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

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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.

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

Moving to Money Management Forum for more responses.

$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)

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)
[/quote]

I HAVE NEGOTIATED BT's MANY TIMES WITH DIFFERENT BANKS

You just have to ask

APR LOWER

NO FEE or LOWER FEE

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...

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)

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