Time to let credit card companies cut you some slack on the relentless high interest of your student loans (6.8-11%)!
I personally have used SLATE, freedom, and discover in the past; glad to see so many good options.
For those who are looking to save money on student loan interests and to deal with the least amount of hassle, i recommend this card (it is ranked #9 on the credit karma top 10 cards).
The math is simple. After getting charged 3% on the transaction amount, you get to ride the interest free for 21 months/ 1.75 years. This makes the effective interest rate of this balance transfer offer 1.71% annually, about the rate of inflation. In other words, you are really borrowing this money for free. So why not use this and write a check to your student loan servicer and pay down your student loan DRAMATICALLY? and enjoy the big saving of nearly 5.09% per year in interest (assuming your current student loan interest rate is 6.8%)?
Now, for someone who’s a pgy2 in internal medicine, the 1.75 years of 0% interest of this balance transfer (or effective interest of 1.71%) will last until you become an attending, where you can afford to pay off the credit card balance in 1-2 paychecks before it kicks into high gear post-promotional interest rate! Alternatively, in 1.75 years, you likely can make another couple credit inquiries for subsequent balance transfer offers to move the balance from this card to the next greatest and lastest.
The number one principle of taking advantage of balance transfer or promotional purchase rate is:
YOUR TOTAL DEBT NEEDS TO DECREASE!
Shifting money around to get a lower interest rate allows you to pay down your debt principle FASTER, not more slowly of false sense of security.
If you have the diligence and discipline to manage your money honestly and cautiously, these credit card deals can save you 10’s and 1000’s in interests.
Great For: Personalized concierge services and deals on entertainment.
- Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 11.99%-21.99% based upon your creditworthiness.*
- There is a balance transfer fee of either $5 or 3% of the amount of each transfer.
- Citi Easy Deals(SM) Get what you want for less. Earn Citi Easy Deals Points for the purchases you make with your card. Redeem your points for great online deals on name-brand merchandise, gift cards and even local deals.
- Let our 24/7 concierge service help book your hotel rooms, flights and more.
- $0 liability on unauthorized purchases and Citi® Identity Theft Solutions.
- No annual fee*
Do your homework and pick one or a few that you like the most and have at it: save on interests, make cash back, and pay down the principle of your debt FASTER with wasting less money in paying interest!
Best of luck and let me know how it goes for you.
Disclosure: I do not get any financial compensation for you opening a credit card with any credit card companies.
Comment below to share your experience and ask questions.