FMOOD 0035: A Trick That No Longer Works - a podcast by Tom Merlino | Tom is inviting you to follow him on his journey to get out of debt and get into prosperity.
from 2017-01-20T07:00
Remember the days when you could call your credit card company and negotiate a lower APR by suggesting that you would move the balance to a competing card if they didn't comply? I tried this recently and found out that this trick simply doesn't work. It took me by surprise.
Now, moving a balance from card to card isn't always the best idea. Especially if you think that you may keep the card open where you transferred the balance from and end up getting yourself into trouble with it all over again (in addition to the new card that you used for the balance transfer!). If you close out the other card, that's probably the best idea. Even if it dings your FICO score temporarily, it's worth it in the long run if you think that you might be tempted to run up another balance on the old card.
If you do decide to keep it to use for small purchases and pay them off faithfully, then that's your choice. The bottom line is this: moving a balance from one card to another does not qualify as paying off debt. It's a lateral move. It's neutral, not positive. Stick to the plan to continue to truly pay off debt, even if you use a balance transfer to save some money on interest along the way.
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