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How to transfer the high interest debt most efficiently?

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yevbo23



Joined: 26 Aug 2008
yevbo23's page
Posts: 2



76 Magic Points
Subject: How to transfer the high interest debt most efficiently?
 
 Posted on Thu Aug 28, 2008 10:44 pm  
I have about $19,000 on one credit card, and would love to shift it into 0% or at most 9% credit line, as the APR % there is now 21.99%. Any suggestions? I have tried to apply for 0% balance transfer card (up to 12 months), but so far have been rejected. Any help is greatly appreciated.
 
fireyone



Joined: 26 Feb 2008
fireyone's page
Posts: 2871



2195 Magic Points
 
 Posted on Fri Aug 29, 2008 1:30 am  
Hows your credit Yevbo? Some credit card companies will not take over and transfer a loan if your credit is not in tiptop shape. Have you considered maybe a bank loan or home equity? Anything is better than 21.00% unless its a higher rate than that of course.
 
yevbo23



Joined: 26 Aug 2008
yevbo23's page
Posts: 2



76 Magic Points
Subject: How to transfer the high interest debt most efficiently?
 
 Posted on Fri Aug 29, 2008 1:35 am  
Actually, my score is about 680-700, not too bad! I don't have a home equity to speak of, am renting... How difficult would it be to obtain a bank loan? I don't have much of collateral as well, although I could deposit about $6,000 into a CD and obtain bank loan that way or a credit card with 0% from the same bank...
 
anthony

anthony

Joined: 31 Jul 2006
anthony's page
Posts: 493



12319 Magic Points
 
 Posted on Fri Aug 29, 2008 7:35 am  
Hi yevbo23
There are several credit cards which will help you to consolidate your cc debt into one card with reduced interest rates. Some of them are Discover More card, Citi Platinum Select card, and the blue card from American Express. These cards not only have 0% introductory APR but also have a low regular APR starting from around 7.9% as in Capital one Platinum Prestige card.
_________________
Anthony Marx

A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible.
You can also visit my blog
http://financewatchonline.blogspot.com
 
Mary

Mary

Joined: 06 Jul 2006
Mary's page
Posts: 324



8704 Magic Points
 
 Posted on Fri Aug 29, 2008 8:56 am  
I think if you had your credit score above 700 say at 720, the balance transfer card would have been easy. Most of these balance transfer cards require you to have either a very good or an excellent credit score, which means that the score should be somewhere above 720. Most of these balance transfer cards comes with no annual fees and free online access facilities.
_________________
Where there's a will, there's a way !!
 
fireyone



Joined: 26 Feb 2008
fireyone's page
Posts: 2871



2195 Magic Points
 
 Posted on Fri Aug 29, 2008 1:16 pm  
This sounds like a good option for you. It would get everything paid off alot quicker since you wouldn't have such high interest. Great credit score. I can see you have taken good care of that precious commodity.
 
bowzer girl
Guest
Subject: closing credit cards due to lender raising interest rates
 
 Posted on Sat Aug 30, 2008 3:16 am  
i have closed old accounts no longer used and have read this can have an
adverse affect on my credit score. I also have declined interest rates being raised on some of my cards in which case the lender closes them and i just pay monthly. Do these accounts closed because I don't want my interest rate higher also affect my score
 
anthony

anthony

Joined: 31 Jul 2006
anthony's page
Posts: 493



12319 Magic Points
 
 Posted on Sat Aug 30, 2008 10:43 am  
Hi bowzer
Yes, your credit score may be lowered because of closing your existing accounts. This is because as per FICO credit scoring model, credit history has a major role to play in calculating your score. Once you close down your old accounts, the credit history on these card no longer remains active and so you lose the points that comes from your good credit history. Now since your credit score has decreased, the interest rates may get increased.
_________________
Anthony Marx

A positive attitude is not achieved by turning a blind eye to the negative, but rather by responding to every situation in the most positive way possible.
You can also visit my blog
http://financewatchonline.blogspot.com
 
fireyone



Joined: 26 Feb 2008
fireyone's page
Posts: 2871



2195 Magic Points
 
 Posted on Wed Sep 03, 2008 2:01 am  
Great now I am stuck with cards that will tempt me in hard times. I really wanted to b e rid of these. I have some almost paid off.
 
Justin

Justin

Joined: 17 Jul 2006
Justin's page
Posts: 417



10874 Magic Points
 
 Posted on Wed Sep 03, 2008 4:27 am  
Hi fireyone
If you feel that the cards will put you in hard times, you should better close them if they do not have a good credit history. Since length of the credit history contributes only 15% in your credit score, it will lower your score, but not much. However, you should hold only those cards which will have a good payment history because payment history contributes 35% in your credit score.
_________________
Best Wishes
Justin
 
fireyone



Joined: 26 Feb 2008
fireyone's page
Posts: 2871



2195 Magic Points
 
 Posted on Fri Sep 05, 2008 12:37 am  
All of them have good payment history. The problem is the oldest ones are a couple store credit cards. In the last two years we opened a discover that has always been paid on time and more than the minimum payment being made. I would rather keep that one then the other two. Will this hurt my score?
 
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