CC offers--The fine print

[DayByDay]

For those who have transferred debt to a new card with a special introductory rate, have you ever had any problems? Reading the fine print on the offers, which mention extremely high interest rates after a late payment, always keep me from applying. I wonder if I'll somehow get stuck with an even higher interest rate and be unable to switch to something else to get out of it for some reason.

[Tree0164]

Re: CC offers--The fine print

When I was paying off my credit card debt, I did the balance transfer game all the time. As long as you make your payments on time you shouldn't have a problem.

[neatdesign]

Re: CC offers--The fine print

You will be stuck with extremely high interest rates if you default, whether you have an introductory rate or not. If you are proactive about your account maintenance and payments, though, you shouldn't have a problem.

One thing to keep in mind is that 99.9999% of the time, credit card companies will not permit internal balance transfers. In other words, if you get a 0% intro card with MBNA, do not plan on opening another 0% intro rate account with MBNA and transferring it over. You would have to get a card with another company in order to do this.

It's important to read the fine print not only to see what your limitations are with THIS transfer/account, but also what your limitations with be in the future.

~ Jenney

[debtdude]

Re: CC offers--The fine print

Don't let the high APR change scare you off. Unless of course you tend to miss payment dates. The "intro" rates are a great way to reduce your APR. I went from 21% to 0%. Then after the 0% APR ended after a year, I transfered it to a <3% card. I could have re-applied for the next 0% offer in my mailbox but I don't like doing that. Oh, I could but it's just not my cup of tea.

[poundwise]

Re: CC offers--The fine print


You are right to be wary of the fine print, especially that which refers to default rates, however, if you are transferring debt from one card to another, I don't see what difference this would make as I believe you'll find the current card you hold to also have similar fine print. In other words, you aren't opening yourself up to anything new, necessarily.

A couple of issuers specifically state when they will and they won't consider you for the 'default' rate. For example, one issuer states specifically in their terms that they will not raise your rate for a single missed payment in a certain period or two in another timeframe. After that, however, all bets are off. Other issuers aren't so 'generous' and will jump your rate as soon as you make one late payment or exceed your limit. This could be another factor to consider when obtaining a new 0% intro interest card.

Of course, the way to beat this game is to (a) not carry a balance, (b) not have cards, or (c) pay the bill well before the due date and manage your spending/use of the card closely.