Smart Idea?

[94DOHCDELSOL]

Ok, so here is the thing. I currently have an Auto Loan for $18,000 (it was initially $23,000). I am paying 7.25% APR, which seems high for me. I do not have any CC debt, but have $25,000 available through different cards, and many of them offer 0% for 12 months....then 3.99% until paid off after that if I do a balance transfer. My question is...should I switch the amount to my Credit Cards, knowing that I have about 4 years to pay (I probably will not pay it off in less than 3 years). I have a decent credit score (726), and am afraid that this will negatively impact it. Any suggestions?

[TIM TIM TIM]

I wouldnt, just leave it how it is.

[TampaDude]

Transferring installment debt to revolving debt will lower your scores...don't do it.

The opposite, however, is a good idea. Pay off those credit cards!!!

[Joe]

the problem is you would be "maxing out" some of your cards to do this. Not a good idea for your FICO score.

Another problem is that if you paid ONE payment late on a CC, the interst will automatically jump to either 21% or 23%.... not a good thing on such a high balance. If you pay late on a car payment, the interest doesn't change.

Also, simple loans are good for your score. Payment history is king.

Keep it as is... unless you can refinance it for a lower interest loan.

[1Fast AWD]

+1 for Joe's response. Could not have said it better.

[clear]

+2 for Joe, you can probly get a little lower rate, but just make sure that refi wont actually make you pay more in interest.

http://www.bankrate.com/