0% credit cards

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I am thinking about getting one to transfer my current card's balance onto so I can pay it off sooner. My current card has a fairly low fixed rate (9.9%), but I'd be able to pay off my debt sooner with a 0% card. Is there anything I need to look out for?
 
I assume it's a 0% APR for some short term like 12 months? And is the balance transfer rate also 0%?
 
They charge typically to transfer in a balance. Life happens and emergencies but 10% interest is crazy for everyday purchases.

The interest rate if you miss a payment is very steep and sometimes applied for two months. A work pay check bounced due to a stop payment and cost my company I work for $300 in late fees, penalties and back interest they covered. $150 of it was credit card related.
 
The Citibank card I looked up has no annual fee, and is 0% for purchases and balance transfers, good for 21 months. The only fee I saw was for 3% on a balance transfer. I'm looking the diamond preferred card...

https://citicards.citi.com/usc/dual/value/dc/dp/2017/December/PS/A/default.htm?m=93BF111111W&cmp=KNC~01~110901~CRDACQXX~Google&BT_TX=1&ProspectID=56EFEE3CAB76474F801DDA237DE33758
 
Originally Posted By: skyactiv
How much do you have on your credit card(s)?


$10K on one card.
 
Originally Posted By: blupupher
Yup, be aware of the fine print, it may be a 0% on purchases, but balance transfers may be different.


Purchases are usually higher priced,
but since balance transfers are "big money" for them in one shot,
the balance transfers can be a big money saver.
Have to do the math, though...
 
Originally Posted By: grampi
The Citibank card I looked up has no annual fee, and is 0% for purchases and balance transfers, good for 21 months. The only fee I saw was for 3% on a balance transfer. I'm looking the diamond preferred card...

https://citicards.citi.com/usc/dual/value/dc/dp/2017/December/PS/A/default.htm?m=93BF111111W&cmp=KNC~01~110901~CRDACQXX~Google&BT_TX=1&ProspectID=56EFEE3CAB76474F801DDA237DE33758


Sounds like the way to go! I paid my car off with one a while back and it worked out great.
 
Originally Posted By: Mr Nice
Why not just pay off the entire balance ?


Not everyone has good credit skills in life or emergencies happen. $10k!!!! @ 10% interest
crazy.gif
 
Originally Posted By: Mr Nice
Why not just pay off the entire balance ?


I don't quite understand your question. Obviously, if I had $10K lying around I would do just that, but like most people with credit card balances, I can only pay so much a month. I will be paying $500 a month, though I might able to squeeze out $600 a month, and my total amount paid would be less if I had 0% interest...
 
Originally Posted By: Saul
The very best Balance transfer 0% card is the Chase Slate.


Do you have the term details?
 
Originally Posted By: dishdude
Originally Posted By: grampi
The Citibank card I looked up has no annual fee, and is 0% for purchases and balance transfers, good for 21 months. The only fee I saw was for 3% on a balance transfer. I'm looking the diamond preferred card...

https://citicards.citi.com/usc/dual/value/dc/dp/2017/December/PS/A/default.htm?m=93BF111111W&cmp=KNC~01~110901~CRDACQXX~Google&BT_TX=1&ProspectID=56EFEE3CAB76474F801DDA237DE33758


Sounds like the way to go! I paid my car off with one a while back and it worked out great.


I don't see any down sides to it, other than having to pay the 3% balance transfer fee, which is still less than the interest I'd pay on my 9.9% card...
 
Originally Posted By: grampi

I don't see any down sides to it, other than having to pay the 3% balance transfer fee, which is still less than the interest I'd pay on my 9.9% card...


I did this back in 2006ish? They were marketing these heavily back then. iirc, the gotcha is if you use the card for anything else, it accrues interest and any payments you make go towards the 0% balance. So obviously you don't use the card!
 
Originally Posted By: dishdude
Originally Posted By: grampi

I don't see any down sides to it, other than having to pay the 3% balance transfer fee, which is still less than the interest I'd pay on my 9.9% card...


I did this back in 2006ish? They were marketing these heavily back then. iirc, the gotcha is if you use the card for anything else, it accrues interest and any payments you make go towards the 0% balance. So obviously you don't use the card!


It looks like the Citibank card is 0% for purchases as well, but I don't plan on making any more purchases while I'm paying off the balance...
 
It works well back when I was younger I would do the same.
I still do for big purchases. It's free money. Things get out of hand, you get a balance you can't pay off or you make a big purchase. It's free money. Sometimes there is a transfer fee usually 3%. I just saw one for PNC Bank at 1% transfer fee but if your getting a new card it's usually free.
 
Originally Posted By: grampi
I am thinking about getting one to transfer my current card's balance onto so I can pay it off sooner. My current card has a fairly low fixed rate (9.9%), but I'd be able to pay off my debt sooner with a 0% card. Is there anything I need to look out for?


Here is the way I see it, in rough numbers.
Lets say you planned on taking that 0% offer, there is a 3% fee and I am assuming that is good for 12 months no interest.
$10,000 at 3% fee = 300.00

If you do nothing and pay off your current card debt of $10,000 in the same 12 months the payment is $879.00 a month.
$10,000 at 10% interest = $550.00

You save $250.00 by taking the interest free offer if you pay it off before the interest free period ends but if you dont pay it off during the interest free period, you then get whacked with the full interest of the original transfer dating back to the day the transfer took place.

So that is $300 PLUS a full years interest on the FULL amount of the transfer, you will end up close to $1000.00 in interest If the rate is as low as your current card PLUS another $300 for the original fee = $1,300 total cost if you dont pay it in full before the free period ends.



Me personally, I would just focus on paying the current card off ASAP, take my lumps for $250 and say lesson learned with credit card debt, instead of opening another line of credit.
Not only that, but stuff happens and if you dont clear up that so called free interest offer you will pay DEARLY then if you just kept paying your current card.

Hope this helps, Happy New Year!
 
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