i went to building society with ds recently - to give him money for his birthday. and i was talked into - sold rather - a credit card. 0% interest for 20 mont, 3.1% transfer fee. looking into it, it will cost me £50 to transfer, hwoever after the 20 months the interest rate goes up to a whopping 19%, my current cards are around 14 and 16 %, help me decide.
You need to work out from your balance how much you would pay off on each during that time. If transferring would see you balance paid off by the end then yes if not you need to work it out or plan to transfer again at then end of it.
Depends what your balance is? I'd transfer as my balance would easily be paid off in 20 months. However, are you sure your current cards are 14 and 16%, that's very low in this climate. My bank CC that I don't use has crept up over the years to 24.9%. Most credit cards are now around 18-20% if you get accepted.
trouble is the one where i am not clear, i only got because i trsanferred from another card. i am crap at this business. i shouldnt use the card. i dont use it in shops as i cant remember pin but i do use it on internet.
Just done some quick calculations based on you saying your balance transfer fee (at 3.1%) would be around £50. So say you're balance is £1650. On the 0% one, if you paid £85 per month, you'd pay it off in 19.5months and you pay £0 interest. If you had £1650 on a credit card at 16.9% and paid £85 a month, it would take 23 months to pay the whole balance off and it would cost £260 in interest.
Transfer is good if the give you enough credit limit to do the whole transfer, I tried one a couple of years ago but they gave me the smallest credit limit so I then ended up with two cards. Still saved me some interest.
I'd definitely recommend cutting up the credit card so you're just paying it off and not adding to the balance. I have two CCs one that is 0% and not used, just paying the balance off. And one that is used for emergency and then paid off straight away.