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I currently have a Chase card with a balance of 5800.00 with a 16.99% APR and a Credit limit at $9500.00. I also have a Capital One card with a balance of 3169.61 and a 23.99% APR. I currently pay about $70 in interest each month on the Capital one card, and with the minimum being $97, its becoming impossible to pay it down.
My Chase card is offering a 0% APR for one year with a 4% balance transfer fee. If I transfer the balance from my Capital One to my Chase card, it wouldn't max it out but it would clear up my capital one balance. Chase calculates my minimum payment as 1% plus interest, which if I calculated it right would equal just under what I currently pay on both cards monthly (minimum would be around, $223, I typically pay about $250 for both per month) . I'm assuming this would be a good idea because the transferred balance wouldn't be charged interest, yes?
Is it worth it? Given that the transfer fee would be twice one months interest, I think it would save money in the long term but I have no experience with this stuff. Do both banks charge Transfer Fees or just the bank you're transferring TO??
Thanks for any advice you can offer.