Balance Transfer? Or keep old credit card?

Question

I got a credit card about a year ago, and the introductory rate (0% APR) is almost up and will be increased. If the rate is being increased for purchases, is it safe to keep my old balance on there without any new purchases, and pay it off? Or do I pay the 3% to transfer it (on $550) to a new card.

I guess my question is... does a credit card charge you the new APR if you don't put any new purchases on it?

Thanks!

Answer 1

Well, I could give you more details with a few more specifics, but heres what I have to offer:

The credit card will charge you the new APR on the existing balance that you have. If you had any cash advances or any such purchases that put your regular rate higher, it will follow the same rules.  Transferring the balance is a good option if you are going to only pay the minimum or just keep using the card.  But before you go and apply for a new card and transfer the balance out of your old one and close it out ( if you want to) keep your credit in mind!  Many people forget that your credit has not very much to do with your age or how long you have had cards, but how long you have kept accounts in good standing.  So if this is maybe the only card you have had for a year it might be best to keep it open and have a small balance you pay off every month.

I hope this answers your question a bit, let me know if you need anymore help!

Answer 2

They will start charging you interest on that balance when the introductory period expires.  

Where do you plan to transfer the balance to?  Do you have another 0% offer?  It's not a good game to get into.  You should really focus on getting that balance paid off ASAP.  

I don't know how much you can pay on it each month - it is a small balance.  I used one of the credit card calculators on bankrate.com and put in 15% interest because I have no idea what your rate is going up to.  Using that interest rate with a $550 balance, if you pay $95.72 each month, it will be paid off in 6 months and will cost you about $24.32 in interest.  If you transfer the balance to a 0% card, you will pay $16.50 (unless they have some kind of minimum balance transfer fee).  It's not a big difference, as you can see.  

Cut back on your expenses and get the card paid off ASAP so you don't have to worry about it or the interest rate.

Good luck.

Answer 3

You can transfer the balance to a credit card that is 0% and  has no transferfee:  Check out http://www.gozeropercent.com