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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:

  1. How will my existing credit card issuers going to view this, or do they care at all?
  2. How does the transfer work? Is it as simple as giving the info where the balances reside to the new creditor?
  3. 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?
  4. Am I missing any considerations that would possibly dissuade me from pursuing this course?

Thank you.

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meamemg t1_j2fby7o wrote

  1. Won't generally care
  2. Usually they give you a check that you write and mail to the old credit card, but some can do it online now.
  3. 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.
  4. 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
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