What is a better deal: A line of credit at 15%APR or a promo from Amex for 3.99%?

Question

In April I transferred all of my debt to a line of credit from Bank of America at 15% APR, where I pay a set amount every month and within a year, my debt will be paid off. I now have a promotional deal through American Express: transfer your debt from other cards to your American Express card and get an introductory 3.99% APR for a year. Now I know that as far as math goes, 3.99 is better than 15. However when I signed up for the Line of Credit, the woman at Bank of America told me that even though my Line of Credit had a similar APR, I would save money using this type of Line of Credit rather than keeping my debt on the credit cards. First, which way would make more financial sense? Secondly, was she just trying to get me to sign up for a Line of Credit or is there validity to what she told me?

Answer 1

Need more info - is the 3.99% an introductory rate or is it for the life of the balance?  Is there a transaction fee?  Otherwise - 3.99% is alot better than 15%, plus, I wouldn't believe anything Bank of America tells you.

Answer 2

On the surface it sounds like shes just trying to get you to sign up.  Just be sure to check out what % the credit card charges for the transfer.  Some of them will give you free balance transfers some charge you a percentage of the balance to be transferred as a fee which generally has a pretty high minimum.  Additionally make sure that the rate they are charging you for transferring the balance is the purchase APR.  Sometimes they stick in a balance transfer rate substantially higher than the purchase APR.

Answer 3

neither one unless you can pay off all the debt on the 3.99% acct within 12 months - rate may then go up to 19% or higher, even more if you are even 1 day late with a payment more than once.

Answer 4

I believe what she told you was "Bunk" , and that making larger payment is all that is saving you and that is paying it off in a year (which is likely a good thing). Always go for the lower rate. Transfer as often as neccassary for the lower rate (watch and negotiate ad.fees.) If your interest rates get high, threat to close or transfer balances, and cos. will often drop % to keep you.