Question about Balance transfer 0% APR?

Question

Hi

I recieved a credit card offer from WaMu Visa for 0% apr on balance transfers till Oct. 2009. Purchase APR is 12.99%

Default is 30.99%.

I'm looking to open this credit card simply to transfer two balances from other credit cards. Together both balances are about 800 dollars but one of them charges an annual fee of 29 and the other 23%APR.

I'm pretty novice at credit cards so I'm wondering if a balance transfer is smart. They charge 3% of the balance and I don't intend to make purchases, just simply pay the balance without interest AND get away from the other higher fee cards.

Anyone tell me about it? How is WaMu?

Answer 1

If possible, it would be best to pay off the other cards immediately using money that you already have (not a balance transfer).  

If you do not have the ability to do so within the next two months, then the balance transfer (at 3% one-time + 0% APR for the next year) is a better deal than 23% APR where you are now.

REMEMBER TO "CLOSE" THE ACCOUNT WITH THE ANNUAL FEE.  THE ANNUAL FEE WILL CONTINUE TO BE CHARGED AS LONG AS THE ACCOUNT REMAINS "OPEN", EVEN AFTER THE BALANCE HAS BEEN PAID IN FULL.

Answer 2

As long as you are disciplined enough to not charge anything till you get the whole balance paid off, this is a good deal.  Just be sure to pay the balance before Oct 2009 and never be late.

Close the account with the annual fee via letter.  Request written confirmation that the account is closed and 0 balance.  If the other account doesn't have an annual fee, keep it open.  Use it occassionally and pay it in full.   This will keep the account open and add to your good payment history.

When you do get that $800 paid off, use the WaMu card every month and pay it in full.  This will build your credit history and score but keep you out of debt.

Answer 3

A balance transfer fee of 3% is very typical.  It will be difficult to find anything less.

If you transfer $800, you will be charged $24.  Making your new balance $824.  As long as you pay it off before your Oct 2009 statement, you will not owe any more (you won't owe any interest charges).  You also must be sure to pay on time every month or you could be in default.

On the other hand, say your current cards are charging you 12.9% interest.  Then, on $800, you are paying about $8.60 each month in interest.  So, in 3 months, you will be charged more than if you transfer the balance to the new card.  Making the balance transfer option seem to be the best choice.

I don't know much about WaMu.  I would also take a look at the Discover More Card.  They also offer a 12 month 0% balance transfer, but they also have cashback rewards, etc. that you can earn.