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To clarify, you’re looking to consolidate your debt? If so, I think it’s a great option. You just need the discipline to pay it off.
If you’re consolidating debt and will pay this off in the 2 years then it’s a great idea.
The way I read the OP, it sounds like you spend around 5k a month on your credit card and you’re looking to max out whatever limit they give you. Then you’d wait to pay it off until the end of the two years. If this is what you’re looking to do then I absolutely wouldn’t do this.
Mentor
OP mentioned $20k for 2 years, so around $1000 after tax.
Whether that’s worth the effort, and hit to credit score, i agree is debatable, but some folks might go for it.
Mentor
So 0% APR for 24 months… if you payoff your credit cards every month, then the 0% offer is mute, because you wouldn’t be paying interest on your credit cards every month anyway… if you don’t pay them off, then a balance transfer can make sense, but there’s usually a fee associated with it (usually 2%-3%, unless there’s a prevailing promotion)… still worth it depending on the interest on your other cards…
I wouldn’t suggest using the promotion as a reason to let the balance sit… it just creates a balloon payment at the end, and the intrinsic value of investing or saving money elsewhere is marginal… and it’s a bad money habit…
As far as your line of credit… you won’t know until you apply… but typically what’s evaluated is your open lines versus your payment history and income… each creditor evaluates the extension of credit differently, so you may get approved for $5K, you might get approved for $30K… there’s no way to really know…
Don’t see any other catch with this unless they would ask to pay interest after 2 years even if I paid off the balance. And may be my credit score falls much lower due to high balance.
Mentor
Yes, I have done this. Though with rates lower I’m probably going to slow down, as there is less benefit. (2 years is a nice length though)
It is like an interest free loan.
The limit amount will likely be similar to other cards, though if I remember correctly BofA offer a little lower than Chase
If you go to 90%+ of the limit then it will ding your credit score pretty hard, even if you pay off all your other cards, though that will bounce back immediately when you pay it down.
Mark the date for the 0% on your calendar, and pay it by then, and you’ll pay no interest.
In my experience, cards with 0% APR rate offers typically do not extend very generous credit lines initially. That makes pretty obvious sense. But YMMV.