You're forgotting the BT fees you're going to be paying when moving the money. Since you're moving it multiple times, you're going to be paying the transfer fee multiple times, which in the end might not save you any money than if you were to simply keep it where it's at.
There's a lot of information we don't know, such as the APR you'll experience once the 0% ends in 11/12. How much you plan on paying, or do you plan on having the entire $3500 still in 11/12? Seems like a lot of work if you plan on paying off the balances relatively soon, and you might spend more money moving the money than you'll save in interest charged.
Two problems both moves to your Citi card one will max the card out theother will put over the limit both which will have nagative effects on your score. I also do not see the point in all this moving of money.
Figure out the amount of interest you would be paying on your Discover balance once the 0% APR offer has ended. If this amount is less than the BT fees for Citi, leave the balance and go directly to your GFs Discover when she opens it. BT fees are usually 3% of the transferred balance whereas the amount of interest can be 1.08% of the balance (using 12.99% APR as reference). Just do some number crunching and figure out which costs less.
If you plan on paying the balance over the long run, then this scenario makes sense; however, if you are going to be paying the balance relatively quickly, you may actually be losing money.
Edit: BTW, lenders take into consider a lot more than just scores when deciding on limits. I would wait and see what she got approved for before moving anything. The last thing you want is to max out her newest account with your debt and lowering her score.
Is the balance on your Discover card from a BT special or an introductory 0% APR? If it is the later, then you will NOT be charged the full 18% in interest. Instead, they will just begin the 18% APR on the balance.
For example, if the 0% is from introductory, you will end up paying ~ $45 of interest on a $3000 balance. However, if the ENTIRE balance is from a BT then you would be correct about paying ~$550 in interest
I originally got a 0% offer from this Discover More for 18 months 0% on purchases and balance transfers.
I am not understanding you.
The balance of 3500 that is on my Discover more at this time is just from purchases ever since I first got the card.
My Discover statement says the balance subject to the 18% interest rate is 3500 if not paid by 11/2012.
I was of the mindset that if that the 3500 is not paid by the end of the promotional period, the balance would be attacked at 18%?? Am I wrong?
You only get charged accrued interest on balance transfers. If the balance is from purchases only, then you will get charged the normal APR for that balance (NOT accrued). I appologize if Im not that clear; its rather hard for me to adequately explain in text.
To further clarify, you will be charged 1.5% (18% / 12 months) of the balance in interest, assuming it is all from purchases. The promotional 0% APR for purchases is like a freebie from Discover; probably so we are willing to use the card more during that time frame.
Edit: From my calculations, you will be paying $52.50 in interest on a $3500 balance at the end of the promotional period. So, paying $137 in BT fees doesnt make sense at this point unless you plan on carrying a balance for a long time. If you can pay the balance off in about 2-3 months, you will be saving money by keeping the balance on Discover and just paying the interest charges; anything over that time frame will end up costing you more in interest than just paying the BT fees.
Do credit card companies let you transfer other people's balances onto your card? I don't know, so this is a genuine question to those who do know.