Does anyone know . . .

iVillage Member
Registered: 04-10-2003
Does anyone know . . .
4
Tue, 08-11-2009 - 9:11am

how if impacts your credit rating to have a card really close to the max?


Some of you may remember I have an SUV loan at 9.9% (horrible). My credit card rate is only 5.9%. My goal was to pay off the CC first, and then move the car loan over (essentially making my CC my car loan).


However, the interest rate is so horrible that every $400 payment I make, the balance only goes down by $300 or so.


Bex -

iVillage Member
Registered: 11-02-1999
Tue, 08-11-2009 - 9:45am

I'm not sure how it would affect your credit rating, but my concern would be if the credit card company suddenly decides to raise your interest rate (as they have been known to do without cause). At least with the car loan, it's locked in at 9.9...

Of course, if you know without a doubt that you'll have a locked-in interest rate of 5.5% with the credit card for the duration, cutting 8 months off your original payoff time sounds great!

Good luck!










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iVillage Member
Registered: 04-10-2003
Tue, 08-11-2009 - 9:54am
I thought of that. I had called to confirm earlier that if I did the transfer it would stay at 5.9%. If they ever decided to raise it on me, I was going to just opt out and close the card (I have another I can use for emergencies). I'm not planning on buying anything huge in the near future so I don't know how that will impact my credit rating, but you never know. Stuff comes up, lol.

Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -

iVillage Member
Registered: 11-14-2008
Tue, 08-11-2009 - 12:25pm

Oh you little Fund Flipper LOL!! I like the idea. It sounds like you have a back up plan as well if they jack the rate so I say go for it. Eight months earlier is a heck of a lot sooner and that is a heck of a lot of interest money saved. Do you plan on doing another house with bf in the next 6mo? Fico should be fine after that with diligent payments.

How did things go with sis?


iVillage Member
Registered: 04-10-2003
Tue, 08-11-2009 - 12:56pm
lol fund flipping rocks! The good thing about this system is that it will take some of the stress out of life. I will make my payments and that will be that. Of course, if I happen to have a little extra here or there too boost my payments . . . Not sure what to do about sis. She came to the girls weekend and it was disastrous. She "over indulged" (shall we say) and after we all got back to the room and were asleep or almost asleep, she took off to go hang out with some guys she had just met (all the while barely able to stand without swaying). My friend jumped in a cab and went and got her. She still doesn't think she did anything wrong. I am going to contact my employee assistance people for help. I don't know what else to do. I don't know if I should tell my parents or not. :(

Bex -


"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."


Bex -