Balance transfer to a credit card with no balance.

[Kyva]

Hi,

Background:

I applied for chase CSP and put 4k transactions on the card (prepay insurance, electricity bills etc). First payment will be due on the first week of April and I am currently applying for alliant credit union 0 fee 0% balance transfer. 

Question:

The plan - to avoid paying interest in case the balance transfer comes after the first payment due date - I can pay CSP in full while waiting for the balance transfer to deposit. After the balance transfer is done I would then have a 4k (negative) balance on the CSP which chase would have to write me a check for. Would this work?

Thank you.

[Anonymous]

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@Kyva wrote:

Hi,

Background:

I applied for chase CSP and put 4k transactions on the card (prepay insurance, electricity bills etc). First payment will be due on the first week of April and I am currently applying for alliant credit union 0 fee 0% balance transfer. 

Question:

The plan - to avoid paying interest in case the balance transfer comes after the first payment due date - I can pay CSP in full while waiting for the balance transfer to deposit. After the balance transfer is done I would then have a 4k (negative) balance on the CSP which chase would have to write me a check for. Would this work?

Thank you.

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Not a good idea.  Credit card companies do not like writiing large checks back to their customers.  No reason to draw attention to a brand new account.  Better idea is to pay Chase off in full and use a BT check to deposit the $4K back into your account.

[NRB525]

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@Anonymous wrote:

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@Kyva wrote:

Hi,

Background:

I applied for chase CSP and put 4k transactions on the card (prepay insurance, electricity bills etc). First payment will be due on the first week of April and I am currently applying for alliant credit union 0 fee 0% balance transfer. 

Question:

The plan - to avoid paying interest in case the balance transfer comes after the first payment due date - I can pay CSP in full while waiting for the balance transfer to deposit. After the balance transfer is done I would then have a 4k (negative) balance on the CSP which chase would have to write me a check for. Would this work?

Thank you.

---

Not a good idea.  Credit card companies do not like writiing large checks back to their customers.  No reason to draw attention to a brand new account.  Better idea is to pay Chase off in full and use a BT check to deposit the $4K back into your account.

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+1 Not a good idea.

Try this instead: Make a payment of at least the minimum payment to the CSP, on time, preferably a little more since you ultimately have to pay the balance anyway, then let the remainder sit on the CSP.

When the Alliant account is available, do the BT to pay most or the rest of the CSP. Then round it off with the remainder as a cash payment.

You'll have maybe two weeks of interest on maximum $4,000 at what, 16% annual? $25 to $30 of interest cost?

[UncleB]

I honestly wouldn't try it... there are just too many things that could go wrong. 

Actually, to clarify, there are a couple of very specific things that could go wrong (account closed, funds in 'limbo'), but the number of moving parts in what you're describing makes it risky.

[noobody]

I agree with irish80, pay minimum, then BT.