- quote -

One way to be sure is to set up automatic CC payment for the monthly
minimum directly from your checking account. You just fill out a form
from your CC company with your bank routing number and a voided check.
You can always pay
more than the minimum yourself, but this way you never have to worry
that
a late payment will ruin your plan.

I do this for all my cards, but almost always pay them off on my own.

revheck

Sorry for the late response.

Thanks for the advice John. I'm going ahead with the transfer next week.

Mike

In article <Xns956FAC53CD964MikeLollXNewsID2004[at]199.45.49.11> , Mike
<michaelloll[at]nospam.hotmail.com> wrote:

- quote -

Yes, you would save a little money.

- quote -

That is your biggest risk. If anything goes bad with this card, or
any other card that you have, you could find yourself at 21.99% or
even 29.99%. Not good. Make sure you check your credit card on-line
before each payment is due. That way, if you find that a payment
has messed up, you still have time to fix it. Don't wait for the
next statement to come out to find out that your lettter was lost
in the mail (or more likely, tripped the anthrax sensor, and was
stuck in the mail system 6 weeks to get hand-scanned).

- quote -

You can make a good ball-park estimate using simple math. $7000 at
8% interest is $560 per year, or $47 a month. $7000 at 3% interest
is $210 a year, or $18 a month. Looks like you save about $30 a
month, give or take a little. Note that the card will have a
different amortization schedule than the loan, so you cannot just
subtract the two payments. From a cash flow standpoint, the card
will let you string this out for years, but don't do that since the
accumulated interest over those years will negate any savings. You
have to pay off in the same time period (or shorter) as the current
car loan in order to realize the savings.

- quote -

It might even help your credit score. You will have a paid off
car loan, and you are showing responsible activity on your credit
card. That all works to your favor.

As far as the house goes, go to a lender and get pre-qualified today.
That way, if you have any problems, you have a year to fix them. You
also know what you should be looking for, and how much you have to
save up in the next year.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ==================

I have the oppurtunity to transfer a $7000 car loan which is currently at
7.95% to a credit card for a special rate of 2.99% until the balance is
paid off.

Currently I have no balance on said credit card, and I have no debt other
than the car loan I've just described. It seems to me like I would save
some money on this deal, right?

There are no transfer fees, and other than letting myself fall into the
"minimum payment" trap of credit cards, I don't really see the down side of
this deal. I have other credit cards if I have an emergency, and I know I
will not get stuck paying the minimum on the credit card because I just
spent the last 2 years digging myself out of credit card debt and I'm prety
confident I won't fall into that trap again. I have a budget now, and I'm
pretty responsible with my money so I'm not afraid that I will miss my
payments (thus causing the rate to go up to an astronomical percentage).

Could anyone direct me to the correct financial forumlas to figure this
out? I always seem to not find the correct formula to use when it comes to
interest.

Or am I comparing apples and oranges here?

Thanks.

Also, does anyone think that this would negatively impact my credit score?
I have an excellent credit score (above 700) and I would like to keep it
that way. I am considering buying a house in the next 12 months.

Thanks.

--
Mike