Please help me navigate the world of 0% cards!
January 7, 2013 8:28 AM Subscribe
I want to transfer some of my credit card debt to a zero percent card. But which card? And how much? And is this really a good idea?
posted by ablazingsaddle to Work & Money (21 answers total) 6 users marked this as a favorite
After a financially shitty December - but isn't everyone's? - I'm really more determined than ever to make a serious dent in my credit card debt. I have one moderate interest card and one high interest card with roughly the same balance. (~$2,300 on the lower interest card, ~2,400 on the higher interest card).
I have been looking into transferring at least some of that to a zero percent card. But how much? Which card? Argghhh!
I know that there are cards with no balance transfer fees, and there are cards with no penalty rates, but there are no cards with no penalty rates and no balance transfer fees. I'm torn between applying for the Chase Slate card (0% APR for 15 months, no balance transfer fee) and the Citi Simplicity card (0% APR for 18months, no late fees, no penalty rates, 3% balance transfer fee). The latter seems like a better choice, but a $100 balance transfer fee if I transfer $3,000 seems like a lot of money.
If I use the Slate card, I can pay off the higher interest card in 15 months paying $160/month. However, I would only be able to pay the minimum on the other card on top of that. If I use the Simplicity card, I can pay off more debt ($3,000) at $166/month, but I'll have spent $100 on a balance transfer, and that seems like a real chunk of change. (I can narrowly afford these monthly payments).
Advice? Warnings? I'm leaning toward the no balance transfer fee card, but if there's anything crucial that I'm missing, please let me know. This is all very confusing. My other get-out-of-debt scheme is egg donation (which I sort of want to do for other reasons), but that is probably on hold for right now.
I'm pretty confident I will qualify for at least one of these cards. When I last checked my credit score, it was in the mid-700's for whatever reason.
DISCLAIMER: No lectures from the MeFi Financial Shame Squad, please.