Getting a second credit card to transfer balance?

Question

I currently have a Visa card with an $800 limit through my bank. After a financial near-disaster a few months ago, I had to basically start from scratch as far as paying it off. I have no problem making at least the minimum payments and have always made my payments on time. However, my current APR is over 27% and over $17 of my monthly payments go to finance charges. 

I'm debating on whether or not to get another credit card and transfer the balances just so I can have the current card paid off and never use it again. I won't cancel the card because I know that will kill my credit score. Is this something I should seriously do?

NotOneOfUs · Accepted Answer

It's a very smart thing to do to open another account with zero finance charges for 6 months, transfer your existing money to that card, and just before the 6 months is up, do it again. This way your avoiding finance charges altogether but you do have to put forth the effort in applying for the cards every 6 months or so.

Anonymous · Answer

if you can, try to cover the minimum monthly payment on your statement + the interest eg: if your current mmp is $20 & the current interest amount is $10.. pay $30. this way $20 is coming off your balance instead of $10

definitely shop around for a low interest credit card with 0% balance transfer. this way you'll just be paying off the balance. some may come with an annual fee, low rate & 0% transfer

try this website & click on the relevant country
http://australia.creditcards.com/

Anonymous · Answer

If you have missed payments on you credit report and/or not a very good credit score, it is unlikely that you will be approved for one of the 0% or low interest credit cards. Applying for one of those cards and being disapproved will only hurt your credit score.

Many banks have quite issuing any unsecured credit cards to people with credit scores below about 700.

wg0z · Answer

your plan makes sense; hope you can find an issuer that will give you a reasonable rate.

you will probably pay a 5% fee to transfer your current balance, so you need an APR of abt 20% or less for the new card to save money overall.

dragonphlame · Answer

Sounds like a good plan. Capital One is offering several cards like what you are looking for. I suggest going into a branch if you are in Texas, Louisana, New York, New Jersey, or Virginia. If not, you will have to go online to capitalone.com.

I have one of their credit cards and have been extremely happy with them.

Good luck!

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Getting a second credit card to transfer balance?

5 Answers