Credit Tips: Better Interest Rate Credit Card Worth the Transfer Fee

Posted On: January 1, 2005

Author: amyb
Joined: 14 May 2004
Posts: 1
Posted: Fri May 14, 2004 11:09 am
Post subject: variable rate?

We are always getting offers and this one just caught my eye. I just recieved an offer from fleet for a variable 3.99apr for transfers. It says either the minimum rate of 3.99% or LIBOR + 2.810% (about which I don’t have a clue ) We currently have a Capital One with 9.99 fixed. We do not make purchases with this card; it’s leftover from years’ past vacations, gifts, etc. We have a balance of a little less than $3000, and usually pay $300/mo. Is it worth it to switch, or should we just keep what we’ve got since it will be paid off within the year?

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Author: Polonius
Credit Expert (100+ Posts)
Joined: 19 Jan 2004
Posts: 340
Posted: Fri May 14, 2004 2:22 pm

Sure, grab it. Why pay 9.99% when you can drop that to 3.99%? Even if you have to pay Fleet a balance transfer fee it’s worth it (I think Fleet’s fee is a maximum of $35, right?).

bankrate.com/brm/ratewatch/other-indices.asp

quotes the LIBOR rates; they vary with time period involved and are 1.1% for the one month rate to 1.88% for the one year rate right now. Your offer must have specified which LIBOR rate would be used. CapitalOne offered me a fixed 2.9% no fee on balance transfers good until paid on one card and 5.9% no fee on another. So you might want to call CapitalOne, tell them you received the other offer from Fleet, and ask them if they’ll lower your current rate.

Good luck!

Polonius

“Neither a borrower, nor a lender be; For loan oft loses both itself and friend”

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