Would it make sense to do this?

[taffy]

I have a cc with Wells Fargo. I have 5000 on it. The interest rate is outrageous. I'm never late with a payment, have been with them forever etc. I can get a cc through my credit union at work. No cost to transfer my balance and interest free for a year. Then 9%. What are the downsides to doing this?

[mellymel]

What is the interest rate on your WellsFargo CC? It probably makes sense to pay less interest - best case scenario would be to transfer the balance and pay it off during the year it's interest free! If not, then at least you will have a lower interest rate on the balance.

[phunluvin82]

I can't think of any downsides to doing that. I have done balance transfers in the past, and I always make sure to run the numbers...how much will the transfer fee cost and how much will I save on interest...to make sure I'm coming out ahead.

If the credit union doesn't charge a transfer fee, I think it's a no brainer!

ETA: I also make sure that the new card does not charge back interest if the balance is not paid in full by the end of the promotional period...but I doubt a credit union card does back interest, that's usually more with store cards, etc.

[SuziSaysDa]

With no transfer fee, definitely. But I would do a quick calculation of the balance and payoff expectation to see how much you would save, but the small hassle of doing the transfer is probably worth the savings.