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We regularly get offers for big loans with relativly good rates, compared to the credit card. Right now our debt besides the car and house is all on one card at 8. osmething intrest. We have yet another offer of a loan at 6.6 for the first 3 years and 4.4 for the last two. DO any of you think I should look into tranfering the amount? It would mean a fixed amount to pay each month and the smallest loan would be almost 3,000 more than our debt of 7,000.
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Re: Big loan offers
I would say don't do it. I'm assuming the loan would be secured rather than the unsecured debt of the credit cards. I know by your posts that you would have every intention of paying it off, but if something unexpected happened (and things do) you could end up losing your house.
I would look for credit cards where you could transfer the money to a lower interest rate, but be aware of fees in the fine print. -
Re: Big loan offers
I have several offers for 0% transfers, but they are only till october, or whatever it changes but is not long enough for me to pay off 7,000. Plus they have transfer fees, usually about 3%. I asked my question to soon, If I can't afford to pay 300 for the credit card how am I supposed to pay the fixed 300 or so!
Thank you for your reply, it makes sense to me ( a rarity in the financial world
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Re: Big loan offers
Keep this in mind ... the credit card agreements usually have a clause that states "we can change your interest rate at any time..."
So, if you have excellent credit and pay your bills on time, it's probably not an issue. But if you have so-so credit and are late with even just one payment, it could become an issue as more and more credit card companies are raising interest rates if you are late with ANY of your creditors, not just them.
The credit card companies have realized that they can make more money on fees than on interest charges alone and that's exactly what they are doing.
Also, some of those 0% offers are reserved for only those with excellent credit. Read the application carefully and you'll probably find a statement to the effect of "You must qualify for this special offer". In other words, if you don't qualify for the 0% rate, you'll get a higher rate and you won't know until you get your credit card agreement what that rate will be.Comment
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