If I created a credit card with 1% interest would you apply?
@gitfiddleplayer (10362)
United States
July 25, 2008 11:20pm CST
This discussion goes along with my previous post, "What would you do if you could be debt free?" If you didn't respond to that one, jump on over and let me know. This one isn't part two but it goes along with that thought. Imagine if you could dump all your consumer debt onto a credit card with 1% interest, would that sound enticing? Do you see any drawbacks, kinks, or pitfalls? I'm willing to coax you or deter you, sell me why or why not.
10 people like this
25 responses
@ruby222 (4847)
•
26 Jul 08
I dont know!!the answer is plain and simple,not knowing anything very much how credit cards work ,and the interest charged im a bit in the dark here,but im assuming its a good deal that you are offering here.The problem with the credit cards seems to be the fact that the balance is hard or nigh on impossible to clear!!
@gitfiddleplayer (10362)
• United States
26 Jul 08
Your balance would be the deciding factor, 1% of 50,000 is 500.00 a month, something to think about.
2 people like this
@jtr115 (722)
• United States
27 Jul 08
That sounds tempting, but it would be better to create a credit card with warning statements on the back. Things like: "It's a credit limit, not a spending goal" or "This isn't actual money, but your repayment will be."
If there was a credit card which actually offered 1% (no limited time offers, no catches, etc.) I'd love to have it. Unfortunately, the banks couldn't afford to offer something like that.
3 people like this
@gitfiddleplayer (10362)
• United States
27 Jul 08
Those are some great quotes, maybe buyers would think twice before using the card. Banks could afford to offer it, but they never would, it would mean that everybody would have access to the same things. Money is power.
3 people like this
@ANTIQUELADY (36440)
• United States
26 Jul 08
no, i wouldn't take the deal. i don't use any credit cards, don't want any. if i can't afford something i want or need i'll wait till i can.
@guybrush (4658)
• Australia
27 Jul 08
I don't know how much interest my credit card has, because I use it rarely and pay it off straight away. I really don't like using credit - but use it only when paying a dental bill, for instance, because I don't know how much it's going to be prior to going. Credit cards are handy for that type of thing - but I'd never use it to buy goods when I didn't have the money to back it up.
3 people like this
@chunckychicken (23)
• United States
27 Jul 08
if i absolutly needed a credit card i would apply but i hate debi tand i hate borrowing money espically if you have to pay back more than you borrowed
3 people like this
@alokn99 (5717)
• India
26 Jul 08
Having learnt the hard way, I would rather have the option of the debt consolidated into a single one of 1% rather than have in the form of a credit card. The credit card would give me option of easily using those funds again that I have paid back with difficulty. Now unless I am that determined not to touch it , I would find myself still stuck in the loop.
3 people like this
@suspenseful (40193)
• Canada
28 Jul 08
Actually I pay my card off in a month, so I would not be interested unless I am making a big time purchase, like something breaks down and I have to get it. Then such a credit card would be better than going to a bank and getting a loan. If I had debt already, I would be tempted to put more debt on it. So the first idea would be the only one that I would be interested in.
2 people like this
@Monkeyrose (2840)
• Canada
29 Jul 08
Wow! Thats awesome that you pay off your credit card each month! You must have a lot of self control. My only question is why do you have a credit card then? Why not just pay with cash or debit for everything?1 person likes this
@teapotmommommerced (10359)
• United States
27 Jul 08
Before I would give you all of my information I would want to know more about the card and its limits and restrictions. When does it need to be paid off, is there any hidden fees?
Who are you to lead money a loan shark heehee
2 people like this
@teapotmommommerced (10359)
• United States
29 Jul 08
Good because I was afraid that you where connected with the mob. heehee
1 person likes this
@gitfiddleplayer (10362)
• United States
28 Jul 08
No limit, no restrictions. You can pay it off whenever you want. No, I'm not a loan shark.
2 people like this
@Monkeyrose (2840)
• Canada
28 Jul 08
YEs yes yes!!!
I have so much debt! Well I have about $17,000 worth of debt right now. Its so difficult to pay it off too. This is because Half of what I can pay off each month goes towards paying off my interest.
My car loan is 3.9 % which is really good ... but its the biggest amount of money I owe. My two credit cards are both 11.70% I struggle every month to pay my bills and my minimum payments, which on my credit cards... is at least $200 a month.
I work two jobs. This ends up being like 7 days a week work. I am always tired and can't really go out much due to the fact that I'm always tired and have no money.
My goal is to be debt free in two years so I can save for 1 year to go traveling. My debt is decreasing... however it is doing so very slowly. The 1% interest rate card would really help me out.
@Monkeyrose (2840)
• Canada
29 Jul 08
Wow it sounds like you've gone through some really difficult times! Loosing your house must have been difficult. Its sounds like you were very strong and got through it very well. Its great that you came out of it with a new understanding.
lol Tuna isn't so bad! I try to avoid eating meat so I eat a lot of tuna etc. My one achilles heal is eating out. I get cravings and I just have to have the food. I work at Starbucks so I am constantly surrounded by food to eat and buy. I think I'm going to have to start leaving my debit card t home.
I would really like to sell my car but the hassle of doing so is too great for me to fathom right now. Plus I didn't really take good care of it and I won't get that much for it. After I get back from my road trip in AUgust (I promised my mom we could use my car) I think I'm going to uninsure it. This will save me $150 a month.
