Well, I feel like an idiot. As you are aware, I am deeply into credit card debt. My current credit card balance is about $20,000. My goal is to pay this down as fast as possible. There are numerous strategies to consider. One such strategy is to apply for a new credit card with a 0% promotional APR and then transfer the balance to that credit card to avoid much of the interest charges over the promotional period. Of course, there would be a transfer fee, but that’s far less than the interest you would pay over the promotional period. Well, I applied for a new credit card and now I feel like an idiot. Let’s see why.
Capital One Quick Silver
I just applied for the Capital One Quick Silver credit card. What attracted me to the card was the no-annual fee and the 0% interest rate until April 2025. I didn’t like the approximately 30% annual APR, but I figure my account would be zero by April 2025 and so I wouldn’t have to worry about it.
Of course, when you apply for a credit card, there is a hard inquiry on your account. So, I incurred a hard inquiry.
I did get approved! I said I was retired and I stated my approximate annual income.
Well, it turns out that my credit line was only $1,000!!! Hahahaha. What am I supposed to do with that? I guess it made sense since my debt is high, but still.
I really don’t need another card. The annual APR is horrendous. So, now I am contemplating just cancelling the card when I get it. I don’t know what that’s going to do but I almost don’t care. My credit score will take a hit for about six months or so, but it’s not like I’m going to be using my credit anytime soon.
Final Thoughts
The strategy of transferring your balance to a 0% promotional credit card generally works if you’re a disciplined person. But for me, it didn’t work because the credit line I got approved for was way too low.
Plus, there danger in this strategy as well. If you’re not careful, you could end up using that new credit card as well and now have two credit card debts to worry about.
I’ll take this as lessened learned. At least I tried. The hit to my credit score will be annoying for a while but I don’t think it’s going to impact me in the long run.
In any case, I’m going to stick with my plan of paying the minimum on my Greensky credit cards during the promotional period so I can avoid interest payments. Then, any remaining amount I have, I will use that to pay down on my high balance with Chase.
We will see how it goes.
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