Does anyone know . . .
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Does anyone know . . .
| 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.

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