Credit Crunch | The Frugalista

Credit Crunch

by frugalista on March 25, 2008

Creditcard So in the interest of saving money, I did a balance transfer on one of my high interest rate cards. For years, I’ve been miffed at this credit card I’ve had at a big bank. I would have canceled the card, but I’ve had it since college. I cancel that card and I cancel my credit history. If I shut down that card, my credit score would plummet.

Still, I hate the card at the big bank. It’s interest rate was 11.9 percent. I know it’s not the worst but I knew I could do better. After shopping around on sites such as bankrate.com, I found a card that could do a balance transfer and give me a 4.99 percent rate for the life of the balance. Mini-yay. I can’t give myself a high five because debt is debt, low rate, high rate, it’s still money you owe someone.
I did the balance transfer, but I’m a little upset that it had a $99 transfer fee. I tried to fight the fee, but I lost that battle. Since I’ve transfered the money, the big bank has increased my credit limit by $4,000. I really don’t need a higher credit limit, I needed a lower rate. Meh.

I have one other card with a balance but that rate is 2.99 percent. I *heart* that card. It’s with a credit union so I don’t feel like they are "sticking it to me" every chance they get. But still, I look forward to the day when I don’t have ANY balances. I know that day is coming, soon. *thinks positively*

So, what’s your credit card situation? Are you happy with your rates? Do you do balance transfers? Are you one of the good people who don’t carry balances?  I showed you mine, show me yours.

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