One of my credit cards got cut off last year because I got a demotion and could not pay it for 3 months. Thankfully they did not go to the credit bureau. I could get it unfrozen if I wanted to but I'm leaving it frozen so I can't use it. My plan is to pay it down enough so I can transfer my balance from the other one onto it and then cancel the other one.
Thanks for your words of encouragement and your advice. I'm glad to see there are some people out there able to live debt free.1 person likes this
@ellie333 (21016)
•
28 Jul 08
Hi Monkeyrose, I haven't always been as I did have a mortgage and that is one great big one but in the early 90's when recession hit I lost the house and repaid the difference in negative equity and from that moment on vowed I would never borrow. Everything is on direct debit and some months I really struggle but we will have pasta and tuna and mayo as a dinner instead of meat until the end of month. I live quite frugally but am happy and enjoy life without major financial worry. I really hope you achieve your goal of being debt free with two years. Even with my car I sold my old one and waited a few weeks without a car until I got enough together to put my new but used model on the road. Just a thought my friend got into trouble financially when she was emporarily out of work last year and spoke to citizens advice and they managed to put a stop on the interest incresing on the credit cards and she now just pays a set amount to clear, it means she can't use her cards but doesn't struggle with extra interest going on all the time, this may help, even if you stop using one and get interest frozen. Ellie :D
2 people like this
@paid2write (5201)
•
26 Jul 08
Yes, even if it was only for a limited time period, it would be worth doing a balance transfer to that card and then I would try to pay if off more quickly.
I have done this several times when I have been offered lower interest, or 0% interest on a balance transfer for a short period or until the balance has cleared.
When I have cleared all the debt from a credit card and have not used that card for a period of time, I often get special offers of low or zero percent to get me to start using it again. If it's only for a limited period I will pay it off before that period ends so I don't have to pay the higher rate of interest after the offer has ended.
@frankiecesca (2489)
•
26 Jul 08
Well all my debts now are 0% as all the interest has been stopped and I just pay them all off to get rid of it so I would have to say no for that reason! However it it was that I was paying interest then yes I would transfer onto a 1% card! x
@Wizzywig (7847)
•
26 Jul 08
In terms of credit cards, it wouldn't make much difference what the interest rate was because I dont put anymore onto the card than i can afford to pay off in full by the due date. However, if I could put my mortgage onto a 1% interest rate that would be well worth while!!
2 people like this
@gitfiddleplayer (10362)
• United States
26 Jul 08
Sorry, no mortgage. You wouldn't be able to write off the interest.
1 person likes this
@hindichinese (748)
• Philippines
1 Aug 08
Nope!!! I would not apply for any credit cards. I'll just work hard to be able to pay my debts rather than having another debt, It can really pull us down.
Try to read my blog And read the "You CAn be Rich"
here's the link
http://www.nemreyleonilgapol.blogspot.com
Hope this can help you.
2 people like this
@gitfiddleplayer (10362)
• United States
1 Aug 08
Thanks, I read it, very well written.
1 person likes this
@freak369 (5113)
• United States
30 Jul 08
i think a 1% card would be a good idea but you would have to have a lot of fees attached to it in order to make any money off of it. Then again, if you had a million people sign up for it and not pay off the balance at the end of the month you would / could make a nice little profit from it.
2 people like this
@awonderfullife (2893)
• United States
26 Jul 08
Well git, if I had bad credit I would say yes. But people with good credit can always get 0% balance transfer offers, so I woudl try to get the 0% offers.
One question about your offerm can I dump my mortgage payment into it? Now 1% for a mortgage payment, that would be good!
2 people like this
@gitfiddleplayer (10362)
• United States
26 Jul 08
Good thinking, good credit gets better offers anyway. Sorry no mortgages allowed.
1 person likes this
@kaiwah (124)
• Malaysia
1 Aug 08
Its 1% per annum or monthly? Definitely 1% per annum is an attractive package as compared to 15-18% per annum offered by most of the issuing banks which is very high.
Given the choice, I will choose the 1% package as it helps to save the interest charges. It is also useful to consolidate all the debts into a single 1% interest package as it helps to eliminate high interest charges.
2 people like this
@ellie333 (21016)
•
28 Jul 08
Hi Gitfiddleplayer, I for one have never had a credit card and never will even at 1% as I am the type of person if I haven't the money in the bank or my purse I will go without or save until I do have earning interest on those savings. So however low I would still say no. I live within my means and yes I can actually say that I am debt free. Ellie :D
2 people like this
@Monkeyrose (2840)
• Canada
28 Jul 08
Wow you are really smart! Thats awesome that you can say that you are debt free. I don't think a lot of people in this day and age can say the same thing. I know I can't.
I've been in debt since I've gotten a job at the age of 17... my parents loaned me money to buy a snowboard.. I paid them back in 6 months... but it was a bad start.
1 person likes this
@bbjwlsn (263)
• United States
26 Jul 08
Where do I sign up? LOL I would take the offer in a heartbeat, as long as the 1% interest applied to all my debt until it was paid off. I see no downside to this offer, unless, like all credit offers, there was a hidden catch in there somewhere. I would certainly have to read the fine print carefully.
2 people like this
@gitfiddleplayer (10362)
• United States
26 Jul 08
The fine print is always called the red herring. That is the most stinkiest, smelliest fish alive. No catch, 1%.
1 person likes this
@tigger44 (144)
• United States
30 Jul 08
Well I have never been in debtbefore and I dont have a credit card. I prefer to pay for things in cash if I dont have it then I do without. But, your idea seems to be a good one. You should see if you could really get that going. You ll make a lot doing that.
2 people like this
