Here%26#039;s the math. I have a $10, 500 equity loan ( 8.25% APR). I want to transfer this to my credit card, reap the reward miles, and then transfer the balance to a new 0 % APR card (on transfered balances for 18 months). The only rub is that my bank will only accept CASH transfers from a credit card. Which bumps my current card%26#039;s APR to 24%. Still, it sounds beneficial if I immmediately transfer the balance to a new 0 % Balance Transfer card ( regardless of the %26quot; no%26quot; grace period). I have excellent credit, a $15,000 limit on my current card ( including cash advances), with no transfer fees. I can also pay off the balance on the NEW card ( I have one picked out with pre-approval) in 18 months, without having to pay any interest for a year. Pros? Cons? I appreciate your opinions
Can I pay off my $10,500 (8.25% APR) equity debt at my bank with my credit card and then transfer the balance?
Most often it sounds good, but don%26#039;t do it. Check with your current credit card about being able to reap the rewards. Sometimes they don%26#039;t give you any on balance transfers. If so, forget it. And if they only accept CASH transfers which will increase your APR to 24%, why even think any further about it? Now you have to convince your credit card company to lower the APR back down to what you had before.
Lastly, even the best thought out plans go awry. You may have this idea to pay off the 0% card before the 18 months is up, but what if an emergency happens, or you lose your current income? And again, read the fine print, most often those offers are only good until you are even 1 day late on a payment on that card or sometimes even a different account and then the 0% offer is done.
Bottom line - NO, No, NO!
Can I pay off my $10,500 (8.25% APR) equity debt at my bank with my credit card and then transfer the balance?
I suggest you check the fine print a little closer. It will say you cannot get rewards miles from balance transfers.
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