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Here is my upcoming dilemma:
My 0% Discover card changes to 20% intrest on August 25th. I currently have a $3100 balance on the card, but expect the balance to be about $1500 by mid August.
Now a few things about me:
1. I initially opened up the 0% card to transfer a $1900 balance and pay it off in a year. Look what happened.
2. I am HOPING to buy a house this year. I have all my ducks in a row, 20% to put down and am taking my time to find the right place at the right time. I give it a 75% chance that I WILL buy a place by next summer.
3. I have an upcoming wedding that I am paying for on my own, and partially with an inheritance. The wedding is in 3 months and after all is paid and done, will put me in debt about $8,000 but I expect that money to be recouped from monetary gifts. (I know it is tacky to say that.)
4. I have excellent credit, last time I checked it was 754
Questions:
Should I-
1. Open a NEW 0% balance card, transfer the balance and charge the upcoming wedding expenses?
2. Pay off the 0% balance card at the higher intrest rate (I predict it would take me 2 months to pay off $1500), and charge the upcoming wedding expenses to my lower intrest rate Visa (12% intrest).
3. Is there a way I can call Discover and negotiate the intrest rate down to below 12%? I tried to negotiate with Visa one time 2 yrs ago and they told me I am getting the lowest rate they offer. I doubt that, but am a poor poor negotiator.
I worry that opening a new 0% card will cause me to charge it up as I did the first time around. (I'm not proud to say that, but I'm being real here) I worry that opening a new card will lower my credit and cause me to get a higher intrest rate mortgage.
And in closing, to be TOTALLY honest, I am not too sure about this APR stuff. If I have a $1500 balance with 20% intrest rate in month 1, will the balance jump to 1500 + 20% =$1900 balance month 2?? That seems kind of impossible to pay off, and I should have learned all this years ago when I got a credit card, but I was working under the assumption that I was not like everyone else. I could handle a credit card and would pay it off every month.
My 0% Discover card changes to 20% intrest on August 25th. I currently have a $3100 balance on the card, but expect the balance to be about $1500 by mid August.
Now a few things about me:
1. I initially opened up the 0% card to transfer a $1900 balance and pay it off in a year. Look what happened.
2. I am HOPING to buy a house this year. I have all my ducks in a row, 20% to put down and am taking my time to find the right place at the right time. I give it a 75% chance that I WILL buy a place by next summer.
3. I have an upcoming wedding that I am paying for on my own, and partially with an inheritance. The wedding is in 3 months and after all is paid and done, will put me in debt about $8,000 but I expect that money to be recouped from monetary gifts. (I know it is tacky to say that.)
4. I have excellent credit, last time I checked it was 754
Questions:
Should I-
1. Open a NEW 0% balance card, transfer the balance and charge the upcoming wedding expenses?
2. Pay off the 0% balance card at the higher intrest rate (I predict it would take me 2 months to pay off $1500), and charge the upcoming wedding expenses to my lower intrest rate Visa (12% intrest).
3. Is there a way I can call Discover and negotiate the intrest rate down to below 12%? I tried to negotiate with Visa one time 2 yrs ago and they told me I am getting the lowest rate they offer. I doubt that, but am a poor poor negotiator.
I worry that opening a new 0% card will cause me to charge it up as I did the first time around. (I'm not proud to say that, but I'm being real here) I worry that opening a new card will lower my credit and cause me to get a higher intrest rate mortgage.
And in closing, to be TOTALLY honest, I am not too sure about this APR stuff. If I have a $1500 balance with 20% intrest rate in month 1, will the balance jump to 1500 + 20% =$1900 balance month 2?? That seems kind of impossible to pay off, and I should have learned all this years ago when I got a credit card, but I was working under the assumption that I was not like everyone else. I could handle a credit card and would pay it off every month.
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