Submitted by IndexBot t3_zzbcyz in personalfinance
couldntquite t1_j2fawc1 wrote
Does anyone here have direct experience using a 0% APR card for balance transfers? I am looking at the Discover It Balance credit card.
Here is my situation and thought process: I have a higher than normal credit card balance. I have plenty of cash on hand, more than ten times this balance. But I am thinking of just transferring the balance over at zero % for 18 months and then paying it off in full. I’d continue then paying off the cards I normally do in full each month, and planning to wipe out the transferred balance with a lump payment from A savings account before the interest begins to start (appx 15-17 months from transfer).
Does this make sense to do? Am I missing anything or failing to consider anything?
But I am unsure on the following:
- How will my existing credit card issuers going to view this, or do they care at all?
- How does the transfer work? Is it as simple as giving the info where the balances reside to the new creditor?
- How would this impact my credit score? I am assuming a ding for a hard pull, but potentially increasing my overall credit limit and having a Marginal impact?
- Am I missing any considerations that would possibly dissuade me from pursuing this course?
Thank you.
meamemg t1_j2fby7o wrote
- Won't generally care
- Usually they give you a check that you write and mail to the old credit card, but some can do it online now.
- Same as any new credit card: hard inquiry plus lowers average age of account. Also will increase your utilization while you have the credit card balance.
- Usually there is a fee for doing a balance transfer. How much is this ones? Also, you will still have to make minimum payments on the card even while at 0%APR
couldntquite t1_j2femmh wrote
Thank you. I missed the huge transfer fee…
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