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#1
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0% balance transfer question
So i got a Discover card a couple months ago. I just realized that it came with an introductory 0% APR for a year (expires 02/08). Well, I think it does anyway.
The statement says: Standard Purchase rate: 17.99% cash advance rate: 20.99% Introductory Purchase rate: 0.00% ** expires 02/08** Balance transfer rate: 0.00% ** expires 02/08** Now, I think I can just transfer all my balances from my other credit cards onto this one up to the limit and just pay the minimum without penalty, right? (OR i could just make all my purchases with the discover for a while). That way I make 5% for an extra 8 months. I just want to make sure I'm not gonna screw myself here. I know that carrying a high balance will pull down my credit score while I do this, but that doesn't matter, as it will shoot back up as soon as I pay off the card right? Also, it sayd they expiration date is the "Last day of billing period during the month/year indicated" That means I should pay it off BEFORE the end of the cycle during February 2008 right? Thanks. |
#2
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Re: 0% balance transfer question
Check the fine print. There are often transfer fees that are paid off the top on transfers. There may also be restrictions on the 0%, for example "new purchases only" which would mean you would not get it for your transferred balance. eastbay |
#3
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Re: 0% balance transfer question
Correct. Read the terms carefully, but the nice thing about Discover is that some of their cards have NO balance transfer fees. Just be sure you don't inadvertently do a cash advance.
You might find this useful: http://twentiesretirement.com/zero-interest.html |
#4
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Re: 0% balance transfer question
Not sure if America works the same as Australia in this regard, but over here you have to make sure you don't use the card once it recieves a balance transfer. If you make purchases afterwards they'll begin attracting interest at the full rate, while your repayments pay off the 0% paying balance first. Basically any purchases you make are impossible to pay off until you've paid off the entire balance transfer first.
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#5
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Re: 0% balance transfer question
[ QUOTE ]
Not sure if America works the same as Australia in this regard, but over here you have to make sure you don't use the card once it recieves a balance transfer. If you make purchases afterwards they'll begin attracting interest at the full rate, while your repayments pay off the 0% paying balance first. Basically any purchases you make are impossible to pay off until you've paid off the entire balance transfer first. [/ QUOTE ] It's that way here, too, but the card he mentioned has 0% on purchases as well, for the same period. Definitely something to watch for, though. What I do is just keep the cards separate; I have some for balance transfers and some for purchases and don't mix them. |
#6
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Re: 0% balance transfer question
i just did this with the Discover Miles card about 8 months ago. transfered my last balance to it at 0%. carried the balance for about 3 months and then just paid it off. there was no interest at all but i didn't get any miles for the transfer
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