Balance Transfers???

[Anonymous]

My brother just called me and said he owes a friend $4500 he barrowed as a short term loan.  Ahe just got approved for a citi card(not sure which one) for $12500. His friend cash advanced a card to give him the money. can he BT from his card to some eles card?  I don't want to get him in any trouble. that is why we are asking.

[SmartCookie]

I've wondered the same out of curiosity.  

What he can do is have the balance transfer issued to himself as a check.  Same transaction fee (if any) same interest rate (if any).  They will EFT it right into his checking account and he can pay back his friend.  Then he'll pay it off just like any other balance transfer.  And no, to anyone wondering, this is totally different than a cash advance.  Most CC reps know about this but if the one he gets does not, a supervisor will. 

I do it all the time between my Chase cards for big purchases when I want to lock in a rate lower than the purchase rate on the credit card.  Usually they have a no transaction offer with 3.99 ... much better than the standard APR! 

[Anonymous]

Thanks for the info. You are true to your handle...SmartCookie.

[SmartCookie]

Thanks so-confused!  Hope it helps and your compliment is very much appreciated today   

[Takunda1]

I once did a BT on my girlfriends a/c. I don't think cc care who or where the BT is going as long as they get their money back. I believe a BT also has a much lower interest rate than a cash advance.

[SmartCookie]

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Takunda1 wrote:

I once did a BT on my girlfriends a/c. I don't think cc care who or where the BT is going as long as they get their money back. I believe a BT also has a much lower interest rate than a cash advance.

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Hugely less yes.  Great to see it didn't get booted out for whatever reason.  Personally, I don't see why there would be anything illegal or unethical about it... so this is good to know that it has been done.  Thanks for the input!!!