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Greg
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Dash, Got a personal finance question for you. Some of my 0% credit cards are going to start charging me interest pretty soon. I want to flip the debt over to another 0% card. Should I leave the original card open even though I don't plan on using it? Greg p.s.- Are you part of UMO? |
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Dash
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Sorry for the late response I did not see your comment. Molifeney is an outgrowth of UMO from the same people. Kinda like the new and improved UMO! Your situation is a double edged sword. From a credit standpoint it's never a good idea to close out credit card lines because it reduces your available credit capacity thereby potentially dropping your credit score. On the other hand opening new credit card lines can also have a negative impact on your credit score as it thrusts you into a new credit scoring bracket. There are several different scoring brackets that exist within the credit scoring algorithms so it's impossible to know which one you fall into. However you should be aware that every time you add new credit to your profile you're shifting yourself into a new bracket and possibly weakening your credit score. Enough technical talk, the questions that you need to ask yourself is 1) am I planning to pay off this debt anytime soon & 2) do I have a plan to pay this debt off when the 0% offer on this card expires. 0% credit card offers are ok if used responsibly, but when abused they can put you and your credit situation in a world of trouble. Double check the standard interest rate on the card that you are considering switching to, there's a good chance that it's very high (18%-27%) since they have to make up for giving you 0% interest for 6-10 months. Contact your existing credit card companies and ask them if they would consider extending you a 0% promo offer if you balance transfer to them. If approved this will put a new inquiry on your credit bureau, but it'll save you from having to open a new credit line. |
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DE
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I just got a tuition reimbursement check from my company. I am currently preparing to purchase a home and have been saving for that. I also have quite a few student loans from my undergrad years (I'm in grad school now) and the overal impact grad school loans will have on my student loan debt is minimal. My question is what should I do with the check? A)put in my savings to have more cash on hand for my home purchase B) put it on my credit cards C) put it on my student loan debt balance or D)go shopping  Thanks for any suggestions |
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Dash
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It sounds like saving for your first home is a pretty big priority. Your student loans will be there and as long as you are making the min payments, I wouldn't sweat those. The expectation is that your income will go up in the future when you receive your degree and you will be able to make larger dents in your student loan payments. With that being said I would take half of your reimbursement and put it in your home savings acct and put the other half on your credit card bill. Now is a great time to purchase a home as there are deals galore out there and knocking out credit card debt is always a plus. This way you can kill 2 birds with one stone! |
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