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alexljsanders Focus for february - learn to relax

Pay off all credit cards by 2013 (read all 26 entries…)
4 more weeks with citibank!

ok we are now down to $1249 on the citibank!! This is great news we are so close!

They offered us a 0% interest rate for 6 months if we transferred our other balance from the com bank card.

Ill have to do some research on this



Comments:

gottawonder Loves her tortoise!

What you need to consider

is what rate of interest will the account have AFTER the six months at 0%.

If you are going to keep banking with Citibank in the future, and will carry a balance on that card again, it is worth looking at the interest rate you will be living with in the long term.

If you don’t think it’s going to be a problem to get a different card later on, you could always go ahead and transfer everything to Citibank, work like crazy to pay it off in the six months, and then shop around for the lowest interest rate after that.

alexljsanders Focus for february - learn to relax

pay it off, close it

yeah if we transfer our balance to citibank for 6 months we will absolutely have to pay it off – that would be around $320 a week which is $20 more than we are doing now. Then we would simply close the account. I just did a quick comparison to the other cards and it seems like a good deal – others have a low rate for longer but i think i need the motivation to just do it, not drag it out.

Does paying off and closing accounts affect your credit in the future? Are you in the U.S.?

gottawonder Loves her tortoise!

As far as I know,

paying off a card completely is good for your credit rating.

I’m not sure about closing the account.

You could ask someone at the bank perhaps.

If you feel comfortable doing so, I know that having a credit card, using it a small amount, and being very diligent about paying that amount off every month is very good for your credit rating.


 

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