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Hi,
Very often I am getting these "convenience checks" some offer 0%APR for6 months others 3.99%PAR for the lifetime of the balance, my question is can the credit card co. change the APR at any time? Or do we have a contract if the letter says "3.99 for the lifetime of the balance"?
I'd like to use one of these checks and payoff my student loan ($21K) at 9%APR. Seems I'd save a bunch in interest, right?
I want to do these so I can remove my cosigner from my private student loan.
Ron
you should do your research on the companies and make sure that it is not a rip off, do you have the names of the companies that are offering these loans to you, maybe somebody else here would have some insight if they knew the company name.
If it is a legitamate offer and you will save the intrest, I would do it, but do your homework first to make sure that they are going to stick with what they promise in the beginning through out the life of the loan.
Even a quick phone call to one person in the card dept. can save you a big headache letter. If they asure you it is for the life of the balance then get something in writing. Better to be safe than sorry. I have a hard time believing a company would throw money out there for more than a year with no interest. How would they make out. It could very well be but please be sure to check first.
Sounds like a good idea, as long as you don't go late; the rate would then shoot up to whatever your card's default rate is--which is sure to be well above nine percent.
Good thinking Morningstar. I've heard about it being done but wouldn't have thought to mention it here on this post.
Ron,
What is the name of the company that you are thinking about doing this with, maybe we can do a little background and help you out with information that will let you make a more informed decision. Let us know please?