my credit score is 621 and i’m trying to get approved to do a balance transfer to a 0% interest APR card but i don’t think i’ll be approved due to my credit score. my current chase freedom card’s 0% interest APR just came to a close this month so i need to transfer before the 24.99% interest rate kills me. any recommendations on which card to transfer to that would allow me to pay off $2,500 worth of debt in a reasonable amount of time? preferably 18 months. thanks!
i need to transfer before the 24.99% interest rate kills me. any recommendations on which card to transfer to that would allow me to pay off $2,500 worth of debt in a reasonable amount of time? preferably 18 months. thanks!
Your stated goal is to pay off $2,500 in 18 months on a 0% offer. The absolute worst case is you stick with your 25% Chase Freedom card.
$2,500 / 18 months = $139/mo. If you stick with the 25% card, it will take 22.8 months to get to zero balance.
Suppose through careful spending and/or getting extra work or little side jobs you are able to pay $250. With a 0% offer, it's gone in 10 months. If you pay $250 at 25%, it takes 11 months.
The more you pay, the less the rate matters. If you could manage to pay $500/mo, it takes 5 months regardless of whether you have the 0% or 25% card.
1. Find a way to pay more per month. (This is the most important step.)
2. Call Chase and ask them if there are any promotions available to get you a lower rate. Politely push them for any options to lower your rate. If you want to be more aggressive, politely say you want to close the account to further charges because you're committed to paying what you owe but don't want to get in any deeper at 25%. There's a good chance they'll lower it.
3. Unless Chase gave you a 0% offer in Step 2, apply for a 0% offer to see if you get it.
I successfully get better deals using Step #2 in the late 90s when I was in this situation. If I could send advice back in time, though, I'd tell myself to pick up more hours bagging groceries to pay it off faster rendering interest rate moot.