Looking for help...
Date: Sat, 10/18/2008 - 10:58
I have a 24,000 balance with a major credit card. I have had excellent history with them for 10 years, never missing or being late on a payment. In September, I was 2 days late on my payment. My new statement shows that they raised my apr from 7.9% to 29.1% which has made my minimum payment now impossible to pay.
I called them and was basically told by the company manager that it sucks for me.
I have a 2nd credit card with no balance, it offers a so-so deal on balance transfers, 3% fee, 15.9 APR. Now 15.9% APR isnt my old 7.9% rate, but it is almost half of what the primary card just raised me to.
Now here is my question, as I dont know the rules/ laws. My primary card just sent me one of those super low balance transfer checks, 3.9% for the life of the loan. If I transfer the balance from card 1 to card 2, wait for it to post, then pay off card 2 with the low apr check from card 1 (as I will now have no balance) is that legit? Can I do that or is there some rules I am not aware of?
Thank you for any help.
I don't think there is anything that legally forbids you from do
I don't think there is anything that legally forbids you from doing that. You would need to take into account the transfer fees that will be charged by card 2 (and maybe card 1?), but in the long run you would still save money. Also, many balance transfer offers have a cap on the fees that will be charged (for example, 3%, minimum $10, maximum $200 or something like that), so check the fine print. You may not have to pay the percentage on the entire balance.
I would call back your credit card and let them know that if the
I would call back your credit card and let them know that if they are unable to let your apr be reduced, then you have this other plan on the table. Most credit card companies will work with you.
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You should let your payment go 30 to 60 days late and call them and tell them you are having some type of hardship and can't continue making any payments. Depending on the credit card company you should be able to get back down under 9.9%.
