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Old 10-30-2006, 08:15 PM
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Default Re: Are 0% Apr Credit Cards a Magic Debt Solution?

Quote:
Originally Posted by neatdesign
I just opened a new account with Discover and transferred the entire balance of one account to it, and about half of another account's balance. It's 0% until next June, but I can extend the 0% by making three purchases each billing period starting in July.

Although the purchases will NOT be at the 0% rate (that's limited to the balance transfers), there is no minimum amount that the three purchases need to be. My plan is to purchase three EXTREMELY cheap items -- like three sticks of gum for 25¢ each -- once per billing cycle. I'll go through the self-checkout line at the grocery store so it will be easier to do the transactions. At most this will add about $2/month to my balance (the three purchases plus the minimum finance charge), which means it will end up costing me far, far less than if I had the BT balance at a higher APR.

~ Jenney
You just took a good plan and ruined it! Find another 0% offer approximately 3 months prior to this one ending, be sure it doesn't have a transfer fee! Don't request your new card just yet. Wait until about 2 days prior to the expiration date of the new 0% offer to see if a better one comes along. If one does not then go ahead and make the transfer, it will take up to 4 weeks to transfer the balance so make sure you give yourself some leeway unless you don't mind a few days of interest.

Don't cancel/close the old card, but hide it or cut it up. The open credit won't hurt your credit score, but could hurt it if you close your acct.
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