credit card debt info...

[oldtimer]

im in the process of paying off some serious credit card debt... i closed off one account like a year ago and they sent me a new credit card today... so i called up to cancel it and then i started talkign to the guy and he said they would pay off my other credit card debt (a few g's) with 0% apr until august... i did the math and it would save me close to 5-600... my question is... will it severely fuck up my credit if i do a balance transfer from one credit card to another???

im late with payments occasionally and shit so i asked him if i fucked up with a monthly payment would they go back to the standard apr rate... he said yes but then he said they could set it up where they take it out of my checking account automatically if id ont pay in time (thus, i woudlnt have any late fees)... so im nto worried about that... the new credit card even has a lower apr rate by almost 6 percent... i really wanna switch the cards but i have a good credit rating and id ont wanna waste it away to save a measley 600 bucks..

i asked a few people but noone ever did it before so i figured id try here... basiaclly im just wondering what is gonna happen to my credit if i do a balance transfer... any help is appreciated... thanks

[jasonmarc]

Transferring a balance to a cheaper credit card -- a tricky money saver

Transferring your credit card balance, or balances, to a lower interest rate card can save you money.

The process is a tricky one -- there are a lot of possible fees, penalties and 'catches' to beware of lest this move actually end up costing you money.

It is also getting harder to do. Credit card companies are trying to stop customers from leaving, and they are also trying not to gain customers who are only there to take advantage of introductory rates before they move on again.

This is one credit card move that absolutely demands you read -- and understand -- all of the fine print. Different card companies handle it in different ways and have a wide range of fine print containing a myriad of rules.

But just because hopping from one card company to another is harder than it used to be doesn't mean you can't do it. There are fewer and fewer super-low teaser rates for balance transfers, but there are low fixed rates offered for balance transfers (that's the card company's way of getting you to bring your balance and stay).

Key numbers

If you do not transfer to a fixed rate (or even if you do because fixed doesn't mean fixed forever) there are three figures of prime importance -- the rate you are getting, how long it lasts and what it jumps to when that rate is over. With a fixed rate you may not know when it will change, but there will at least be a guaranteed period before it can change.

After you have those numbers, check out all of the related costs:

Does either company charge a fee for moving the balance?

Is that fee a flat sum or a percentage?

Does your old card company charge you another fee for terminating your account?

What fees and rates does the new company charge for new customers for new purchases?

Will both card companies notify you when the transfer is done?

Under what circumstances can the new company change the introductory rate it gives you for your balance transfer?

Looking for a better credit card? Check rates in your area.

Beware of 'tiered' arrangements. These will let you transfer a balance and give you some sort of interest amnesty or super low rate for a period, and then there may be another rate or arrangement for some more time, then a third (or even a fourth) rate. The trap here is that you may start with a great arrangement and slowly find your deal getting worse and worse.

Different rates

There may also be different rates for purchases you make with your new card. For example you may transfer with no interest for three months on your transferred balance and any new purchases. Then for three months you may have different, but not too bad, rates for what's left of the balance but a higher rate for new purchases In the third and sometimes fourth tiers both rates could rise to the point where you don't have a good deal any more.

So make sure you know how you intend to pay off your transferred debt.

If you are sure you can pay it off during that interest payment holiday or super teaser rate it may be a good deal. If you're not sure, think again. If you know it won't happen, go to your calculator and work on different scenarios. You may find that if you haven't paid off enough of the transferred balance in, say a year, you're actually moving into a worse deal.

Some card company's limit how much you can transfer or how many times you can transfer a balance. Make sure you use your calculator because the more complex the transfer arrangements the more chances the movement might not be as beneficial as your at first thought.

One thing is surprisingly commonly overlooked in balance transfers -- are there fees? Not only might the new card company charge you, but your old one might charge you a fee for the transfer and even a penalty fee for closing the account. They may also charge you more money to manage any money you leave behind with them if you don't transfer your total balance. Check it out, be sure!

Also be clear just how long the whole process will take, when you stop paying on the old card and start paying on the new. You don't want to find you're paying for a balance in two places at the same time, however briefly.

Make very sure too that you know under what circumstances your new card company can change the rate your transfer is being charged. Sometimes a late payment, or maybe some other obscure transgression, will automatically end your deal and bounce you into a stratospheric rate. Know every circumstance under which they can do this.

Pulled this off website.......Im trying to avoid credit problems myself....hope tis helps...

My suggestion, read the fine print....

[msoprano]

Transferring a balance to a cheaper credit card -- a tricky money saver

Transferring your credit card balance, or balances, to a lower interest rate card can save you money.

The process is a tricky one -- there are a lot of possible fees, penalties and 'catches' to beware of lest this move actually end up costing you money.

It is also getting harder to do. Credit card companies are trying to stop customers from leaving, and they are also trying not to gain customers who are only there to take advantage of introductory rates before they move on again.

