I have a new 0% credit card
Before you close your browser and stop reading, let me explain…
I have my credit card payments set-up for auto-bill pay. I make sure all of my payments go out on time and even provide a “buffer” just in case something goes wrong. About 6-months ago, I received my statement for my Bank of America credit card. The interest rate? 29.99% WHAT?
I quickly called customer service and they stated that my payment was received late. Late payments automatically cause the low interest rate to jump to 29.99% along with a $35.00 late fee. I explained to the rep when my payment was received and confirmed with my bank that Bank of America had indeed received the electronic payment on time. I called Bank of America back and was told that the payment had been 2 days late. After some arguing and “fussing” (as we in the South call it), they waived the late fee and put the interest rate back. They clearly said though that this was a one time courtesy (gee, thanks).
Flash forward to November, I again received my statement and saw a $35.00 late fee and 29.99% interest rate. This time my payment was received a day late. I again called my bank and confirmed that the payment was received a few days prior to the due date. I called Bank of America back and they refused to waive the fee or reduce the rate. I spoke with several supervisors who all said there was nothing they could do. I hung up, and immediately went online to begin looking for a new 0% rate card.
I had heard really great things about Discover and had received a few mailers from them in the past about their 0% offer card. I applied online and was quickly accepted. I also specified that my balance from Bank of America be transferred over. A week later, I received the card in the mail along with a note stating that most of the balance was transferred but that my new credit limit wouldn’t cover the whole transfer amount….hmmmm.
I called Discover card to find out why. It would seem given I currently have two mortgages and their more “conservative” recent credit practices they couldn’t do the full amount, BUT they did say they would denote my account and provide a credit limit increase as soon as they could. Ok, not perfectly happy, but most of the Bank of America balance was now on a 0% card instead of a 29.99% card. I was happy enough.
Hopefully soon Discover will bump my limit up enough to move over the entire Bank of America balance and I can have the pleasure of calling them back and closing my account.
0% Card Offers
A number of my blogging buddies offer various credit card offers on their site. I would like to consider adding a page to Gather Little by Little for 0% credit card offers. Note, I would not in any way condone using these cards for anything other than moving over higher interest rate debt. As you well know, I very much respect you as my readers and before doing this, I wanted to get your take on it. I certainly don’t want to encourage anyone to get further in debt either, but at the same time I cannot control the decisions people make, only make recommendations.
I really debated this whole thing for a while, as you well know I hate credit cards. But I really believe it just makes smart financial sense to pay minimum interest when you do have debt. Transferring your balances to 0% cards will do this for you.
Some of you will be happy to know that I cut my card up as soon as I received it. I used the boring shredder method.
Anyway, what are your thoughts? Would you be ok with me doing this? Let me know what you think, add a comment!