topic Re: High limit balance transfer card? in Credit Cards

High limit balance transfer card?

icyhot — Sat, 25 Apr 2015 16:26:22 GMT

Everyone knows the cards with the best rewards/store cards have high interest rates. In a perfect world we would all PIF but sometimes it just doesn't happen. Do you think it would be a good strategy to have a high limit (>$10K) BT card on deck that offers 0% to transfer balances to after say a holiday shopping spree or big vacation? Would there be any drawbacks to this? Currently my credit profile won't support such a thing but something to think about for the future

Re: High limit balance transfer card?

ojefferyo — Sat, 25 Apr 2015 16:51:44 GMT

@icyhot wrote:
Everyone knows the cards with the best rewards/store cards have high interest rates. In a perfect world we would all PIF but sometimes it just doesn't happen. Do you think it would be a good strategy to have a high limit (>$10K) BT card on deck that offers 0% to transfer balances to after say a holiday shopping spree or big vacation? Would there be any drawbacks to this? Currently my credit profile won't support such a thing but something to think about for the future

Of course that would be nice, it's pretty much an interest free loan. Drawbacks...depends on the lender. Some want you to pay back as soon as possible some don't seem to mind.

Re: High limit balance transfer card?

icyhot — Sat, 25 Apr 2015 22:46:52 GMT

Wow really? You would think the whole point of a BT card is pay down balances at your pace with no penalty

Re: High limit balance transfer card?

FiveOhFour — Sat, 25 Apr 2015 23:09:01 GMT

What is a BT card please? With all the abbreviations used on this site i sometimes feel like i speak a different language

Ah, "Balance Transfer"...it clicked right as i hit the Post button

Re: High limit balance transfer card?

DaveInAZ — Sat, 25 Apr 2015 23:13:20 GMT

@icyhot wrote:
Wow really? You would think the whole point of a BT card is pay down balances at your pace with no penalty

I did a BT on Barclays Rewards to 90% of CL, and paid it off the month before the 0% was due to become 22.9%. Barclays responded with an auto CLI from $3500 to $5700.

What is a BT card please? With all the abbreviations used on this site i sometimes feel like i speak a different language

BT = Balance Transfer

Re: High limit balance transfer card?

happypill — Sat, 25 Apr 2015 23:49:17 GMT

Most BT cards have a limit on how long they offer 0% so you really need to apply for one around the time you need to use it. It's a pretty good idea, but there's a reason why lenders off 0%; it's because their statistics tell them that in the long run it will make them money when people run up balances they can't pay off. They don't stay in business giving away stuff for free.

It's a good plan if you're disciplned though.

Re: High limit balance transfer card?

lg8302ch — Sun, 26 Apr 2015 14:45:11 GMT

@icyhot wrote:
Everyone knows the cards with the best rewards/store cards have high interest rates. In a perfect world we would all PIF but sometimes it just doesn't happen. Do you think it would be a good strategy to have a high limit (>$10K) BT card on deck that offers 0% to transfer balances to after say a holiday shopping spree or big vacation? Would there be any drawbacks to this? Currently my credit profile won't support such a thing but something to think about for the future

There is a risk free way by saving upfront and you can even more enjoy your big vacation if you know there are no bills coming afterwards Start planing now!

Re: High limit balance transfer card?

TheGardner — Sun, 26 Apr 2015 14:47:34 GMT

Barclaycard is great for BT they have 0% offers a lot. The cards also grow nicely as long as you use them.

Re: High limit balance transfer card?

kdm31091 — Sun, 26 Apr 2015 14:55:39 GMT

In my opinion, it can be a double edged sword. Knowing you have those 0% offers available is only going to do one thing. It's going to tempt you to spend more. "Well, I can afford this because I have that nice 0% BT offer from so and so, so I'll just do that".

I'm not attacking you, but the best solution is to live within your means. Spend what you can afford to pay off. Treat your credit cards like debit and spend what you have enough money to pay for and that's it. Then you don't have to care what BT or 0% offers you have or can get. Just my opinion. The 0% offer will make you feel like you have a "safety net" that you don't really have because it's not your actual money. As much as savings accounts make such little money, IMO it's better to have some actual money aside for these things and not rely on 0% offers.

Re: High limit balance transfer card?

Anonymous — Sun, 26 Apr 2015 14:56:56 GMT

@kdm31091 wrote:
In my opinion, it can be a double edged sword. Knowing you have those 0% offers available is only going to do one thing. It's going to tempt you to spend more. "Well, I can afford this because I have that nice 0% BT offer from so and so, so I'll just do that".

I'm not attacking you, but the best solution is to live within your means. Spend what you can afford to pay off. Treat your credit cards like debit and spend what you have enough money to pay for and that's it. Then you don't have to care what BT or 0% offers you have or can get. Just my opinion. The 0% offer will make you feel like you have a "safety net" that you don't really have because it's not your actual money. As much as savings accounts make such little money, IMO it's better to have some actual money aside for these things and not rely on 0% offers.

Yes this is how it should be handled, however it is nice to have such a card for unplanned or emergency situations. Medical emergencies, death in the family, etc. may cause you to need to carry a balance even if you never have before. It really doesn't hurt to have it just in case, as long as you are responsible enough to not use it unless needed.

Re: High limit balance transfer card?

kdm31091 — Sun, 26 Apr 2015 15:00:20 GMT

@Anonymous wrote:
@kdm31091 wrote:
In my opinion, it can be a double edged sword. Knowing you have those 0% offers available is only going to do one thing. It's going to tempt you to spend more. "Well, I can afford this because I have that nice 0% BT offer from so and so, so I'll just do that".

