Beautiful offer made by CapitalOne to my wife
First, I must congratulate you and
thank you for all the help you are giving all of us who are being
taken advantage of by almost all credit cards out there.
I am having a difficult problem
with my wife trying to help see how reliable your information
is--and I would like your advice on this "fantastic" offer made to her by the CapitalOne mentioned above and make sure
that they aren't trying to "cheat her out of our hard earned
This is the offer, my wife may use
up to 5 checks they sent, starting with a $2,400.00 and four (4)
other blank checks to consolidate higher-interest-rate cards or
loans. There is a 3% processing fee for each transfer (max. of
$50.00 per transaction). They tell her to use these checks to save
with the long-term 2.99% fixed APR today. She wants to use one of
these checks to pay off my Orchard Bank account that is
approximately $1,400.00. Her current available credit amount she has
in her CapitalOne card is approximately $3,000.00. Do you think this
is a good idea to consolidate my Orchard Bank account? That's now
charging me 19.9% on my purchase balance and 21.9% on a $550.00
cash-out withdrawal I made last year for my business trip?
Please help me enlighten and
educate my wife regarding credit cards.
Thanks so much for your kind words
The offer you have will definitely
help you save money! However there is a DebtSmartŪ way to do the
You mentioned the 3%, but not more
than $50, per-transaction fee for each check. To avoid multiple fees
you should write the check out to yourself, deposit it into your
checking account, and write checks from your checking account to pay
off other accounts. I know you only mentioned the Orchard Bank
account, but I just wanted to pass along that tip in case you need
more cash. You don't want to write two checks and get hit with two
That said, and assuming that the
2.99% fixed means fixed until the balance is paid, then this deal
saves you money. Also, be sure that you don't have any balance on
the CapitalOne card before you make the transfers. Otherwise your
payments would go to the low rate (2.99%) and effectively lock in
the other balance at some higher rate.
Here are the details of your savings
given the following conditions:
have a $0 balance on the CapitalOne card
have a $1,400 balance on the Orchard Bank account with a
weighted APR of 21.2% (some at 19.9% and 21.9%).
make monthly payments of at least $30.
cost to repay the Orchard Bank card is $2,981 in 100
cost to repay the CapitalOne is $1,541 in 52 months.
saved by using transfer offer, given the above conditions, is
Note: Don't be late paying
CapitalOne! They probably have a penalty rate for being late that is
worse than Orchard Bank's current rate!