Is it a good idea to purchase a low interest credit card to pay of a small balance on 2 high interest cards?

Reducing your rate is a good idea but there are a few other things to consider. First keep in mind that your credit score is effected by credit longevity meaning how long your accounts have been open so you may hurt yourself by closing your existing account. You may want to call your current card company and ask them to reduce your rate instead to match the offer that you got from their competitor. Be nice about it but let them know that your considering your options.

Good advice so far about trying to negotiate a lower interest rate. Here's a few more things to know about balance transfers.

Any time you do a balance transfer you get charged a transfer fee. Read the details to see how much you'll be charged by the new credit card company as this could possibly negate any savings you might have with the lower interest rate.

Also, be absolutely sure you understand the terms for the low interest teaser rate. One late payment of even a day can cause you to lose the low rate.

If the low rate is for balance transfers, never use that card for any new purchases until you've paid it off. If you do, the payments you make will go mostly towards the balance on your low rate transfer and your high rate purchase balance will sit around and rack up plenty of finance charges.

The only way getting the low interest card is a good idea is if you seriously work on paying off the balance. Otherwise, you get the new credit card with the higher balance and start running it up like you did the two smaller cards.

Credit card debt is usually easy to get and hard to get rid of.

Credit history, total costs (not just the interest rate) and your repayment term need to be considered when making that decision.

A credit account with a longer relationship and low balance to limit can give you a good credit score. Paying it off for a lower rate would cause your credit score to rise. Some companies base your interest rate on your score so they may offer a rate and then after your credit score rises they raise the rate.

Secondly, if the offer for a low rate is a teaser rate (short low rate period at beginning of account) then you need to look at what the total costs are going to be when you finally pay off the debt. If you plan on paying this back over time the finance charges add up. Once you add in the total finance charges and annual fees you may find it was better with the original card.

Lastly, it is easier and cheaper for a credit card company to retain a good customer than it is to get a new one. Frequently you can contact your current credit card provider and tell them you are considering moving to a lower rate company and want to see if they will lower your rate with the current card. Most Credit Card Companies would be happy to keep you and lower their rate if you are making your payments regularly.

You cann call your credit card company ans ask them to reprice your account coz the longer you keep the account open the better for your credit report, besides, if you've had the same card for a long time, they will consider you a great customer, loyal and faithful and all that and they will have no trouble repricing your account, if you just cannot live with that interest rate anymore then consider transfering your balance to a cheaper card but only as the last resource.

The more credit cards you take out, and the balance transfers you have; the lower your credit score may get. So probably not, just depends in your situation

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