Julie in CA Posted June 3, 2009 Share Posted June 3, 2009 I've had the same credit card for years, and it's the only one I've ever had. Recently, I've begun carrying a balance, and am struggling with paying it off. Theoretically I should be able to pay it within the next 4-5 months. Because I never carried much of a balance before, I never paid attention to the interest rate. It is 12.36%. Is that bad? Should I be looking for another card, or just hanging on to the one I have until I pay it off? My intention is to pay the balance, then move to using only my debit card. Quote Link to comment Share on other sites More sharing options...
Unicorn. Posted June 3, 2009 Share Posted June 3, 2009 It's not horrible, but it's not great either. I would call and ask if they would be willing to lower it. Most likely they will. You could always say "Well, company ZYX is offering such and such rate, but I was hoping I wouldn't have to switch..." They don't want to lose your money, so chances are they will be agreeable. hth Quote Link to comment Share on other sites More sharing options...
HiddenJewel Posted June 3, 2009 Share Posted June 3, 2009 It's not a great rate but if you are going to pay it off in the next few months I would just hang on to it. Balance transfers to another card usually carry a fee of 3% of the balance transferred. Quote Link to comment Share on other sites More sharing options...
melissel Posted June 3, 2009 Share Posted June 3, 2009 It's not horrible, but it's not great either. I would call and ask if they would be willing to lower it. Most likely they will. You could always say "Well, company ZYX is offering such and such rate, but I was hoping I wouldn't have to switch..." They don't want to lose your money, so chances are they will be agreeable. hth It's not a great rate but if you are going to pay it off in the next few months I would just hang on to it. Balance transfers to another card usually carry a fee of 3% of the balance transferred. :iagree: Quote Link to comment Share on other sites More sharing options...
Kari C in SC Posted June 3, 2009 Share Posted June 3, 2009 It's not a great rate but if you are going to pay it off in the next few months I would just hang on to it. Balance transfers to another card usually carry a fee of 3% of the balance transferred. Actually, if you google "balance transfer offers" you will find that there are many that do not have a fee. I have never paid interest or fees on any of my balances by only taking 0% no fee offers. We generally don't carry a balance, but do to 1st house not selling and needing to buy a second house - we now have a balance. I haven't paid interest on it the entire time we have had it and will just keep changing it to a 0% no fee card until it is paid off. Quote Link to comment Share on other sites More sharing options...
Julie in CA Posted June 3, 2009 Author Share Posted June 3, 2009 So, is it easy to switch? And do you just take any 0% no-fee that you can find, or is there a difference in the companies' reputations? Quote Link to comment Share on other sites More sharing options...
HiddenJewel Posted June 3, 2009 Share Posted June 3, 2009 Actually, if you google "balance transfer offers" you will find that there are many that do not have a fee. I have never paid interest or fees on any of my balances by only taking 0% no fee offers. We generally don't carry a balance, but do to 1st house not selling and needing to buy a second house - we now have a balance. I haven't paid interest on it the entire time we have had it and will just keep changing it to a 0% no fee card until it is paid off. Yes, this works as long as the 0% offers don't dry up. Quote Link to comment Share on other sites More sharing options...
HiddenJewel Posted June 3, 2009 Share Posted June 3, 2009 So, is it easy to switch? And do you just take any 0% no-fee that you can find, or is there a difference in the companies' reputations? Yes, it is easy to switch. However, there are differences in companies and you would do yourself well to research their reporting reputations, etc. If you take a special offer and have a late payment your rate can shoot up to the penalty rate. Quote Link to comment Share on other sites More sharing options...
Impish Posted June 3, 2009 Share Posted June 3, 2009 I'd call your current company, see if they'll work with you. Transferring may be tempting, but can actually lower your credit score over all, at least thats how I understand it. Better to ask them to lower it, mentioning the other 0% offers, etc. And the 0% is the fee to transfer, not the rate on the money once transferred of course. Their fees on the transferable money could likely be easily be met by your existing creditor. Quote Link to comment Share on other sites More sharing options...
Tree House Academy Posted June 3, 2009 Share Posted June 3, 2009 Yep...I would pay off the balance (call and ask for a lower interest rate and tell them you are thinking of transferring the balance) but keep it on the same card if possible. I had a 6.8% APR on my card and thought THAT was good...until dh got a card with a "$5 per thousand" interest rate! Quote Link to comment Share on other sites More sharing options...
HiddenJewel Posted June 3, 2009 Share Posted June 3, 2009 I'd call your current company, see if they'll work with you. Transferring may be tempting, but can actually lower your credit score over all, at least thats how I understand it. Better to ask them to lower it, mentioning the other 0% offers, etc. And the 0% is the fee to transfer, not the rate on the money once transferred of course. Their fees on the transferable money could likely be easily be met by your existing creditor. There are some offers that are 0% on the money transferred (not just the fee) but they are usually only for a few months. But for the OP, I would just keep this card and not mess with it. Quote Link to comment Share on other sites More sharing options...
Tap Posted June 4, 2009 Share Posted June 4, 2009 Another vote for asking if they will lower the rate. Don't switch cards. If it is only a few months and if the balance isn't too high it won't matter much anyways. Just stick it out and pay it off ASAP. When you call also ask about how they apply your payments. If you pay earlier in the month, will it lower the balance, and thus the interest paid for the next month? If it makes a difference send in payments as soon as you have the money (making sure at least the minimum is paid within each payment cycle). For one thing it gets the money out of your hands and paid on the thing you need the most, and for another you can see a slight interest savings. I would do this before switching the balance to another card. Card hopping isn't great for your credit and the more accounts you have open, the more opportunities there are for identity theft. Also more accounts to deal with if you do have identity theft due to another card/account. Quote Link to comment Share on other sites More sharing options...
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