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Frequent Contributor
RSCo
Posts: 472
Registered: ‎02-11-2013
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When Paying Off Credit Cards With A Balance Transfer.......

I just did a balance transfer FROM a credit union credit card TO Discover and a couple other credit card companies, and the credit union sends them a check.... Do you think the credit card company that's being paid tracks in their system that it was a check from another credit card company? Or, does it just appear as a regular payment?? I wonder if they count it against you if they know it was a balance transfer type payment.
Citi Hilton Honors: $25,000 -- Amex PRG: $NPSL -- Citi TY Premier World: $9,880 -- NWFCU: $7,500 -- Citi Home Depot: $7,000 -- Citi AAdvantage Platinum Visa Sig: $5,000 -- Visa Black Card: $5,000 -- Discover IT: $5,000 -- AmexTrueEarnings: $5,000 -- Amex Gold Delta: $4,500 -- Pottery Barn: $4,000 -- Ethan AllenGE: $4000 -- Chase Slate: $2,500 -- CapOne Platinum: $2,500 -- CapOne Platinum: $2,500 -- AmazonGE: $2,200 -- Barclays BJs: $1,800 -- WalmartGE: $1,500 -- PenFed LOC: $500
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enharu
Posts: 6,889
Registered: ‎02-27-2013
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Re: When Paying Off Credit Cards With A Balance Transfer.......

I am not too familiar with this, but they probably will have record of it being a balance transfer since check images are nowadays scanned and saved.

 

Whether they care or not.........I doubt it. They're getting paid....don't see why they would care. Money is money.

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
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jakemod1
Posts: 173
Registered: ‎01-26-2013
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Re: When Paying Off Credit Cards With A Balance Transfer.......


RSCo wrote:
I just did a balance transfer FROM a credit union credit card TO Discover and a couple other credit card companies, and the credit union sends them a check.... Do you think the credit card company that's being paid tracks in their system that it was a check from another credit card company? Or, does it just appear as a regular payment?? I wonder if they count it against you if they know it was a balance transfer type payment.

Yes, it does show as a "transfer payment" through both parties. IMO, they don't count it against you since it is a valid payment. Your CR and your payment history (making on time payments) with them is what your lenders review.

Discover IT: $7,500 | Chase Freedom: $5,000 | Chase Sapphire Preferred: $7,000 | AMEX BCE: $6,000 | BoA BankAmericard Cash Rewards: $2,500 | Cap1 VentureOne: $5,000 | GECRB Chevron: $3,500 | Macy's Store: $4,200; Macy's AMEX: $6,000 | Best Buy: $500 | Kohl's: $2,000
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youngandcreditwrthy
Posts: 6,211
Registered: ‎08-16-2012
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Re: When Paying Off Credit Cards With A Balance Transfer.......

I don't think they can tell honestly..
They always just show up as "electronic payment" on my statements
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RSCo
Posts: 472
Registered: ‎02-11-2013
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Re: When Paying Off Credit Cards With A Balance Transfer.......

Thanks everyone for the info...  I was just curious at during times when you request a CLI, do they look back to see how many times payments were actually balance transfer payments..   My 61 day CLI request with Amex is coming up and I've used the card a lot since getting it and while I've paid hundreds more than the min payment required each time, I've also just sent a 1,200.00 payment to them in the form of a balance transfer that came from another credit card..

Citi Hilton Honors: $25,000 -- Amex PRG: $NPSL -- Citi TY Premier World: $9,880 -- NWFCU: $7,500 -- Citi Home Depot: $7,000 -- Citi AAdvantage Platinum Visa Sig: $5,000 -- Visa Black Card: $5,000 -- Discover IT: $5,000 -- AmexTrueEarnings: $5,000 -- Amex Gold Delta: $4,500 -- Pottery Barn: $4,000 -- Ethan AllenGE: $4000 -- Chase Slate: $2,500 -- CapOne Platinum: $2,500 -- CapOne Platinum: $2,500 -- AmazonGE: $2,200 -- Barclays BJs: $1,800 -- WalmartGE: $1,500 -- PenFed LOC: $500
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Chris123nTx
Posts: 500
Registered: ‎05-11-2007
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Re: When Paying Off Credit Cards With A Balance Transfer.......

