Chase 0% Credit Card
Author: Guest
Posted: Thu May 06, 2004 1:42 pm
Post subject: Chase 0% Credit Card
I'm a newbie to this forum but have appreciated the wealth of information I have read so far. Here's my dilemma that i'm hoping you GREAT people could provide some insight on.
I received an offer from Chase for a Mastercard with 0% for life on balance transfers over $8k (with other rates for smaller transfers max 2.99% for life, for purchases, preferred pricing APR rate that starts at 10.9%). When I read the fine print, they are charging a $150 balance transfer fee for each transfer (i think that's pretty steep).
Secondly, I have a Providian Card (no barfing) that I've had for years that has a $460 secured deposit in their possession. It has no balance and I don't use it for anything. High APR 15.99% and I just received the bill for the Annual Fee-$39. I don't want to cancel due to my FICO being hurt along with my debt ratio taking a dive(.22 to .26). But that $460 could go to debt repayment.
I have 2 cards with balances (Bank of America $7k @ Prime Rate for life of balance, Discover $4k 0% until 6/05), so i could accomodate the $8k to get the 0%.
Do you think I should apply for the Chase given the stiff transfer fees and high APR and then cancel Providian or what?
Thanks in advance
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: AddictedViper
Posted: Thu May 06, 2004 2:14 pm
Post subject: Chase 0% Credit Card
If I were you, I would cancel Providian card. I'm not gonna pay annual fee for that card.
Author: Eugene
Posted: Thu May 06, 2004 4:42 pm
Post subject: Chase 0% Credit Card
... or ask Providian to upgrade your card to one that does not have an annual fee OR a security deposit. If they don't do it, I agree with Viper - cancel the card, but AFTER (and IF) you receive the new card you want now.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Thu May 06, 2004 9:09 pm
Post subject: Chase 0% Credit Card
Get the Chase card, balance tranfer the 8k (or more) to your Providian account, then ask for a refund of the excess. Use it to pay down your other accounts.
This way, you incur only one balance transfer fee of $150. You're paying more than $150 per year interest on that $7k prime rate account, so you're coming out way ahead. $150 sounds like a high rate for a balance transfer at first glance, but it's under 2% of the $8k transfer--and if you never use the Chase card for anything else, it's all the money they will ever get from you in interest or fees. The minimum payments will likely pay off the balance in 5 years or so, so that' $30 per year as your net cost instead of, say, $320 per year at 4% on the $8k. That's a good deal! (Actually, of course, since the outstanding balance is always going down on both of these loans, the interest/fee is likely to be half those numbers on average over the 5 year payout. I'm not gonna do the math here--you get the point without it.)
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Thu May 06, 2004 1:42 pm
Post subject: Chase 0% Credit Card
I'm a newbie to this forum but have appreciated the wealth of information I have read so far. Here's my dilemma that i'm hoping you GREAT people could provide some insight on.
I received an offer from Chase for a Mastercard with 0% for life on balance transfers over $8k (with other rates for smaller transfers max 2.99% for life, for purchases, preferred pricing APR rate that starts at 10.9%). When I read the fine print, they are charging a $150 balance transfer fee for each transfer (i think that's pretty steep).
Secondly, I have a Providian Card (no barfing) that I've had for years that has a $460 secured deposit in their possession. It has no balance and I don't use it for anything. High APR 15.99% and I just received the bill for the Annual Fee-$39. I don't want to cancel due to my FICO being hurt along with my debt ratio taking a dive(.22 to .26). But that $460 could go to debt repayment.
I have 2 cards with balances (Bank of America $7k @ Prime Rate for life of balance, Discover $4k 0% until 6/05), so i could accomodate the $8k to get the 0%.
Do you think I should apply for the Chase given the stiff transfer fees and high APR and then cancel Providian or what?
Thanks in advance
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: AddictedViper
Posted: Thu May 06, 2004 2:14 pm
Post subject: Chase 0% Credit Card
If I were you, I would cancel Providian card. I'm not gonna pay annual fee for that card.
Author: Eugene
Posted: Thu May 06, 2004 4:42 pm
Post subject: Chase 0% Credit Card
... or ask Providian to upgrade your card to one that does not have an annual fee OR a security deposit. If they don't do it, I agree with Viper - cancel the card, but AFTER (and IF) you receive the new card you want now.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Thu May 06, 2004 9:09 pm
Post subject: Chase 0% Credit Card
Get the Chase card, balance tranfer the 8k (or more) to your Providian account, then ask for a refund of the excess. Use it to pay down your other accounts.
This way, you incur only one balance transfer fee of $150. You're paying more than $150 per year interest on that $7k prime rate account, so you're coming out way ahead. $150 sounds like a high rate for a balance transfer at first glance, but it's under 2% of the $8k transfer--and if you never use the Chase card for anything else, it's all the money they will ever get from you in interest or fees. The minimum payments will likely pay off the balance in 5 years or so, so that' $30 per year as your net cost instead of, say, $320 per year at 4% on the $8k. That's a good deal! (Actually, of course, since the outstanding balance is always going down on both of these loans, the interest/fee is likely to be half those numbers on average over the 5 year payout. I'm not gonna do the math here--you get the point without it.)
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 9:31 PM
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