave me with $1,489 left on CC2 after transfer. I am considering two scenarios: 1. Pay off the balance of the $1,489 from my EF. 2. From my EF, pay only $1k, make my normal payments for 3 pay periods to pay off the $489 (before the 3/31 deadline), then transfer the rest before 3/31.

    I like scenario #2 better because I will have CC1 paid down as well so the transfer of CC2's balance will not take me all the way to the max limit.

    Any holes to my logic? Please feel free to poke away! Smile

  3. creditcardfree Says:

    How much do you have in your emergency fund? The longer you have the money at 12.65% interest the more it is going to cost you. So I like the idea of scenario #1. Get as much transferred as possible as soon as possible, even consider contacting CC1 to see if they would increase your limit to accommodate the full amount of CC2.

    I would probably pay minimum on CC1 until I could then pay off CC2. The amount I would take from EF would depend how much I had and how stable my job was.

    I would look for some online credit card payoff calculators. None of them will be perfect plugins for your scenario, but they might help you understand how the interest will compound and how fast you could pay things off.

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