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Using a new credit card to pay off an old credit card?

our current credit card has an APR of 25%. i get credit card offers about 4 times a week saying they have a 15% or 20% APR. is it financially wise to get a new credit card w/ a lower APR , use it to pay off the card w/ the higher APR, saving ourselves about $300 a year? or is this dangerous?

we have a good credit score & only one credit card that we make decent payments on. at the rate were going we'd have it paid off in about a year, but it would be about 2 months sooner w/ a lower APR.

 
okmanders

Asked by okmanders at 1:40 AM on Jul. 5, 2011 in Money & Work

Level 42 (152,217 Credits)
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Answers (8)
  • There are some you can get with 0% for the first few months up to a year. Look into those or the 0% transfer ones. You'll save yourself tons and pay off the balances sooner
    how_reb

    Answer by how_reb at 2:26 AM on Jul. 5, 2011

  • You have to usually pay a transfer fee to transfer from one card to another, usually around 4% so that would eat up most of your savings in APR.
    slw123

    Answer by slw123 at 7:19 AM on Jul. 5, 2011

  • If u have a good credit score you should apply for a credit card at a local bank for 8 %.
    emmyandlisa

    Answer by emmyandlisa at 1:44 AM on Jul. 5, 2011

  • With good credit you just be able to find a card with 0% on balance transfers for a year. Yes do this. Don't charge to it and cut up the 25% one. This is a horrible interest rate.
    HollyBoBolly

    Answer by HollyBoBolly at 5:34 AM on Jul. 5, 2011

  • If you get a new one at 0% read the fine print closely. It may jump to an obnoxious rate after the initial free period. Be diligent to pay it off and then get rid of it.
    whitepeppers

    Answer by whitepeppers at 7:10 AM on Jul. 5, 2011

  • If you have good credit, call your current card and tell them you are looking at switching, and ask if they will lower your rates. It can work!

    If you do switch (and read the fine print, but it's not necessarily a bad idea), also know they might not give you a credit line to cover the whole balance being transferred.
    KateDinVA

    Answer by KateDinVA at 4:15 PM on Jul. 5, 2011

  • No, in answer to the first question. Best to try and get a low interest loan to consolidate your debt.
    tasches

    Answer by tasches at 5:11 PM on Jul. 6, 2011

  • i got an offer today from our current credit card company offering a 0% APR for a year w/ 3% transfer fee (which equals around $100 or so). i think were gonna take that. thanks for the help!
    okmanders

    Comment by okmanders (original poster) at 5:13 PM on Jul. 6, 2011

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