Users like you have given feedback on this thread:
To give your opinion, vote using the thumbs above.
To give your opinion, vote using the thumbs above.
Share this thread on the web:
Share this thread by Email:
 del.icio.us
StumbleUpon
Google Bookmarks
Technorati
reddit |
Windows Live
Yahoo! My Web
Facebook
AOL IM
|
Share this thread by Email:
Discover card: near 0% balance transfer for the life of the balance but work is neded
I got an interesting offer from Discover card today. It is not on their site but it is NOT by invitation only and you can apply by calling 1800discover.
Get this credit card. Pay between $5 and $29 for balance transfer. Do NOT use this card for any purchases. Purchases are at some 13% and a little known fact is that, by your contract with credit card, your payment is applied to the portion of your balance with highest interest rate last.
Discover will send you a bill for one fiftieth of your remaining balance every month. You must religiously pay this balance. If you miss a payment rates skyrocket.
Around September 2004 you must start making at least 2 purchases per month to keep the interest on your balance transferred (but not on the new purchases) at 0% for the life of that balance.
Discover hopes that you start to make regular purchases and pay the 13% on them not realizing that, by contract, you may not pay off those purchases before you pay of you balance transfered.
You religiously make two $1 each (minimum puchase) puchases every month.
You have around 50 months to pay off your debt virtually interest free. Discover does have a 50 cents minimum monthly interest and accepts $10 as minimum payment. The reason I say that it will take around 50 months is that each payment is one fiftieth of the outstanding balance.
Example using significantly rounded numbers:
You transfer $10K. You pay $29 for the transfer. Your payment starts at $200 per month and goes down as you pay off your debt. Around Septembet 2004 you make 2 $1 purchases every month and immediatelly start to pay interest on that $2, then $4 and so on. Let say that you paid off your balance in 50 months. In 50 months you will have added $100 in puchases on which you will paying around $13 annually in interest. Compare this to, say, 6% on your card on which you now have the $10K - $600 annually. Now you need to ask yourself a question if the difference $587 annually is worth remembering to make the 2 silly $1 purchases every month.
Get this credit card. Pay between $5 and $29 for balance transfer. Do NOT use this card for any purchases. Purchases are at some 13% and a little known fact is that, by your contract with credit card, your payment is applied to the portion of your balance with highest interest rate last.
Discover will send you a bill for one fiftieth of your remaining balance every month. You must religiously pay this balance. If you miss a payment rates skyrocket.
Around September 2004 you must start making at least 2 purchases per month to keep the interest on your balance transferred (but not on the new purchases) at 0% for the life of that balance.
Discover hopes that you start to make regular purchases and pay the 13% on them not realizing that, by contract, you may not pay off those purchases before you pay of you balance transfered.
You religiously make two $1 each (minimum puchase) puchases every month.
You have around 50 months to pay off your debt virtually interest free. Discover does have a 50 cents minimum monthly interest and accepts $10 as minimum payment. The reason I say that it will take around 50 months is that each payment is one fiftieth of the outstanding balance.
Example using significantly rounded numbers:
You transfer $10K. You pay $29 for the transfer. Your payment starts at $200 per month and goes down as you pay off your debt. Around Septembet 2004 you make 2 $1 purchases every month and immediatelly start to pay interest on that $2, then $4 and so on. Let say that you paid off your balance in 50 months. In 50 months you will have added $100 in puchases on which you will paying around $13 annually in interest. Compare this to, say, 6% on your card on which you now have the $10K - $600 annually. Now you need to ask yourself a question if the difference $587 annually is worth remembering to make the 2 silly $1 purchases every month.
