Balance Transfers?

[mstaton]

Just wondering - my husband and I are in the process of trying to manage and pay down several credit cards from different stores. Total debt is around $3900 for all of the cards. We have a Best Buy card, a Home Depot card, a Whitehall Jewelers card (Whitehall is no longer in business) and a Capital One card.

Trying to keep up with the Best Buy card is a nightmare. High APR, slow payment processing, etc.

Would it be wise for us to get a different credit card with a lower APR and transfer the balance from these cards onto the new card? Should I transfer all of the balances, or just the Best Buy?

I know it would be easier on us if we just had one bill to pay instead of four, but I mentioned this at one point and my mother said she thought it was a bad idea. I'm a credit newb - I just want to get some of this debt paid down but I don't want to cripple us if I make a mistake.

If transferring the balances is a good idea, can anyone suggest a credit card that I should look into?

Thanks in advance!

[centex]

All of those store cards likely have horrendous APR's...and in that respect, a BT to a card with a low rate, even if only six months or a year, would save money on interest.

A new card will also help with overall utilization ratios, which is a significant component of the score algorithms.

The other areas where a BT helps is in reducing the ratio of open accounts to accounts with a balance.

Your mother likely does not grasp the nuances of credit scoring. The consolidation, if you can get a card with at least a $5K limit, will be beneficial in more ways than one...

Without knowing your credit scores and background, you might want to look off the beaten path...lenders like BMW, State Farm and UMB have been noted for good limits and good terms. None will ever be accused of great in either category, but all have terms better than many of the majors and also have customer service staff based in the United States. Also, they have cards with no annual fee.

[mstaton]

Thanks for the advice!

One more question. Once I transfer the balances off the other cards, should those accounts be left open, or should I close them out?

My guess is leaving them open with no balance would be better for the credit score, but I'm not sure I have a firm grasp on how the score is calculated.

Thanks!

[spinn]

Citibank offers 0% Apply for a low rate Citi® card

Transfer it to them and keep the others open but do not use them.

Im not happy about it but I have some money on 0% cards as I paid a DR to commit malpractice several years ago and had to finance it.

[mstaton]

Thanks for the link!

[georgeharrison]

Thanks for the information

[Shane Watson]

There are some companies that deal with debt. They have an option where you get to pay one bill, which is to them. There are many companies providing such service. Just search for it.

[centex]

Quote:

Originally Posted by Shane Watson There are some companies that deal with debt. They have an option where you get to pay one bill, which is to them. There are many companies providing such service. Just search for it.

And those companies are RARELY a good deal for the customer, who after using the third-party services, have nothing to show but effed credit and fewer funds than they would have had if they tried to settle on their own.

Oh yeah, they also often get an up close and personal view of a courtroom after they get sued for the underlying debt...

But hey Shane...go ahead and try to spam away.

[jjgross]

Quote:

Originally Posted by Shane Watson There are some companies that deal with debt. They have an option where you get to pay one bill, which is to them. There are many companies providing such service. Just search for it.

When are you going to post your companies name?