I have taken advantage of a balance transfer that was offered to me on a credit card that I rarely use. I was offered an interest rate of 1.99% for six months. There is also a 1% transaction fee which I asked if it can be waived. The representative agreed to lower the fee to half so I saved almost $50 just by asking!!! On a total transfer of just under $10,000, I will be saving about $260 over the next six months in interest charges! This is comparing to the interest costs that I would've paid if I had not done the balance transfer. I am aware that having a balance on a credit card close to its credit limit can negatively affect my credit score. In my case, I figured it was okay since I will not be seeking credit in 2012 and I have a good credit score. To me, it is worth it since I can then put my interest cost savings to lower my debt. Every bit counts! I also will make sure to transfer the money back by the end of the promotional end date to avoid paying the regular high credit card interest rates. I can not wait till I am rid of this debt and not have to worry about it any longer.
Do you believe it is a good idea or not to do a balance transfer?
I'm considering doing a balance transfer too. I think it's great if you don't use both of the cards while paying it off, and then cancel one of them. (That's what I'm going to try to do anyway!) :)
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