A question regarding Balance Transfers…..?
I'm asking this more for information then personal experience.
A person has a high interest car loan ( say ,000) at 8 % APR. But he/she has Excellent credit and receives multiple solicitations from credit card companies with Balance Transfer cards at 0 % APR for 12 month terms. Could the individual transfer the balance to a credit card, continue to make his car payments to that card interest free for a year, and at the end of the 12 month grace period, transfer the remaining balance to another NEW card at 0 % APR for another 12 months ? Will this hurt one's credit score. The way I look at it, a disciplined person, essentially would get 24 months to pay off his vehicle interest free....if his monthly payment was around 0. And saves more than 00 in interest fees.
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Eliminating high interest credit cards by transferring to a card with a lower rate can help you save a great deal of money, allowing you to regain control of your finances. However, it is important that you understand all of the terms and conditions of your new credit card before committing enrollment. You want to make certain that the card offer is fair and that you are truly going to benefit from it. Featured are tips that will help you choose and use the right credit card for transferring balances.
Pre-determining interest rates
Most balance transfer offers are good for only the first 6-9 months of enrollment. At the conclusion of the introductory rate, the card will convert to a more standard rate, typically between 14-20%. It is important that you determine what the interest rate is going to be once the intro rate is over. If you are not sure what interest rate the card is going to be charging at the conclusion of the intro offer, call the issuer and find out.
New purchase interest rates don’t equal the balance transfer rates
The intent of transferring credit card balances is to obtain a lower interest rate and eliminate your debt quicker. It is important to note that the balance transfer interest rate is not going to be the same for new purchases made with the credit card. In fact, new purchase rates are going to be higher. Also, payments that you make towards your credit card bill are going to be applied towards the balance transfer debt first, until they are eliminated. As a result, you are going to end paying a lot of money in interest costs for new purchases. It would be wise for you to pay off all of your balance transfers prior to making any new purchases with your credit card. Get all information about it at: http://www.credit-card-gallery.com/article/173,Credit_Card_Balance_Transfer_Tips
If you ever read the blueprint (tiny text under each balance transfer offer) you will see that balance transfers will cost you more than you think. Nobody gives anything for free, and the only free thing in life is cheese in the mousetrap.
You can transfer balances from one card to another, and the details vary.
You can’t transfer a car loan to a credit card, though, so that’s the end of that question.
The only way you could do this would be to write a check from your credit card company to the lender on your car loan and pay it off.
In theory this is a great idea, but you need to read the fine print on the credit cards and make sure this is allowed.