Help, what is a revolving acc

Discussion in 'Credit Talk' started by nelsonfan, Apr 21, 2001.

  1. nelsonfan

    nelsonfan Well-Known Member

    Can anyone explain exactly what a revolving account is? My parents got a cash advance from Household Finance for $4000.00. They have paid $99.00 per month for the last year and the balance today is $4236.72. The finance charge on $4192.85 is $92.87. That means only $6.13 goes towards paying off the balance. A $50.00 yearly fee was added this month. Now, they have to pay 26.9% on that $50.00. I'm going to transfer it to one of my accounts with a lower interest rate. Thanks so much for any help.
  2. MikeB

    MikeB Banned

    Re: Help, what is a revolving

    You explained what "revolving" is yourself with the situation above. "Revolving" means that if you pay the minimum due on your credit card accounts, you will be paying on the debt for several years. The debt "revolves" back to you because of interest and fees. Always pay as much as you can and never just the minimum.

  3. judyputy

    judyputy Well-Known Member

    Nelson fan

    Do your parents have the ability to apply for any new cards? If so they can transfer some of the balance to a teaser card for 2.9 or something and you can maybe get a teaser rate on your card to transfer the rest of the balance and it will be paid much faster.

    If you do get a decent teaser rate have your parents buckle down and pay as much as possible on these two cards. An interest rate of 1.9 or 2.9 is almost nothing so payments are pretty much straight money paid.

    Also do they have any other charges on the card? If so, be advised that any payments are going to pay off those BEFORE the cash advance. That's a little trick they like to pull. They like to get as much interest out of cash advances as possible.

    Good luck!

  4. nelsonfan

    nelsonfan Well-Known Member

    Thanks Judy!!!!

    I know what you mean about the lower rate being paid off first. I have had a 3.99% fixed with shell mastercard for years. Any purchases are 17.9%. I had a balance when I got the 3.99% transfer. But the 3.99% gets paid off first and the 17.9% balance has not went down at all. Sometimes it goes up a few dollars. I don't know why it does that. I have made no purchases on this card at all, since the transfer. My mom has tried several times to get one of those low interest transfer rates, but since being on this board I have found out that this is probably hurting her chances of getting any more credit for awhile. By showing inquiries on their credit report. So I will have to put it on my card, which I really don't mind. I'm sure I owe them (my parents) more then that. They have helped me through some rough times in the past.

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