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Splintey
Posts: 1
Registered: ‎05-31-2013
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Balance transfer Idea

What are everyone's thoughts on this? Currently have a $8000 car loan at 5.99% through chase auto. I'd like to take advantage of the chase slate no fee/no interest for 18 month offer but obviously Chase won't transfer one of their own accounts to a chase credit card. What if I transferred the car loan to my capital one credit card taking advantage of the no balance transfer offer then instantly transfer it back to the chase slate card? Good idea?
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flyingace
Posts: 313
Registered: ‎04-25-2013
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Re: Balance transfer Idea

Seems that it'd be easier to refinance the car instead. 

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p-
Posts: 2,655
Registered: ‎06-05-2008
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Re: Balance transfer Idea


flyingace wrote:

Seems that it'd be easier to refinance the car instead. 


+1  Check out penfed for refi - 

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SnackTrader
Posts: 1,567
Registered: ‎09-15-2012
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Re: Balance transfer Idea

This doesn't seem worth it unless you are going to pay off the entire $8,000 in the next year. But even then, if you can pay down such large balances then you might as well just keep it with this loan since 5.99% isn't that bad over 1 year.

In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

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Senior Contributor
myjourney
Posts: 26,659
Registered: ‎02-07-2013
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Re: Balance transfer Idea


SnackTrader wrote:
This doesn't seem worth it unless you are going to pay off the entire $8,000 in the next year. But even then, if you can pay down such large balances then you might as well just keep it with this loan since 5.99% isn't that bad over 1 year.

+1 

Weclome to the forum

5.99% is not a bad rate yes there are others out there but don't use a card 

Make an extra payment or two if you can 

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Senior Contributor
jsucool76
Posts: 3,806
Registered: ‎12-11-2011
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Re: Balance transfer Idea

I would definitely look into a refi before I transferred to a credit card. 

 

Either way, chase would probably be able to catch on to your BT going to an outside account, then going back into chase, and if they did, it might make it look like you're in financial trouble. 5.99% isn't that high, and if something happened and you weren't able to pay off your BT, the APR on that balance is gonna be a lot higher than 5.99 and you're going to wish you never did it. 

;
Regular Contributor
SRAGS
Posts: 163
Registered: ‎07-30-2009
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Re: Balance transfer Idea

Hi.. You can request checks for balance transfer.... and deposit in ur checking account and pay the auto loan. Try it.. I did this so many times with citi, bank of America.
Valued Contributor
SnackTrader
Posts: 1,567
Registered: ‎09-15-2012
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Re: Balance transfer Idea

Again - it is not a recommended financial move.

Interest on $8,000 at 5.99% is $479 per year.

If you BT, and you are only able to pay down half of that balance after the BT time period expires, then you would be paying interest at credit card rates. Lets assume its 19.99%.

Interest on $4,000 at 19.99% is $800 per year. So even though you just had a year at 0%, the next year you will have doubled your interest expenses on a smaller balance.

I will go out on a limb and say that it is never worth it to move an installment loan into a credit card with a balance transfer. There are rare exceptions, but the interesting thing about the human race is there are so many people, that the likelihood of you or I being the exception to any rule is pretty slim.

Don't do this. You will regret it.

In My Wallet: Amex BCP (12/12) $22.200, Cap1 Quicksilver (6/12) $14,000, Chase CSP (4/14) $12,000, Barclaycard Rewards (5/13) $10,500, Citi Forward (12/12) $9,600, Chase Freedom (12/12) $5,000

Last App: April 2, 2014
Senior Contributor
jsucool76
Posts: 3,806
Registered: ‎12-11-2011
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Re: Balance transfer Idea

Interest on a 4k balance at 19.99 is gonna be way more than 800$ a year. #ContinuousCompounding

;
Valued Contributor
p-
Posts: 2,655
Registered: ‎06-05-2008
0

Re: Balance transfer Idea


SRAGS wrote:
Hi.. You can request checks for balance transfer.... and deposit in ur checking account and pay the auto loan. Try it.. I did this so many times with citi, bank of America.

nooooooo...

 

 

12-15-14: FICO EXP: 813 - EQU:802 - TRAN: 756 - AVG: 790 +240 points from JUN 2008 - MY CREDIT JOURNAL


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