Transfer or pay it off?Q A I currently have a Visa card with a $1,500 balance and a 10.9% interest rate. I'm I'm Contraction of I am. Our Living Language Speakers of some scattered varieties of American English sometimes use I'm instead of I've or I have in present perfect constructions, as in considering obtaining a Visa with my credit union with a rate of 8.9% and transferring the balance. Would this negatively affect my credit score? Would it be better to use my savings to pay off the balance? N. Powell Via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the If you have enough savings, it is always better to pay off your debt. This will improve your credit score and save you the monthly 10.9% interest you would have to pay on any balances. Over the course of a year, those interest payments add up to hundreds of dollars. It may also be beneficial for you to obtain the lower interest rate credit card from your credit union. This will save you a few dollars in interest on any future credit card purchases, and it is always better to obtain a lower interest credit vehicle before you really need it. If you obtain the credit union card and transfer the balance from your original Visa, it would be viewed as a payoff of your original Visa card, which is favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. , and will not hurt your credit score. If the balance transfer includes a promotional zero interest rate, you could then pay off your debt over a period of months without incurring in·cur tr.v. in·curred, in·cur·ring, in·curs 1. To acquire or come into (something usually undesirable); sustain: incurred substantial losses during the stock market crash. 2. interest. Paying off the balance of your new credit union card would also be viewed as responsible debt handling--another plus for your credit score. However, the addition of a new line of credit could also hurt your credit score. Mail you money management question to Money Matters, BLACK ENTERPRISE 130 Fifth Ave AVE Avenue AVE Average AVE Alta Velocidad Espanola (train between Madrid and Seville) AVE Alta Velocidad Española (Spanish: High Speed Train) AVE Audio Video Entertainment AVE Advertising Value Equivalent ., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011 or send an e-mail to scottm@blackenterprise.com. |
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