This is one credit card move that absolutely demands you read -- and understand -- all of the fine print. Different card companies handle it in different ways and have a wide range of fine print containing a myriad of rules.

But just because hopping from one card company to another is harder than it used to be doesn't mean you can't do it. There are fewer and fewer super-low teaser rates for balance transfers, but there are low fixed rates offered for balance transfers (that's the card company's way of getting you to bring your balance and stay).

Key numbers

If you do not transfer to a fixed rate (or even if you do because fixed doesn't mean fixed forever) there are three figures of prime importance -- the rate you are getting, how long it lasts and what it jumps to when that rate is over. With a fixed rate you may not know when it will change, but there will at least be a guaranteed period before it can change.

After you have those numbers, check out all of the related costs:

Does either company charge a fee for moving the balance?

Is that fee a flat sum or a percentage?

Does your old card company charge you another fee for terminating your account?

What fees and rates does the new company charge for new customers for new purchases?

Will both card companies notify you when the transfer is done?

Under what circumstances can the new company change the introductory rate it gives you for your balance transfer?

Looking for a better credit card? Check rates in your area.

Beware of 'tiered' arrangements. These will let you transfer a balance and give you some sort of interest amnesty or super low rate for a period, and then there may be another rate or arrangement for some more time, then a third (or even a fourth) rate. The trap here is that you may start with a great arrangement and slowly find your deal getting worse and worse.

Different rates

There may also be different rates for purchases you make with your new card. For example you may transfer with no interest for three months on your transferred balance and any new purchases. Then for three months you may have different, but not too bad, rates for what's left of the balance but a higher rate for new purchases In the third and sometimes fourth tiers both rates could rise to the point where you don't have a good deal any more.

So make sure you know how you intend to pay off your transferred debt.

If you are sure you can pay it off during that interest payment holiday or super teaser rate it may be a good deal. If you're not sure, think again. If you know it won't happen, go to your calculator and work on different scenarios. You may find that if you haven't paid off enough of the transferred balance in, say a year, you're actually moving into a worse deal.

Some card company's limit how much you can transfer or how many times you can transfer a balance. Make sure you use your calculator because the more complex the transfer arrangements the more chances the movement might not be as beneficial as your at first thought.

One thing is surprisingly commonly overlooked in balance transfers -- are there fees? Not only might the new card company charge you, but your old one might charge you a fee for the transfer and even a penalty fee for closing the account. They may also charge you more money to manage any money you leave behind with them if you don't transfer your total balance. Check it out, be sure!

Also be clear just how long the whole process will take, when you stop paying on the old card and start paying on the new. You don't want to find you're paying for a balance in two places at the same time, however briefly.

Make very sure too that you know under what circumstances your new card company can change the rate your transfer is being charged. Sometimes a late payment, or maybe some other obscure transgression, will automatically end your deal and bounce you into a stratospheric rate. Know every circumstance under which they can do this.

Pulled this off website.......Im trying to avoid credit problems myself....hope tis helps...

My suggestion, read the fine print....

yea def some solid advice....basically if youve been late with payments before youre credit score is already bad...

get your score from transunion or equifax and see how your score is....

also i just saw on the news last week that credit card companies are now allowed to shoot your rate up even if youre late on an account that has nothing to do with your credit card...messed up ya know

[silverbull]

Hey Dan i wish ya luck in paying everything off eventually.

[oldtimer]

Hey Dan i wish ya luck in paying everything off eventually.

hey thanks buddy... i shouldnt have a problem with paying off my bills for that much longer... i have all the stupid unnecessary gadgets a man can posisbly want so i really have nothing else to piss my money away on except for bills and whatnot..

jasonmarc... thanks for the advice... i talked ot some people at work they do it all the time.. if i like what i see after reading all the fineprint im probably gonna give it a shot... then maybe i'll get aroudn to consolidating my college loans (but that's a whole other headache)

msoprano... i dont think late fees affect your credit all that much.. if it goes unpaid for two billing cycles they will notify collection agencies.. once a collection agency is involved your credit will suffer... i went to buy a car in the spring and i have next to immaculate credit even though back in college i never paid bills on time.. so.. who knows??

[msoprano]

hey thanks buddy... i shouldnt have a problem with paying off my bills for that much longer... i have all the stupid unnecessary gadgets a man can posisbly want so i really have nothing else to piss my money away on except for bills and whatnot..

jasonmarc... thanks for the advice... i talked ot some people at work they do it all the time.. if i like what i see after reading all the fineprint im probably gonna give it a shot... then maybe i'll get aroudn to consolidating my college loans (but that's a whole other headache)

msoprano... i dont think late fees affect your credit all that much.. if it goes unpaid for two billing cycles they will notify collection agencies.. once a collection agency is involved your credit will suffer... i went to buy a car in the spring and i have next to immaculate credit even though back in college i never paid bills on time.. so.. who knows??

you def got a little lucky...ive heard stoires of people having late phone bills on their card from like 15 years ago...lol...