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Question By
shnootre

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Should I use 0% checks to pay off a closed account?
I have a closed credit card account with a balance of about 3.8K. I have been paying it off monthly, but usually not much more than the minimum. At 13% APR or so, I'm paying about $45 in interest. I also have an open credit account with zero balance, and I just got checks from them to pay off other debts at 0% for 13 months. My credit limit on that card is $5K. So if I pay off the 3.8, I'll go from 0% credit utilization (since the closed card doesn't count) to well more than 50%. I know my credit score will take a big hit. But I'll save a lot of $ and be able to pay off the card faster. (and if I don't pay it in the introductory period, it just goes back to my regular APR on the open card, which is 12.3%). Advice?

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Top Contributor
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If you can pay off a derogatory, you should.  You could even contact that credit card to see if you can negotiate a settlement.  Even better, negotiate a pay for delete if that is an option.   The interest rate wouldn't be that much of a factor on the new card.  A Wise credit person would make sure it was paid off in the 13 months allowed.  On a side note, discuss with the new credit card company to ensure they will honor the account transfer, they have many limitations they apply to use the 0% transfer option.

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