I just got off the phone with Bank of America, the lovely holders of three of my credit cards and my checking account. They moved some credit around on the cards, so within the next few days I should be able to transfer my $7,000-ish balance from one card to another with a new interest rate of 1.99%. This should save me at least $100 a month in interest until I pay the card off. I have until January 2009 to pay off the balance or it defaults to 22.99% APR. I don't see this being a problem at all, and even if it was, my interest rate was worse than that anyways. I'm happy about this, because my interest rate really ticked me off, and I hated seeing my payment being eaten up by interest.
However, it didn't come without a price. I'm going to get charged a transfer fee of "up to $75" and they also closed my oldest card. The card only went back to April 2001, and I have another card that is still open from June 2001, so I'm hoping this won't affect my credit score that much.
This is good, right?
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3 comments:
I think it is a good call. 1.99% is amazing, and since you have another credit card open for about the same amount of time I think your credit score will be okay. It is hard to tell though without knowing the amounts of credit you had on the card you closed.
They shuffled around my credit limits, so now I have the same amount of credit on the two cards combined as I did on the three.
You may get a small ding for closing your oldest card, but if you make your payments on time and are a "good girl", it may not affect you too much. 1.99% is a great rate and I would have done the same exact thing.
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