Money Tips: Should I Pay Off Mortgage With Credit Cards

Posted On: February 1, 2006

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Posted: Thu Jan 13, 2005 2:02 pm
Post subject: Should I Pay Off Mortgage With Credit Cards

susan a.
Date: 6/23/2000 2:09 am CDT

What are pros/cons of paying off small mortgage balance at 8.25% by doing a balance transfer at low teaser rate and then transferring to another low teaser rate at end of introductory period? It seems that if I still made the same monthly payment (not just the credit card’s required minimum) to the credit card, I’d save a lot of interest with the current 2.9% intro rates.

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Posted: Thu Jan 13, 2005 2:02 pm
Post subject: Should I Pay Off Mortgage With Credit Cards

Board Monitor
Date: 6/23/2000 3:32 pm CDT

Susan,

I think your assessment is accurate, though your actual interest savings would of course depend on the balance of your mortgage and length of time require to pay off your balance. Also, you should avoid multiple balance transfers within a brief period of time. This could affect your credit rating (see our “Credit Report” page at http://www.cardratings.org/creditreport.html for
more info.). One or two transfers should not hurt you though.

Good luck and I hope this helps!

Regards,
Jackie Hughes
Board Monitor
CardRatings.org

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Posted: Thu Jan 13, 2005 2:02 pm
Post subject: Should I Pay Off Mortgage With Credit Cards

cardrevolt.com
Date: 6/27/2000 3:12 am CDT

You’ll defiantly hurt your credit rating a great deal by transferring balances around multiple times. Issuer’s have ways of detecting how many times you’ve transferred that balance around, and will *not* set you at a low intro rate if they know your just going to send it somewhere else once the teaser rate expires. The pro is that you’ll save a small fortune in interest, and if you’re already happy with the rates your getting, or you have a very positive past history (8.75% isn’t too bad for a mortgage rate) then you won’t have too many worries. Just don’t say I didn’t warn you!

Good Luck!
CardRevolt.Com Staff Member
http://www.cardrevolt.com