Tips on Transfering Loan Balance To Credit Card
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Posted: Wed Jan 12, 2005 10:45 pm
Post subject: Tips on Transfering Loan Balance To Credit Card
Theresa Davenport
Date: 8/22/2000 9:56 am CDT
I have a personal
bank loan on which I am paying an interest rate of 12.45%. It has a
balance of under $2,000. Can and/or should I transfer that balance to a
lower interest credit card? I couldn't tell from the info I've read if
you can only transfer other credit card debt. Thanks for your help.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Wed Jan 12, 2005 10:45 pm
Post subject: Tips on Transfering Loan Balance To Credit Card
Board Monitor - CA
Date: 8/22/2000 10:54 am CDT
Theresa,
Thanks for your post! You pose an interesting question that I am sure many other consumers have wondered about at some point. This may sound like a "canned response", but the answer about whether you should transfer the balance from you loan to a card is... it depends.
12.45% is a fairly attractive rate, but if you have an excellent credit rating/history (visit http://www.cardratings.org/creditreport.html for more info. ), you can probably qualify for a card with a lower permanent rate. The other possiblity is taking advantage of a teaser rate. Most teaser rates are for 3-6 months, but a few are for longer periods. If you think that you can pay the $2,000 balance off within the introductory period, then I would definitely consider doing so. If not, you should consider what the rate will be after the introductory period to see if it would be cost effective.
You may fiind our "Calculators" section and our "Balance Transfers" section to be helpful.
Hope this helps!
Best Regards,
Curtis Arnold
P.R. Director
CardRatings.org
archive
Posted: Wed Jan 12, 2005 10:45 pm
Post subject: Tips on Transfering Loan Balance To Credit Card
dave
Date: 8/22/2000 2:57 pm CDT
I recently paid off a high rate car loan with a balance transfer from Citibank (2.9% for nine months). I called customer service and they issued a check payable to me. I deposited the check in my account and wrote a check to pay off the car.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Wed Jan 12, 2005 10:46 pm
Post subject: Tips on Transfering Loan Balance To Credit Card
Board Monitor - CA
Date: 8/22/2000 5:08 pm CDT
Dave,
Good point...I forgot to address this issue. Using the transfer check to pay off the personal loan should not be a problem and is done quite commonly. You can usually have the balance transfer check make out to any creditor and many consumers request that balance transfer checks be made out to them directly (as you have done). I would suggest, though, that Theresa verify this with the credit card issuer before applying.
Best Regards,
Curtis Arnold
P.R. Director
CardRatings.org
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Wed Jan 12, 2005 10:45 pm
Post subject: Tips on Transfering Loan Balance To Credit Card
Theresa Davenport
Date: 8/22/2000 9:56 am CDT
I have a personal
bank loan on which I am paying an interest rate of 12.45%. It has a
balance of under $2,000. Can and/or should I transfer that balance to a
lower interest credit card? I couldn't tell from the info I've read if
you can only transfer other credit card debt. Thanks for your help.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Wed Jan 12, 2005 10:45 pm
Post subject: Tips on Transfering Loan Balance To Credit Card
Board Monitor - CA
Date: 8/22/2000 10:54 am CDT
Theresa,
Thanks for your post! You pose an interesting question that I am sure many other consumers have wondered about at some point. This may sound like a "canned response", but the answer about whether you should transfer the balance from you loan to a card is... it depends.
12.45% is a fairly attractive rate, but if you have an excellent credit rating/history (visit http://www.cardratings.org/creditreport.html for more info. ), you can probably qualify for a card with a lower permanent rate. The other possiblity is taking advantage of a teaser rate. Most teaser rates are for 3-6 months, but a few are for longer periods. If you think that you can pay the $2,000 balance off within the introductory period, then I would definitely consider doing so. If not, you should consider what the rate will be after the introductory period to see if it would be cost effective.
You may fiind our "Calculators" section and our "Balance Transfers" section to be helpful.
Hope this helps!
Best Regards,
Curtis Arnold
P.R. Director
CardRatings.org
archive
Posted: Wed Jan 12, 2005 10:45 pm
Post subject: Tips on Transfering Loan Balance To Credit Card
dave
Date: 8/22/2000 2:57 pm CDT
I recently paid off a high rate car loan with a balance transfer from Citibank (2.9% for nine months). I called customer service and they issued a check payable to me. I deposited the check in my account and wrote a check to pay off the car.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Wed Jan 12, 2005 10:46 pm
Post subject: Tips on Transfering Loan Balance To Credit Card
Board Monitor - CA
Date: 8/22/2000 5:08 pm CDT
Dave,
Good point...I forgot to address this issue. Using the transfer check to pay off the personal loan should not be a problem and is done quite commonly. You can usually have the balance transfer check make out to any creditor and many consumers request that balance transfer checks be made out to them directly (as you have done). I would suggest, though, that Theresa verify this with the credit card issuer before applying.
Best Regards,
Curtis Arnold
P.R. Director
CardRatings.org
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 2:13 PM
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