I just received an offer from one of my credit cards to get 0% interest on balance transfers up til July 2008 an then 6.99 fixed interest rate for the life of the balance. This will save me quite a bit in interest because the cards that I will be transferring from have significantly higher interest rates than this one.
In order to take advantage of this offer I need to have all the balances transferred by March 9th. This is a fabulous opportunity for me to get some lower interest even though there is a 3% transfer fee associated with this offer.
The negative thing is that I only have $200 available credit on this card because it is my lowest interest card and I had used it earlier to take advantage of a similar offer.
So I decided to call up the company and ask for a credit limit increase and I also explained to them why I wanted the increase. I went on and on about how this is my best card (it really is) in terms of being easy to use and having a low rate.
I explained that I was not using the limit increase to go shopping but rather to consolidate my credit cards to make my finances more manageable. Hey it worked one time before so I hope it works again.
I have been really good with this card…..as with all the others in terms of making my payments on time and I make more than the minimum payments.
I hope the credit limit increase goes through so that I can get started with those transfers and get that debt down.
I’ve been given more balance transfers than I’ve been turned down for. One thing to watch out for when transferring to a card that already has a balance: your payments will be made to lower interest balances first. So, if you have $100 at 15% and $200 at 3%, your interest rate is closer to the higher number, because that entire $100 collects interest until the $200 balance is paid off completely.
Yes I do realize that this will happen but the 6.9% and the rate on the current rate on this card are still both lower than the card I am transferring from. Thanks for the comment.