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    pastor1189's Avatar
    pastor1189 Posts: 1,533, Reputation: 3
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    #1

    Aug 12, 2015, 12:06 PM
    Credit Cards
    Mr. Rodriguez has a offer from Discover 0 promo apr for 15 months.Only a transfer fee of $10.00


    The only credit card he has is Bank of america for $3,400 at 7.24%

    Should he entertain the discover card offer and pay of the Bank of america loan.
    He states he could pay the Discover card with a month payment of $768.00

    What do you think
    Curlyben's Avatar
    Curlyben Posts: 18,462, Reputation: 1857
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    #2

    Aug 12, 2015, 12:30 PM
    Yes..
    pastor1189's Avatar
    pastor1189 Posts: 1,533, Reputation: 3
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    #3

    Aug 12, 2015, 12:38 PM
    Very Good. Thank You.
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
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    #4

    Aug 12, 2015, 01:57 PM
    What is the Rate AFTER the promotion period? Will he be able to pay off the entire balance before the promotion period ends? I believe the answer to the second part is yes, as long as he pays it off before it ends. He has a very good rate with his Bank of America card now... I hope he plans on keeping it. I bet the Discover card jumps to a much higher rate than that after the promotion period.
    pastor1189's Avatar
    pastor1189 Posts: 1,533, Reputation: 3
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    #5

    Aug 12, 2015, 03:06 PM
    After the 15 months it would be 17% He has a FICO score of 775
    He only owes the 3,400 at Bank of America with a $16,000 credit limit.
    Discover card is about the same amount limit
    J_9's Avatar
    J_9 Posts: 40,250, Reputation: 5641
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    #6

    Aug 12, 2015, 03:16 PM
    He has a great credit score! The interest rate of the Discover card is more than double that of the BOA card after the promo period. He should just stick with the BOA card.
    tickle's Avatar
    tickle Posts: 23,801, Reputation: 2674
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    #7

    Aug 12, 2015, 03:21 PM
    It is only a promo, drawing him in. It reverts to the normal high rate of probably 25 or 30 per when the promo ends.

    He should decline and stay with BOA
    pastor1189's Avatar
    pastor1189 Posts: 1,533, Reputation: 3
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    #8

    Aug 12, 2015, 03:27 PM
    He owes nothing to discover. But 15 months is a long time.
    If he can afford the 768.00 a month should take him only 4 months.
    And with no interest.

    I guess he could double up on BA, but he would still be paying at 7% which is a $20.00 a month on his bill every month.
    Wondergirl's Avatar
    Wondergirl Posts: 37,750, Reputation: 5426
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    #9

    Aug 12, 2015, 04:17 PM
    Take the Discover card offer, meanwhile keep the BofA card, pay off his debt, then see which card gives him the better interest rate for future purchases. He can keep both cards and use the one with the better deal. And keep both paid off each month.
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
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    #10

    Aug 12, 2015, 06:36 PM
    As long as he can pay off the Discover within the 15 months promo period it's a good thing. If he can't then ts a no go. Another factor is whether interest accrues unless he pays in full. This is typical of no interest purchases, not of balance transfers. But what happens if the purchase is not paid in full within the promo period then it will be like he was charged interest from day 1. As I said,m this is not typical of balance transfers. In such cases, interest starts accruing only on the remaining balance.

    Another factor in this is how often he gets these offers. I have a similar FICO score so I'm constantly getting balance transfer offers. I just did a transfer to pay off a BofA card balance from a Citibank card. The BofA account was itself a balance transfer from another card. When the promo period on the Citicard expires, I will pay if off with another balance transfer. That should be the last one as the balance will be low enough by then to be paid off before the promo period expires.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,268, Reputation: 7689
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    #11

    Aug 12, 2015, 11:12 PM
    Agree, if he can pay the discover card off within the 15 months, he will save the interest.

    My other concern, not had a Discover Card (really have had no credit card for years) I don't believe in them. Is if there is any membership or annual fee. Even after the 15 month. Be sure the terms are all clear, read all the fine print.
    pastor1189's Avatar
    pastor1189 Posts: 1,533, Reputation: 3
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    #12

    Aug 13, 2015, 04:21 AM
    His discover card has no annual fee. Only a $10.00 fee for the balance transfer.
    A new factor has developed he has told me he has to start saving up for his property insurance due in November $3,200. So I think he should for now, he should hold up the discover offer. I just love your impeccable suggestions for church people in various situations
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,268, Reputation: 7689
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    #13

    Aug 13, 2015, 06:03 PM
    What Discover hopes, and most people with the 0 offer, is that people will end up charging more and new things, and at the end, have a large balance and end up paying a lot of interest.

    My son does use many of the 0 interest and moves balances from card to card ever so often. He swears he has not paid credit card interest in years and years.
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #14

    Aug 14, 2015, 05:30 AM
    Balance Transfers usually carry a fee, but that fee is generally a lot less than the interest on the amount.
    pastor1189's Avatar
    pastor1189 Posts: 1,533, Reputation: 3
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    #15

    Nov 6, 2015, 06:10 AM
    Cannot explain it. Anyhow he paid off the discover card. But didn't close the account.
    Moreover he didn't have to borrow any funds. Very commendable.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,268, Reputation: 7689
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    #16

    Nov 6, 2015, 06:27 AM
    It is very common for credit cards to have dozens of plans. Often they offer low or zero interest for a period, but then that plan will have a much higher rate of interest going into the period after the trial period. And from company to company, rates can vary greatly, plus vary by the type of plan you qualify for.
    pastor1189's Avatar
    pastor1189 Posts: 1,533, Reputation: 3
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    #17

    Nov 6, 2015, 07:06 AM
    So True

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