0% APR balance transfers - any pitfalls?

[RaistlinZ]

I currently have about $8200 CC debt and the interest is killing me. I was thinking of trying a balance transfer to a new CC with their 0% introductory APR. I think Citi is offering a deal "up to 15 months" after which the interest rate is 7.99%.

Are there any pitfalls of doing a balance transfer to a new card other than not paying the balance off in the introductory period?

 

[Walking in Circles]

I have it going with a Citi and MBNA card. I think they both had BT fees of 1%, but nothing beyond that.

 

[Zee]

just the fees that's it. and the credit lookup it causes

 

[SoulAssassin]

pay attention to the max fee...most are 3% with no maximum which means you are paying 3% of that ~$240 out of the gate. Probably better than what you are paying now but keep it in mind. The best deals have a 50-100 max fee.

 

[her209]

Take a loan and pay it off.

 

[IamBusby]

How would taking a loan at much higher interest rate help pay it off faster?

Taking a 0% card would be a much better idea. as long as you DO pay it off though

 

[yhelothar]

Yeah you should go for it, in fact, I think you should be really happy if you even get approved for it, with enough credit limit to transfer most of your balance over.

 

[DaWhim]

having a $11,000 sitting at citi for a year. the 0% apr is running out soon. I have recently got approved for 15k with BofA and it is being transfer to there for another 1 year 0% apr.

what kind of pitfalls? as long as you make the minimum payment every month, you are fine.

 

[her209]

Originally posted by: IamBusby
How would taking a loan at much higher interest rate help pay it off faster?

Taking a 0% card would be a much better idea. as long as you DO pay it off though

There is an initial fee on the balance transfer.
You run the risk of the APR jumping by missing a payment.
You're going to have to find another card when the 0% runs out.

 

[Strk]

The transfer can involve fees. Some cards require a purchase or two every month. If you use the card for regular purchases, the payments go to the lowest interest first (I.e. charge $50 and it will get charged interest until the 8200 is paid off).

 

[DaWhim]

not all cards involve BT fees which is usually 3% and a cap. card issuers have been removing the cap.