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It's not a bad idea but it depends on how low the bank interest is.

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Q: Is it a good idea to take a bank loan at a lower interest rate to pay off a credit card if you close the credit card account when paid off?
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Will closing a 16 year old credit card account with an excellent payment history and a 18500.00 credit limit in order to get a card with a much better interest rate affect your credit rating?

Closing a 16 year old seasoned credit card account with an excellent payment history will NEVER improve your credit. As a matter of fact, opening a new credit account will also temporarily reduce your score. If you need a lower rate, call your current credit card company and request it. It is a much better solution that can save you money on interest. The following link can show how to request a lower interest rate on your current credit card account.


You just finished paying off your credit card should you close the account?

Closing the account will remove the temptation to spend up the cards again but, closing the account can actually lower your credit score. You ought to take that question and your private credit information to a credit counselor for a better answer. By the way, CONGRATULATIONS on paying off the cards!


When you transfer a debt from one credit card to another one with a lower interest rate is it best to cancel the old card does it appear as a debt on new credit report even if it is paid off?

If card is paid off, there is no longer a debt existing on that account. The debt is a 0 balance. Keep the account open anyway , even though you do not use it! This helps your credit score stay up. If you close an account that you no longer use, your credit score drops a bit & loses some points. So no, do not close an account even when it is paid off. It reflects good on your credit report. If you have to, cut the card in half, to keep yourself from shopping with that card.


For a person of average credit would American Express have a lower interest rate than other credit cards?

Yes, they will have a lower interest rate for someone of average credit. Most cards have around 2.5% interest while American Express has 1.9%.


How can one transfer a credit balance?

Typically, people consider transferring high interest rate balances to a credit card that offers a lower interest rate. The best way to accomplish this is to contact the lower rate credit card company and set up the transfer (this is a relatively quick process). This company will ask for the higher rate credit balance and assist you in transferring. After you get a notice that the transfer is complete, you can close your higher rate credit card.

Related questions

Will closing a 16 year old credit card account with an excellent payment history and a 18500.00 credit limit in order to get a card with a much better interest rate affect your credit rating?

Closing a 16 year old seasoned credit card account with an excellent payment history will NEVER improve your credit. As a matter of fact, opening a new credit account will also temporarily reduce your score. If you need a lower rate, call your current credit card company and request it. It is a much better solution that can save you money on interest. The following link can show how to request a lower interest rate on your current credit card account.


If you close open accounts will your credit score go up?

NO! THE OPPOSITE HAPPENS, YOUR CREDIT SCORE WILL LOWER. KEEP YOU ACCOUNTS OPEN EVEN IF YOU HAVE A ZERO BALANCE. NEVER, CLOSE AN ACCOUNT IF YOU CAN AVIOD THIS.


What company has the lowest interest credit cards?

Interest fees vary depending on the credit card company. Most companies apply interest based on your credit score and credit history. To obtain a lower interest rate, increase your monthly payments or make payments more frequently. The more payments you make the lower your interest will be.


You just finished paying off your credit card should you close the account?

Closing the account will remove the temptation to spend up the cards again but, closing the account can actually lower your credit score. You ought to take that question and your private credit information to a credit counselor for a better answer. By the way, CONGRATULATIONS on paying off the cards!


When you transfer a debt from one credit card to another one with a lower interest rate is it best to cancel the old card does it appear as a debt on new credit report even if it is paid off?

If card is paid off, there is no longer a debt existing on that account. The debt is a 0 balance. Keep the account open anyway , even though you do not use it! This helps your credit score stay up. If you close an account that you no longer use, your credit score drops a bit & loses some points. So no, do not close an account even when it is paid off. It reflects good on your credit report. If you have to, cut the card in half, to keep yourself from shopping with that card.


Where can I apply for the lowest interest credit cards?

The lowest interest rates on a credit card are made when the person has a good credit rating. The higher the limit, the lower the interest rate also.


For a person of average credit would American Express have a lower interest rate than other credit cards?

Yes, they will have a lower interest rate for someone of average credit. Most cards have around 2.5% interest while American Express has 1.9%.


Is savings account interest accrued and posted monthly?

It depends on the terms and conditions etc of the type of savings account. Some savings accounts have interest calculated monthly (on daily balances), and credit the amount of interest to the account monthly. Others do an annual calculation of interest, also based on daily cleared balances, but only credit the account once a year. If interest is credited each month, each subsequent month you also get interest on the interest previously credited to the account. Alternately, if the interest is paid/credited only annually, the sum credited is the total interest for the year. Interest rates are quoted taking these factors into account. An account which credits interest monthly will always pay a slightly lower Gross rate of interest than an account that has an annual interest period. This is to take account of the fact that the return on an account where the balance is increasing monthly (due to interest being added each month) will always give a higher return in the year compared to an an account with the same Gross interest rate, but which is calculated and credited only once a year.


How would you go about converting over from a high interest credit card to low interest credit cards?

First you should run a check of your credit score to see if you qualify for a lower interest rate. If your credit is in good shape many companies are willing to let you put existing debts on a new card with a lower interest rate.


If you were to negotiate a lower interest rate on your credit cards would that affect your credit?

it can be possible because it depends on your credit.


How can one transfer a credit balance?

Typically, people consider transferring high interest rate balances to a credit card that offers a lower interest rate. The best way to accomplish this is to contact the lower rate credit card company and set up the transfer (this is a relatively quick process). This company will ask for the higher rate credit balance and assist you in transferring. After you get a notice that the transfer is complete, you can close your higher rate credit card.


Why does a person keep transfer credit card balance to another before it catches up with him?

To transfer from a high interest credit card to a lower interest credit card