Credit Card Help.

[Mistawho]

Okay, i currently have 4,000 dollars in credit card debt on my "one" and only credit card. I recently opened ANOTHER credit card with my bank with 0.0% APR for the first 12 months! woohoo. I transferred all my old credit card debt to my new credit card. I currently am paying 600 bucks a month to finish paying off my credit card. Do you think its a smart idea or no? I would like to hear your thoughts... No annual fee's on both credit cards.

First credit card is a Providian WaMu card. 2nd is a bank of america card.

[mariogreymist]

Okay, i currently have 4,000 dollars in credit card debt on my "one" and only credit card. I recently opened ANOTHER credit card with my bank with 0.0% APR for the first 12 months! woohoo. I transferred all my old credit card debt to my new credit card. I currently am paying 600 bucks a month to finish paying off my credit card. Do you think its a smart idea or no? I would like to hear your thoughts... No annual fee's on both credit cards.

First credit card is a Providian WaMu card. 2nd is a bank of america card.

That depends on your goals and your financial discipline. At 0%, you can make minimum payments up until the day before the rate changes, and put your $600 a month into a savings account where it will bear interest. By paying the money now instead of saving it and paying at the end of your introductory period, you will actually make money on the $4000 you put into savings, knowing full well you are paying that card before paying any interest. Of course, that method requires discipline and a desire to get the most out of your money. $4000 generates income in a savings account whereas a zero-balance on the cc does not.

If you lack the discipline to have that money in the bank for 12 months, pay as you go. Also, if you want to maximize your credit rating, you want balances at or less than 30% on credit cards, so get it to that point (if it's not there already) before paying minimums.

Also, make absolutely certain it's a zero percent interest card and not some kind of deferred interest offer. Make sure to make all the payments and all other cc payments on time, or the rate may suddenly spike.

[Mistawho]

That depends on your goals and your financial discipline. At 0%, you can make minimum payments up until the day before the rate changes, and put your $600 a month into a savings account where it will bear interest. By paying the money now instead of saving it and paying at the end of your introductory period, you will actually make money on the $4000 you put into savings, knowing full well you are paying that card before paying any interest. Of course, that method requires discipline and a desire to get the most out of your money. $4000 generates income in a savings account whereas a zero-balance on the cc does not.

If you lack the discipline to have that money in the bank for 12 months, pay as you go. Also, if you want to maximize your credit rating, you want balances at or less than 30% on credit cards, so get it to that point (if it's not there already) before paying minimums.

Also, make absolutely certain it's a zero percent interest card and not some kind of deferred interest offer. Make sure to make all the payments and all other cc payments on time, or the rate may suddenly spike.

Great idea, i will do that!!

[simpleyme]

pay it off as soon as you can based on the fact that you ran up 4K on the one and only card

[Ingtar17]

If you are going to try the bank interest method, I suggest opening a separate account for it and you must ABSOLUTELY not touch it for the duration of your plan (until you use it to pay off the CC right before the 0% incentive ends). That way, you will hopefully not even think about spending it. You might feel richer than you are if you keep the money in your main account.