Balance transfer advice - need help!

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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hyun10
 
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Balance transfer advice - need help!

Postby hyun10 » Fri Sep 03, 2010 5:52 pm

I'm a college student with pretty much no credit history.

A month ago, I got my chase +1 credit card with my parent as a co-signer. However, it has a nasty interest rate of 17.54% And I already used about $200 on back to school shopping.
My parents are planning to pay the full balance when they receive their first bill.

Then I got the offer from capital one platinum credit card

"0% introductory APR through your 09/2011 billing period. After that, your apr will be 24.9%"

What got my attention was their "0% introductory APR through your 09/2011 billing period" for transfers [they mean balance transfers, right?]

So I applied and got approved. I'm thinking of doing balance transfer $500 (I'm going to buy a netbook) on my chase +1 to this newly approved card, hopefully i'll be approved for $500 credit line limit or higher.

So what do you guys think? Should I do this?


jeffysdad
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Postby jeffysdad » Sat Sep 04, 2010 9:03 am

Read the fine print. They will charge you a one-time transfer fee of AT LEAST 2%, but these days it's probably more like 4-5%. It is not worth it.

At any rate, you are way too young and new to credit to be dabbling with balance transfers. Let your parents pay off the $200 and save up for the netbook. Do not buy anything with your Chase card that you/your parents can't/won't pay off in full each month.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

hyun10
 
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Joined: Fri Sep 03, 2010 5:27 pm
Location: U.S.

Postby hyun10 » Sat Sep 04, 2010 10:10 am

Even if it's 4-5% transfer fees, isn't this better than 17.54% interest rate on my chase +1

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Mogul of Pineapples
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Postby Mogul of Pineapples » Thu Sep 09, 2010 12:51 am

What got my attention was their "0% introductory APR through your 09/2011 billing period" for transfers [they mean balance transfers, right?]


That's correct, they are talking about balance transfers.

At any rate, you are way too young and new to credit to be dabbling with balance transfers.


I completely agree!

You have barely had a credit card one month and you're already looking for ways to charge up debt. Trust me that will just lead to problems. It might be only a few hundred dollars this time but it can be like an addictive drug, overtime you will be doing it more and more with higher amounts. If you can't convince the parents for the netbook then hold off. As long as you have a laptop it's not absolutely needed for you to get one, at least on credit.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred



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