It is why they all offer balance transfers. They want you to use them when you can. When they have your money transferred to their card, it reinforces their brand in your mind every month when you pay them. That and some samller percentage of people will do a bt under a 0% offer, but not pay it off before the offer ends, thus making them money. My pop psy opinion of the day.
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RSCo
Posts: 472
Registered: ‎02-11-2013
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Re: When Paying Off Credit Cards With A Balance Transfer.......


Chris123nTx wrote:
It is why they all offer balance transfers. They want you to use them when you can. When they have your money transferred to their card, it reinforces their brand in your mind every month when you pay them. That and some samller percentage of people will do a bt under a 0% offer, but not pay it off before the offer ends, thus making them money. My pop psy opinion of the day.

So they are banking on the fact that you may not pay it off before the promo period has expired and therefore they start making money on fin charges? 

 

Citi Hilton Honors: $25,000 -- Amex PRG: $NPSL -- Citi TY Premier World: $9,880 -- NWFCU: $7,500 -- Citi Home Depot: $7,000 -- Citi AAdvantage Platinum Visa Sig: $5,000 -- Visa Black Card: $5,000 -- Discover IT: $5,000 -- AmexTrueEarnings: $5,000 -- Amex Gold Delta: $4,500 -- Pottery Barn: $4,000 -- Ethan AllenGE: $4000 -- Chase Slate: $2,500 -- CapOne Platinum: $2,500 -- CapOne Platinum: $2,500 -- AmazonGE: $2,200 -- Barclays BJs: $1,800 -- WalmartGE: $1,500 -- PenFed LOC: $500
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HiLine
Posts: 2,878
Registered: ‎10-19-2012
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Re: When Paying Off Credit Cards With A Balance Transfer.......


RSCo wrote:

Chris123nTx wrote:
It is why they all offer balance transfers. They want you to use them when you can. When they have your money transferred to their card, it reinforces their brand in your mind every month when you pay them. That and some samller percentage of people will do a bt under a 0% offer, but not pay it off before the offer ends, thus making them money. My pop psy opinion of the day.

So they are banking on the fact that you may not pay it off before the promo period has expired and therefore they start making money on fin charges? 

 


I would check this thread out: http://ficoforums.myfico.com/t5/Credit-Cards/How-common-are-balance-transfers/td-p/1958033/page/2

 

Lots of great information in there :smileywink:

Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013
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Re: When Paying Off Credit Cards With A Balance Transfer.......


RSCo wrote:

Chris123nTx wrote:
It is why they all offer balance transfers. They want you to use them when you can. When they have your money transferred to their card, it reinforces their brand in your mind every month when you pay them. That and some samller percentage of people will do a bt under a 0% offer, but not pay it off before the offer ends, thus making them money. My pop psy opinion of the day.

So they are banking on the fact that you may not pay it off before the promo period has expired and therefore they start making money on fin charges? 

 


they're also banking on the fact that they extended you goodwill (interest free for xx months), and hope that in return you will appreciate them and use their services more as well. You can view it as some form of "marketing" cost.

 

JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).
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IrishPM
Posts: 181
Registered: ‎04-17-2008
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Re: When Paying Off Credit Cards With A Balance Transfer.......

My experience is that the only thing the CC company offering the balance transfer offer is the "fee" they get for the transfer....US Bank charges a 3% fee, Citi charges about the same....I've used both in the last 6 months. However, I don't use the bank to bank transfer...I write the check out to myself and deposit to my checking account and pay off the CC online. I'm still charged the "fee" but with paying online, it gets posted within 24 hours, typically, and I don't have to wait for a paper check to be sent. I've managed to pay off all of my credit cards in the last 6 months by using the balance transfer offers including paying off the initial balance transfer plus fees.


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