4.99% Apr Vs 1.99% APR - help needed

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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4.99% Apr Vs 1.99% APR - help needed

Postby codeweb » Tue Aug 11, 2009 7:02 pm

Hoping some one can assist me in making a decision.

I have an outstanding balance of 15K on my mastercard — however I have double that in savings.

Current Rate — 4.99% valid till January 2010
Offered Rate — 1.99% valid till September 2011 max transfer fee of $99

Was wondering if this makes sense to pay this off with the cash I have and deposit a check into my account and owe this money at 1.99% - the reason I want to have this liquid money available in case I loose my job (possibility in this market)


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Mogul of Pineapples
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Postby Mogul of Pineapples » Wed Aug 12, 2009 1:04 pm

The 1.99% balance transfers until Sept 11 sounds good to me. Who is offering that?

If you did 15k at that amount and add in the $99 B.T. fee that's like getting the money at around 2.5% per year for 2 years. But you need to be careful about the credit line. How much is the total available line of credit? Typically you never want a balance to be more than 30% of your limit because otherwise it's bad for your credit score. So that would mean on a 15k balance you would need a limit of around 50k.
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