Refi with AMEX ballance transfer good idea?

[Roadhazzard]

I have a vehicle loan at 10.25% with GMAC with a remaining term of about 46 months, balance of 19000. I have an offer of a balance transfer from AMEX of 4.99% for the life of the balance transfer with a $75 maximum transfer fee. I do not presently carry a balance on the AMEX, and have the credit limits to do this transaction.

 

I am aware of the discipline needed to make this work, and do not anticipate a problem making my current payment to AMEX in order to pay off the loan sooner and save considerable money.

 

Do you think this would work like I think it would, or are there pitfalls I am not seeing.

 

Thanks

Edited November 15, 2006 by Roadhazzard

[MarvBear]

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[MarvBear]

IMO not a good idea to pay off secured debt with unsecured debt.

 

Utilization may suffer and impact your score significantly.

 

If you wish I can move this topic to the money management forum for more views and opinions.

[Roadhazzard]

Marv, please feel free to move this topic to wherever you believe it would be most appropriate. Right now my scores are around 760-780, and this move would put me at around 60% utilization. My balances are decreasing rapidly, so this percentage would likely fall pretty quickly. Thanks for your reply

[MarvBear]

Moving to Money Management Forum for more responses.

[GEORGE]

I have a vehicle loan at 10.25% with GMAC with a remaining term of about 46 months, balance of 19000. I have an offer of a balance transfer from AMEX of 4.99% for the life of the balance transfer with a $75 maximum transfer fee. I do not presently carry a balance on the AMEX, and have the credit limits to do this transaction.

 

I am aware of the discipline needed to make this work, and do not anticipate a problem making my current payment to AMEX in order to pay off the loan sooner and save considerable money.

 

Do you think this would work like I think it would, or are there pitfalls I am not seeing.

 

Thanks

$75 FEE IS JUST EXTRA PROFIT

 

ASK THEM TO WAIVE THE FEE or REDUCE THE 4.99% TO LIKE 1.99%

 

("IF" YOU DO IT)

[Roadhazzard]

Well, I hadn't thought of that. What do you think the liklihood of them going for it would be?

 

thanks

 

$75 FEE IS JUST EXTRA PROFIT

 

ASK THEM TO WAIVE THE FEE or REDUCE THE 4.99% TO LIKE 1.99%

 

("IF" YOU DO IT)

[GEORGE]

I HAVE NEGOTIATED BT's MANY TIMES WITH DIFFERENT BANKS

 

You just have to ask

 

APR LOWER

 

NO FEE or LOWER FEE

Edited November 16, 2006 by GEORGE

[CargoJon]

Actually, in this case I'll respectfully disagree with my esteemed colleague Marv. IMO if you can take a secured debt and make it unsecured, it's probably a good idea. God forbid the worst befalls you - if you BK or something the debt is unsecred vs. losing your vehicle.

 

However, Marv makes an excellent point about utilization. If the Amex limit is $20K, I might be hesitant. If it's $25K and I had another $75K in unsecured lines available to me, I'd probably give it serious thought...

[squirrelgirl]

I personally think its a good idea. I paid of my HEL with my Amex fixed for 3.99%. I still have all 3 CRA's at 715+ (never had scores as high was you, congrats to you on that)

[MarvBear]

LOl Cargo..... that's why I moved this over here. I am far far too biased with my opinions as it relates to automobiles.

 

I figured someone could unbias me

 

TY