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Credit Cards?
Credit Cards?
Is it a good idea to open a credit card to transfer my other credit cards. There is this promotion from bank of america, and i can be eligible for up to 2,000 dollars and interest free for 4 yrs.. I want to transfer my other credit cards so interest wont accrue. Is this a good idea, and will it help my credit score?
Answers:
rookem123: It won't help your credit score...to do that you need to pay off the balance; it doesn't matter if the rate is zero, you are still borrowing the money.
It is probably a good idea though to transfer the balance but before doing so I would check with Bank of America because sometimes their are fees to transfer balances, and those could add up to more than the interest you would pay if you kept your other cards (assuming you have low balances).
So, call and find out the fees, if they are low or free, then yes, I would switch but then make sure to pay off your card as soon as you can...don't let the zero percent fool you because usually if you buy something during the zero percent period and then don't pay it off before the 4 years is up, you are charged interest on it from the date of purchase, not just from the 4 year mark; so I would also ask for details about that.
2008-03-05 09:32:53
It is probably a good idea though to transfer the balance but before doing so I would check with Bank of America because sometimes their are fees to transfer balances, and those could add up to more than the interest you would pay if you kept your other cards (assuming you have low balances).
So, call and find out the fees, if they are low or free, then yes, I would switch but then make sure to pay off your card as soon as you can...don't let the zero percent fool you because usually if you buy something during the zero percent period and then don't pay it off before the 4 years is up, you are charged interest on it from the date of purchase, not just from the 4 year mark; so I would also ask for details about that.
2008-03-05 09:32:53
John: Even though there is no interest they might charge you a transfer charge which could be high like $20 plus a percentage of the amount you borrow. Make sure you find this out first. Also, most of the time if you are late with your payment even one day they will start charging you interest.
2008-03-05 09:32:56
2008-03-05 09:32:56
Chosen Answer
XoxoxoxoX: Credit card companies don't do PRE-APPROVAL any more, those are just marketing strategies to lure people to apply for their credit cards. Does it says UP to $2,000 for UP to 4 years? If your credit score is above 800, then most likely that would be true, but I never heard interest free for that long of a period, maybe is for 4 MONTHS only? Anyway, don't keep applying for more credit cards if you try to improve your credit score. But if you are trying to pay off your debts..ask more specific questions...and give more details about your situation, then we can be more of help to you.
2008-03-05 09:34:02
XoxoxoxoX: Credit card companies don't do PRE-APPROVAL any more, those are just marketing strategies to lure people to apply for their credit cards. Does it says UP to $2,000 for UP to 4 years? If your credit score is above 800, then most likely that would be true, but I never heard interest free for that long of a period, maybe is for 4 MONTHS only? Anyway, don't keep applying for more credit cards if you try to improve your credit score. But if you are trying to pay off your debts..ask more specific questions...and give more details about your situation, then we can be more of help to you.
2008-03-05 09:34:02
dwp_ins@verizon.net: The common transfer rate that Bank of America usually offers is 0% for 12 months.
I noticed in your question that you used the phrase "I can be eligible" which makes me believe that unless you have really excellent credit that they are going to end up sending you an alternative card like the 0% for twelve months.You end up receiving a card but it's not what you applied for.
I really hate these kind of promotions. Some credit card companies do this because they know that most people won't cancel the alternative card.
I suggest going to a reliable site like http://www.rightcharge.org unless your credit is really bad you will most likely be able to get any of the cards that they list in their balance transfer section.
Good Luck!
2008-03-08 15:47:06
I noticed in your question that you used the phrase "I can be eligible" which makes me believe that unless you have really excellent credit that they are going to end up sending you an alternative card like the 0% for twelve months.You end up receiving a card but it's not what you applied for.
I really hate these kind of promotions. Some credit card companies do this because they know that most people won't cancel the alternative card.
I suggest going to a reliable site like http://www.rightcharge.org unless your credit is really bad you will most likely be able to get any of the cards that they list in their balance transfer section.
Good Luck!
2008-03-08 15:47:06