I just talked to a friend of mine who seems to have made a pretty big mistake! She has a Household Bank Visa with a $3400 balance and 18% APR. She wanted to pay off her account so she made the mistake of going through a CCCS-type agency. A HHB rep contacted her to tell her (a) if she does this she'll never get credit in 7 years and (b) rather than do this, they would offer her a simple interest loan of $3400 at 18% to pay off her card! WTF?!?! The problem is she is not behind on this or any other account!!! She didn't realize that she could call and demand a lower interest rate! So I told her she could do that or better yet do a BT to get a better bank and better rate. I told her to pull her reports/scores but from what I can tell she's in the prime area: about 4 or 5 accounts, all are 3-4 years old and never late. I don't think HHB has taken any action to close her account. But I wanted to see who are some good candidates for a BT? I was thinking of Amex Blue or Amex Delta SkyMiles gold, Citi AA Platinum or Fleet Fusion. Any others I should have her try?
I thought AMEX Blue didn't have any 0% BT offers. At least last time I checked they didn't. They do have a low regular rate, though, for those who qualify.
I just went to the Blue site. The 0% for 6 months, it appears to me, does NOT apply to Balance transfers...only new purchases. The only BT benefit is that if/when you do a BT it will be "fee free" rather than charging 2 or 3% like a lot of cc companies do as a transaction charge. Someone correct me if I'm interpreting this wrong because I would apply at this point, I think, if the 0% for 6 mos. applied to a BT.
The lowest rate Blue is offering for BTs right now is 5.9%. I would try either Discover or Citibank. They both have BT fees (usually $5-50), but the 0% interest will save you more in the long run rather than paying 5.9% or 9.9% and no BT fees. Dani
Amex is offering prime - til - paid - off (4.75?) on BTs - but you have to get that specific offer (or ask for it). As for the card being "wicked cool" .... PLEASE tell her that any payments made will go to the lowest interest rate items (BTs) first - purchases will sit and accrue 9.9% until the entire BT is paid. These low-rate xfer offers are how the CC companies are ensuring they make $$ - by "trapping" higher rate balances and not letting them get paid down until lower rate items are paid. If she BTs to blue, IT MUST GO INTO THE SOCK DRAWER. No exceptions. So, if she likes blue, get it and use it -- but also get another card to BT to (0% for 7-9 months from MBNA, Fleet, etc.). AND she should do it fast. If the CCCS pulled an inquiry - it's a red flad. If HHB decides to close (or jack up her rates) because of CCCS (or fear of), she's screwed. Good luck, mj
Given her good standing with current accounts she could qualify for Juniper. I recently applied for a BT with Juniper. Terms: $5500 CL, 1.9% fixed for 6 months on BT, purchase & cash. No fee whatsoever for BT. Afterwards, it's 9.9%V.
Thanks mj and rina. I can't get through to her right now, her company locked them out of outside email access LOL. She told me a new manager thought email was "detracting from improved performance." Problem is that they now have to handle 3-4 times the number of phone calls to and from crabby customers and suppliers!
