Should I open another 0% interest balance transfer credit card?

Sorry for the flurry of posts. But since I'm resuming my hiatus starting tomorrow, I have to write as much as I can today! ;)

I opened a Capital One card back in October that gave me 0% interest for 6 months and a small $1000 opening limit. I transferred $999 from my Mastercard. It currently has $969 sitting on it. A couple weeks ago, I got an offer from Wamu with 0% interest on balance transfers until January 2010. They charge a 3% fee on balance transfers. I assume I would still get between a 1000-2000 limit, since my credit score is better than it was in October, but not by much. (If I was somehow able to get a $7000 limit, and I transferred the bulk of that from my Visa card, I would save about $500 in interest charges ($700 minus the 3% fee)).

I could transfer the balance from the Capital One, and have it be interest free for an extra six months (saving me $23 after the fee) . After 1/10, the APR will switch to 9.99%, which is a better rate than Capital One (it will be 12.99%).

Also, I need some leverage with Capital One, since I want to try to get them to remove a negative mark that they posted on my credit report over the summer. I figure I have zero negotiating power when the only card I have with them is nearly maxed out.

So what do you guys think? Should I open the Wamu card, or throw the offer in the shredder?

9 comments:

Brandi said...

I am not all that savvy with credit cards and really any of that stuff you said. I do know that credit cards and I are a dangerous combination, so my best advice is to cut them all up :) BUT, this sounds like its a big decision that involves a LOT of variables so you might want to consult a professional about it...maybe do a free consult with a debt counselor about the best options...? I dunno...probably not much help :) GOOD LUCK with everything!!

Sunflowers said...

@Brandi: The point's moot now since I tried to apply and was denied! :p Maybe they accidentally sent me the offer... hmph. It would've saved me some money, but not that much. Hopefully I'll get another interest free offer with NO fee sometime next year. If the credit limit they offered me was higher and there was no fee, that would very beneficial.

Miss M said...

I was going to say no anyway, it's not worth it for such a small limit. I get annoyed if they give me less than $5k!

Sunflowers said...

@miss m: I shouldn't even have opened the Capital One card, but I was impatient to clear out the Mastercard (and stop paying the 24% interest!). The Visa's APR is not as terrible, so I'll just be patient, and once my credit score is high enough again, I'm sure someone will offer me a better deal with a higher limit. Then I'll jump on it. :)

moneymatekate said...

I have such problems with "pre-approved" offers that I just don't bother with them anymore. My score is around 800 and has been for years, so it's not that...quite the opposite: Capital One listed half a dozen BS reasons to deny me, but I'm pretty sure the truth is "you pay off your balance in full every month, we won't make any money off you". So even though I'm pissed at Citibank for increasing my APR from 13% to 20% just for the hell of it, I'm staying put and hoping I'll never need to fall back on my credit card. Good luck!

Sunflowers said...

@moneymatekate: WOW, that's a huge increase! :( That sucks...

Sallie's Niece said...

I have no opinion on the credit card but re: book decisions...I started Saturday by Ian MeEwan and just really couldn't get into it. I did like the movie Atonement though.

Sunflowers said...

@Sallie's Niece: I saw part of Atonement... I had the movie spoiled for me in advance by a bunch of people so it was hard to love it. :\

Maybe I'll cross Saturday off the list? Isn't it about a day in the life of some man... and someone terrorizes his family?

Over the Cubicle Wall said...

Thanks for the link to my blog!

Sounds like this one worked itself out. Maybe the next offer you get, call your current cardholder and ask them to match it or you will close your account? They may be willing in order to keep your business for the long term.

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