Refinance Credit Card to 0%?

**vsjhoc** · 07-30-2007, 08:22 AM

It depends on a few things.

What are the other terms of the 0% card? Most importantly, how long is the 0% rate good for before it zooms up? If it's good only for 12 months from the date of transfer and you can't pay the balance in under 12 months, you're gonna get hit with high interest charges that will make the whole exercise counterproductive.

Are you organized about paying your bills? One late payment on the 0% card and you lose the 0% rate. In fact, a late payment on a different credit card could even cause rate jacking on the 0% card even if it's in good standing. Can you make sure that you'll remember to pay off the card before the rate expires?

**Ima saver** · 09-11-2007, 07:54 AM

If you can transfer without any fees to 0%, I would do it.

**skydivingchic** · 09-11-2007, 01:13 PM

The 0% cards are good if you understand a few things. First, as has been mentioned, it is extremely important to not be late with any payments for the 0% period because they will jack the rate up immediately (on top of any fees and credit damage the late payment would do anyway). Depending on the terms, they may jack up the rate if you are late with any of your credit, not just their card (this is called universal default). Second, if you transfer the balance, either do not charge anything else to the new card or make sure the 0% applies to purchases as well. If you charge something to the new card and the 0% only applies to the BT portion, they will apply payments to the 0% balance first, all the while you are piling interest onto the non-0% balance. Third, figure out if you'll be able to pay off the entire balance during the promo period and if not be ready to do another balance transfer to another 0% card before the promo rate expires. Finally, have you solved/addressed the root cause of the CC debt? If you haven't addressed the spending issues that ran up this debt in the first place, opening up additional lines of credit may not be the best plan.

**n_vizion** · 09-12-2007, 02:06 AM

Transferring the balance to a 0% card is a good thing as long as you can:
1. Pay off before it's due
2. Stop accruing more debt

I pay the minimum on my 0% card and put addtional money in an interest bearing online account. When it comes due I have enough money to pay it off and then some.

**mbhunter** · 09-14-2007, 07:11 PM

There is lots and lots of fine print to 0% offers, and the offers are getting more restricted because folks a heck of a lot more organized than myself make hundreds of dollars per year playing the arbitrage game with $10k+ of the CC company's money. As the CC companies take the fun out of this they make it more difficult for everyone to use these offers to their advantage.

**Tree0164** · 09-15-2007, 04:59 AM

Look for a credit card with a maximize transfer fee of $300 the most. You may not get 0% offers with the amount of debt that you have. You may need to look for 3.9% or so. Are you getting any in the mail currently?

It sounds like you have a good plan to pay it off! Just don't be charging more.

**i-endeavors** · 09-15-2007, 09:14 AM

You can try to transfer as much balance as you can to a 0% initial offering, that allow balance transfers. I would also call your credit card company and tell them you are thinking about transferring your balance to another card and try to negotiate your rate down.

**y26** · 09-15-2007, 10:09 AM

I was going to post a similar question. I just recently transferred $4000.00 0% until april 2008. Now i paid a $120.00 3% transfer fee. Sitting in bed last night i thought. By paying the $120.00 what is the interest rate I'm actually paying??? now my 4000 balance became 4120.00 Just curious on how to figure out the math... I will pay it off by 4/08. Was this even worth it???

I used the money for a repair.

Thanks

**loanstar** · 09-16-2007, 08:57 AM

if the interest free period is big enough then it would be worth tranferring; you'd recover that 3% charge within 3 - 5 months.
you may also consider transferring all of the balances onto one card.

**cptacek** · 09-17-2007, 02:32 PM

seriously?

Originally posted by y26 View Post

By paying the $120.00 what is the interest rate I'm actually paying???

3%

If you could have gotten a different loan for less than 3% or waited and then paid for it in cash, then it was not worth it. If this is the cheapest loan you could get and couldn't pay for it with cash and couldn't wait, then it was the best decision you could make.

**DebbieL** · 09-17-2007, 03:58 PM

I have taken advantage of these credit offers (the best one I've ever had here in Canada was 6 months at 0.9% interest - I made a couple hundred bucks on $12,500 on that one). I've never had one that charged for a balance transfer. I would seriously have to do the math on one of those before I committed to it.

Refinance Credit Card to 0%?