@UpperNwGuy wrote:If you're going to use a card for a balance transfer, don't use it for any regular spending until after the balance transfer has been paid off or transferred elsewhere and a statement cuts showing a zero balance.
An exception to this would be cards with 0% BTs and introductory 0% APRs. Taking advantage of Discover 5% caregories while having a BT or taking advantage of targeted 5% offers from Citi while having a BT Are both fine, as examples. Just make sure you have both offers first!
With scores and limits like yours there should be no problem. If there is, you have other options so no sweat
No, only on new purchases. Not sure which APR you got with yours, but let's say it's the 16.24% tier. You have a balance transfer of $2000 and make a $500 trip to BJ's every month on the day after your statement closed (for math simplicity sake). Your minimum payment is usually $40, but you pay $150 toward the BT and the $500 trip ($650 total), bringing your balance down to $1850. The next statement closes, and you again made a $500 purchase on the day after your statement closed. Because you only paid $650 and not $2500 the month before, you've lost your grace period. The $500 will begin accruing interest on day 1, so rather than your next statement being $2350, it would be about $2356.77 instead because you accrued interest on that $500 (effectively negating 1.35% of that 5% back, this is worse of course if you got the 26.24% tier). You then make a payment of $656.77 (new purchase plus interest) on the due date and don't make a new charge the next month. Your balance is down to $1700, right? No. Because you didn't make a payment until the due date 25 days after the statement date, you were still accruing interest on that $500 plus the interest, so now your next statement has $6.86 in interest from a charge you made nearly 2 months ago (another 1.37%, combining for 2.72% you've now lost of that 5% back - probably almost net zero on rewards if you have the higher tier at this point). Since you stopped charging and you made a payment of $156.86, your next statement balance really is $1550.
That was long-winded. I apologize. Hopefully that helps to explain the concept of why it's a bad idea to charge new purchases on most cards that have a purchase APR but no interest on another balance that you're unlikely to pay in full each month. You can see that if one continued to charge every month that it would just get worse and they would not be getting 5% back whatsoever when you deduct the interest paid. And to be clear, the 0% balance transfer will not accrue interest until the promotional period clearly printed on your statementy has ended.
Glad you got to experience all 4 of our seasons in one long weekend! 