Ok i’m clueless as to how to do calculations for APR and all. So here goes: My current card has an APR of 10.49%. I want to do a balance transfer of $1300 to another card with a 0% APR for a year, but with a 3% balance transfer fee. Am I gonna save money?
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Yes, IF you pay it off within the 0% period. Make sure you read all the fine print and conditions.
If you pay if off and follow all of the fine print rules, then yes.
1300 x 1.03 = 1339 (your new balance after the transfer)
You will have to be able to pay 112 dollars a month to pay it off in 12 months, you might want to pay more than that each month to make sure you pay it off early (like at least 122 a month).
If you are concerned about your credit score, it will take a hit when you do the new card and the balance transfer. You might just want to set a pace for paying off the card you have right now. That is a low rate for a credit card and you could have that knocked out in no time.
Go to bankrate.com and play with their credit card calculator. If you tell it how much you can pay a month, the interest rate, and the balance, it will tell you how long it takes to pay it down. Or you can pick how long you want it to take and it will give you a monthly payment. Shows you your options.