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Questionable BT Offer From Chase ?

Established Member

Questionable BT Offer From Chase ?

I just got an email from Chase offering a 0% BT. I wasn't considering it but this language caught my eye:

 

Once you take advantage of this balance transfer offer, you will have a new balance on your account. This means interest will be charged on new purchases you make with your credit card, unless you pay the entire balance (including any transferred balances) in full each month.

 

I take that to mean that if I transfer say $1000 and then charge $1, I'll pay interest on that dollar until $1001 is paid off. I thought the credit card act required higher interest balances to paid off first. Any thoughts ?

EX: 785 EQ: 759 TU: 760 (9/14 via MyFico)
Message 1 of 10
9 REPLIES
Frequent Contributor

Re: Questionable BT Offer From Chase ?

You would pay interest on any NEW purchases on that card.  I tend to SD my BT cards alone for the duration of the promo period as I pay it off.


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--
Homeowner since 05/29/13
Message 2 of 10
Moderator Emerita

Re: Questionable BT Offer From Chase ?

Message 3 of 10
New Contributor

Re: Questionable BT Offer From Chase ?

The way these show up on statements is "<High number> APR, Promo 0% APR Until <Some date>." Your normal APR will be lower than the <High number> APR. They say they are not violating the Credit Card Act since they are paying off the highest longterm APR (even though the balance is temporarily at 0%).

Message 4 of 10
Frequent Contributor

Re: Questionable BT Offer From Chase ?

Yep - I learned that the hard way (granted it was for a small purchase, but still).  Now anytime I do a balance transfer on a card, it is sock drawered until I PIF.  I want to use my Freedom card now but I BT onto it :\

Back to gardening as of 01-02-17.. 800+ across all three (via FAKOs) has been achieved! 5 INQs currently Smiley Happy
Message 5 of 10
Valued Contributor

Re: Questionable BT Offer From Chase ?

This isn't unique to Chase, very common among lenders.  If you have a BT promo, don't use the card.  My Freedom card is currently froze due to a BT offer on it. 

Message 6 of 10
Senior Contributor

Re: Questionable BT Offer From Chase ?


boomhower wrote:

This isn't unique to Chase, very common among lenders.  If you have a BT promo, don't use the card.  My Freedom card is currently froze due to a BT offer on it. 


+1

 

They are in compliance with the Card Act guidance and not violating any rules.  So, if you are unfamiliar with the promotional language disclosure, or would not like to get hit with an unexpected "surprise" then just use the card for the BT promo exclusively until paid off.

Message 7 of 10
Senior Contributor

Re: Questionable BT Offer From Chase ?

This is why it's important to consider a BT card that has 0% on purchases AND bts.

My freedom has 15 mos 0% on bts AND purchases, so I bt'ed some to it and still use it for whatever categories lol.
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Message 8 of 10
Mega Contributor

Re: Questionable BT Offer From Chase ?


flapjack wrote:

I just got an email from Chase offering a 0% BT. I wasn't considering it but this language caught my eye:

 

Once you take advantage of this balance transfer offer, you will have a new balance on your account. This means interest will be charged on new purchases you make with your credit card, unless you pay the entire balance (including any transferred balances) in full each month.

 

I take that to mean that if I transfer say $1000 and then charge $1, I'll pay interest on that dollar until $1001 is paid off. I thought the credit card act required higher interest balances to paid off first. Any thoughts ?


Best to take the offer and S the card until the BT is PIF if you really need to do the BT.




EQ FICO 548 3/3/16
Message 9 of 10
Highlighted
Frequent Contributor

Re: Questionable BT Offer From Chase ?

Thankfully NFCU does not do this. I BTed some cards and still use the card and only pay interest on regular purchases. Once I paid off those regular purchases (gas and dinner. some groceries) now I get no interest.

 

I like that not all cards/banks are greedy.

Currently "freezing" in the garden!
Message 10 of 10