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Balance Transfers

 
 
Reply Mon 21 Dec, 2009 01:47 pm
My wife and I have two credit cards with a balance. One has an interest rate of 11% while the other one is soaring to 22.99%. We used these cards to make ends meet during a 6-month layoff, so the balances are $8000 and $6000 respectively. I believe that the card with the highest interest rate has such because we were late on a couple of payments. The late payments were due to the fact that each of us “assumed” the other had paid the payment. We have decided to use an automatic payment option through our bank to make sure that doesn’t happen again.
We have been told via the media that it is better to transfer balances from high interest rate cards to one that has a low rate. But the problem I am having is that I can’t get a credit card from anyone else. I tried Simmons First and Discover Card. Discover has a 0% interest rate for 12 months. Both card companies’s declined my application stating that I already have too many credit cards out with a large balance. And, every time I apply and get declined, that also goes against me. My credit score is great so bad credit isn’t the issue.
So my question to the experts is: what should I do here? How do I get a low interest rate card when I keep getting told “no?” Are there good alternatives I can explore? I’m not really excited about getting a second mortgage for this, but is that an option that should be explored? Your advice?
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Type: Question • Score: 2 • Views: 1,499 • Replies: 3
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Robert Gentel
 
  1  
Reply Mon 21 Dec, 2009 02:34 pm
@ccardflunkie,
If the stated reason for rejection is that you have high balances on your current cards it sounds like you need to get your current cards to raise your limits or pay down the balance. If you are using a high percentage of your available credit you are seen as a greater risk.
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maporsche
 
  1  
Reply Mon 21 Dec, 2009 04:27 pm
www.creditboards.com

Great website with a lot of helpful people. You may not have any options, but if you do, people over there will know about it.
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engineer
 
  1  
Reply Mon 21 Dec, 2009 09:14 pm
@ccardflunkie,
You should be able to get a much better rate by either refinancing your mortgage and taking cash out or by taking a second mortgage if you have equity. You are paying almost $200/month in interest, but if it were part of your mortgage, you would be paying $70, maybe less. Just don't let yourself breathe easy; you still have to pay that $14k back. You could add the $130 savings back into your mortgage payment.
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