0% balance transfer question

[emon87]

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.

[eastbay]

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

[wmspringer]

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

[vilemerchant]

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.

[wmspringer]

[ 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.

[Sardo Numspa]

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