OK, weird question, but here we go. So I financed my '05 through Suzuki for $5500 or so after dealer charges and the gear I put on the card. The interest rate is 9.99%, which isn't terrible, and minimum monthly payments are $99, which I can do. But I'm an accountant and know finance, and it doesn't take a math whiz to figure out that I'm basically on an interest-only loan if I pay the minimum, as about $75 goes to interest. I pay $150-$200 a month, but that's not the point of this.
The point is that my credit card has an offer for 1.99% APR for the life of the transferred balance. I have a $3K limit on it. I was thinking about transferring $2500 to that card and save a grip of money on interest there, and try and quickly pay off the Suzuki Financing balance.
So it seems like a no-brainer to do that, but does anyone see a problem with this? I like saving money (who doesn't? :dunno: ), and this would be a better deal for me. Anyone have opinions on this?
Thanks gang,
Dave :cheers:
I did a very similar thing. When I signed up for the Suzuki financing, they wanted $99/month and had 0% for like 6 months, if I remembr. After 6 months, the financing when up to 17.99% :o So a month or so before the 17.99% kicked in, I opened up a credit card account that has a 7% APR, which seemed a lot better to me, and I closed out the one that come from the dealer. That's what I did :thumb:
Quote from: PhaedrusI did a very similar thing. When I signed up for the Suzuki financing, they wanted $99/month and had 0% for like 6 months, if I remembr. After 6 months, the financing when up to 17.99% :o So a month or so before the 17.99% kicked in, I opened up a credit card account that has a 7% APR, which seemed a lot better to me, and I closed out the one that come from the dealer. That's what I did :thumb:
Good deal. So I guess I'll go for it then. I hope there are no negative impacts to my credit. It's nearly 700, which is tres bien. :thumb:
Anyone know of anything negative before I go for it?
Dave :cheers:
I've done that before. It's a perfectly legit balance transfer.
The only downfalls are
-Balance transfer fees.
-Interest rates that jump after an intro period.
Shop around.
You could also refinance it you know... I went from 18.99% to 7% when I did that. (Yeah... I had awful credit on the first loan and better credit when I refinanced).
Quote from: RVertigoYou could also refinance it you know... I went from 18.99% to 7% when I did that. (Yeah... I had awful credit on the first loan and better credit when I refinanced).
He has it on a card not a regular loan... so that is effectively what he is doing...
As long as you can make at least the minimum payment on two cards no problem... do it (the minimum on two cards might be a bit more than paying the same balance on just one card). I would also recommend calling your company and asking about a credit limit increase... that way maybe you can get more/all on that other card at a lower interest rate and possibly have only one payment to worry about remembering to make every month.
By Joves, I didn't even think about that. I got the $3K limit when I was in college, and I was making shaZam! compared to right now. I'm sure they wouldn't mind taking a larger transfer. It equals more interest for them.
Thanks guys,
Dave :cheers:
No prob, I'm a professional debt juggler!!! ;)
I'm an idiot. My credit limit is $2K. And the lady, who was hard to understand by the way, said I can't get a credit limit increase right now. I'll shop around.
Dave :cheers:
Quote from: 2005-GS500-PDXI'm an idiot. My credit limit is $2K. And the lady, who was hard to understand by the way, said I can't get a credit limit increase right now. I'll shop around.
Dave :cheers:
Credit limit is based mostly on credit score and past history. Making more money doesn't help except for things like car and home loans....
Quote from: 2005-GS500-PDXI'm an idiot. My credit limit is $2K. And the lady, who was hard to understand by the way, said I can't get a credit limit increase right now. I'll shop around.
Dave :cheers:
Outsourced customer service is something I deal with every day at work, and it sucks. You can also try asking for the customer retention department. Let them know that you've been offered a credit card with a higher limit and a lower interest rate, and tell them you wanted to give them a chance before you switched, since you've been a good and loyal customer for so many years.
My credit card company dropped my interest rates by 25% to 50%, and they doubled my limits.
If they're not willing to work with a customer, then they don't deserve your business!
I second Pandy's statement about customer retention. I got a Discover Card in college and it had a pretty high rate. A few years later I wanted to cancel it; and they did everything they could do to keep me, including lowering my APR, extending my credit, etc. Worth a shot for you with your CC company too :thumb:
Yup! Worst they can do is say no, and then they lose your business! It costs them more to land a new customer than it does to retain one! :thumb: