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I did it! I got approved!

January 20th, 2007 at 05:23 pm

When I called last week to see about lowering my interest rate the CSR said it was as low as it could be right now. He asked if I wanted to do a balance transfer and I rather jokingly replied that I only have the one card with a balance so if he knew a way to shift a portion of the 14.24% interest rate to the 3.99% balance transfer rate I would be all for it. His response was to see if I qualified for a debt consolidation loan with Citi. He really wanted me to get the full amount, $25k but I stood firm at the amount on my credit card, $18k. Roughly $16k is at 14.24% and the other $2k is at 3.99%.

I got the approval in the mail yesterday for the full $18k! The rate is 10.9%, it's stretched over 60 months with a payment due of approx $391. Normally I pay $523 on my CC1, so I wouldn't change that amount. There is no prepayment penalty.

The plan then is as follows. Wait until the check almost expires, it expires 30 days after 1/12, to deposit it. That way I pay off as much of the 3.99% balance as possible. Deposit and pay off CC1. Wait until I get a statement that says I owe $0 on CC1. Then check and see if I still have a balance transfer offer for 3.99%. If I do, request the full amount of my other consolidation loan that's currently at 14.4% and transfer it to the 3.99% BT rate. I'll still pay the $270 I normally pay on it but it should get paid off a lot faster.

That's at least how it would work in my head. If at the least I just shift off CC1, that will be an improvement.

It's something to ponder. I haven't cashed the check yet.

4 Responses to “I did it! I got approved!”

  1. LuckyRobin Says:

    Just be aware that the check has to post by a certain date, not just be cashed. Don't wait too long.

  2. LuckyRobin Says:

    Oh, and congrats.

  3. ldyfaile Says:

    LuckyRobin: Ohh I didn't even think about the posting part. Hmm. 30 days will be 2/10 and I was planning on cashing it 2/5 or 2/6. Wonder if that'll be enough time.

  4. LuckyRobin Says:

    I'd go with at least a week. 10 days would be safer.

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