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APR balance transfers- Does it benefit you financially?

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I'm seeking advice in reference to transferring my 3 credit card balances to one card that has a 12 month introductory 0% APR/Balance Transfers (11%-19% after the 12 months). The card is the Cash Rewards Visa?? Platinum Card. "https://applications.usbank.com/oad/catalog/learnMore.controller?
productId=15&sourceCode=76024"

I have about $7500 in CC debt, and the three cards are all but maxed out. The interest rates are 20%, 15%, and 8% respectively for my three cards, so even the post-introductory rate will be lower than what I have now.

I also want to purchase a home in the next 12 months, so I'm worried about my credit score for both the high debt/credit ratio and opening a new card.

According to an online calculator I could save about $1800 in interest over 12 months, since there is no BT fee if transferred in the application process. I really don't want to open a new card, but it looks like I could save a ton of cash. Is this a good idea?




IMO it is. Your score may suffer a initially ding, but you may see improvement in it within six months time as it would minimise outstanding balance.

Sub: #1 posted on Sat, 01/09/2010 - 14:34

SC SC
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(Posts: 3709 | Credits: 375.58)

and be sure to hammer it hard and pay it off before your 0% rate is over and do not use anymore cards! my mother n law is a accountant and she paid off close to 20,000 in no time by using 0% apr cards just transfering them about every year(when the 0% expired shed find a new 0% card). she swears by it but you must stick to a plan and dont use them anylonger!

Sub: #2 posted on Sun, 01/10/2010 - 01:50

love_my_things love_my_things

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Sub: #3 posted on Tue, 01/19/2010 - 19:17

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I have credit that uses avarage daily balance, during april 07 a 30 days month. I have unpaid balance of $ 445.12 for 18 days and unpaid balance of $ 221.38 for 12 days. calculate avarage daily balance for april 07.

Sub: #4 posted on Sat, 02/06/2010 - 06:27

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Relative owes credit card balance of $4000.00. Was recently contacted by the company. Apparently her interest is 29%. They suggest she make 2 payments of $350 and then $200 a month rather that settle at $2800 which would ruin her credit for 7 yrs. In my attempt to calculate I think I'm doing it wrong, as I keep coming up with monthly interest over $1000. (By my calculations after making $900 in payments her balance would only be down by $320 approximately. What am I doing wrong?
(I just kept multiplying unpaid balance by 29% to add the interest.)

Sub: #5 posted on Wed, 02/10/2010 - 23:43

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When you multiply the balance by 29%, you then need to divide that result by 12. $4000 x 29% = $1160 annual/12 = $97 month interest.

Sub: #6 posted on Thu, 02/11/2010 - 00:22

OZZIE69 OZZIE69

(Posts: 555 | Credits: 92)

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