I'm not attacking you, but the best solution is to live within your means. Spend what you can afford to pay off. Treat your credit cards like debit and spend what you have enough money to pay for and that's it. Then you don't have to care what BT or 0% offers you have or can get. Just my opinion. The 0% offer will make you feel like you have a "safety net" that you don't really have because it's not your actual money. As much as savings accounts make such little money, IMO it's better to have some actual money aside for these things and not rely on 0% offers.
Yes this is how it should be handled, however it is nice to have such a card for unplanned or emergency situations. Medical emergencies, death in the family, etc. may cause you to need to carry a balance even if you never have before. It really doesn't hurt to have it just in case, as long as you are responsible enough to not use it unless needed.

I understand; however, emergencies shouldn't really be something you rely on CCs for. Why not have some actual money put aside? To each their own of course and I know we all have had unplanned events where we had to carry a balance. I just feel like it's better to have some actual money to pay for emergencies vs charging up a credit card. Not to say I've never put an expense on a CC that I wasn't expecting, but it should be the exception not the rule.

Just the qualifier of "as long as you are responsible enough to not use it unless needed" unfortunately eliminates a large percentage of consumers who will use it when they don't need it.

Re: High limit balance transfer card?

icyhot — Sun, 26 Apr 2015 15:01:37 GMT

@kdm31091 wrote:
@Anonymous wrote:
@kdm31091 wrote:
In my opinion, it can be a double edged sword. Knowing you have those 0% offers available is only going to do one thing. It's going to tempt you to spend more. "Well, I can afford this because I have that nice 0% BT offer from so and so, so I'll just do that".

I'm not attacking you, but the best solution is to live within your means. Spend what you can afford to pay off. Treat your credit cards like debit and spend what you have enough money to pay for and that's it. Then you don't have to care what BT or 0% offers you have or can get. Just my opinion. The 0% offer will make you feel like you have a "safety net" that you don't really have because it's not your actual money. As much as savings accounts make such little money, IMO it's better to have some actual money aside for these things and not rely on 0% offers.
Yes this is how it should be handled, however it is nice to have such a card for unplanned or emergency situations. Medical emergencies, death in the family, etc. may cause you to need to carry a balance even if you never have before. It really doesn't hurt to have it just in case, as long as you are responsible enough to not use it unless needed.
I understand; however, emergencies shouldn't really be something you rely on CCs for. Why not have some actual money put aside? To each their own of course and I know we all have had unplanned events where we had to carry a balance. I just feel like it's better to have some actual money to pay for emergencies vs charging up a credit card. Not to say I've never put an expense on a CC that I wasn't expecting, but it should be the exception not the rule.

Just the qualifier of "as long as you are responsible enough to not use it unless needed" unfortunately eliminates a large percentage of consumers who will use it when they don't need it.

To each his own I guess. You're gonna be spending the money either way

Re: High limit balance transfer card?

kdm31091 — Sun, 26 Apr 2015 15:03:27 GMT

@icyhot wrote:
@kdm31091 wrote:
@Anonymous wrote:
@kdm31091 wrote:
In my opinion, it can be a double edged sword. Knowing you have those 0% offers available is only going to do one thing. It's going to tempt you to spend more. "Well, I can afford this because I have that nice 0% BT offer from so and so, so I'll just do that".

I'm not attacking you, but the best solution is to live within your means. Spend what you can afford to pay off. Treat your credit cards like debit and spend what you have enough money to pay for and that's it. Then you don't have to care what BT or 0% offers you have or can get. Just my opinion. The 0% offer will make you feel like you have a "safety net" that you don't really have because it's not your actual money. As much as savings accounts make such little money, IMO it's better to have some actual money aside for these things and not rely on 0% offers.
Yes this is how it should be handled, however it is nice to have such a card for unplanned or emergency situations. Medical emergencies, death in the family, etc. may cause you to need to carry a balance even if you never have before. It really doesn't hurt to have it just in case, as long as you are responsible enough to not use it unless needed.
I understand; however, emergencies shouldn't really be something you rely on CCs for. Why not have some actual money put aside? To each their own of course and I know we all have had unplanned events where we had to carry a balance. I just feel like it's better to have some actual money to pay for emergencies vs charging up a credit card. Not to say I've never put an expense on a CC that I wasn't expecting, but it should be the exception not the rule.

Just the qualifier of "as long as you are responsible enough to not use it unless needed" unfortunately eliminates a large percentage of consumers who will use it when they don't need it.
To each his own I guess. You're gonna be spending the money either way

The difference is that some people rack up balances on 0% offers which eventually expire and are left with a balance that is now accruing interest. It happens every single day. Whereas if you just paid for the emergency with your actual money, you'd be done.

I'm not saying that nobody can utilize 0% well. Of course they can, it also happens every day. I'm just saying you have to be careful.

Re: High limit balance transfer card?

Anonymous — Sun, 26 Apr 2015 15:04:03 GMT

@kdm31091 wrote:
@Anonymous wrote:
@kdm31091 wrote:
In my opinion, it can be a double edged sword. Knowing you have those 0% offers available is only going to do one thing. It's going to tempt you to spend more. "Well, I can afford this because I have that nice 0% BT offer from so and so, so I'll just do that".

I'm not attacking you, but the best solution is to live within your means. Spend what you can afford to pay off. Treat your credit cards like debit and spend what you have enough money to pay for and that's it. Then you don't have to care what BT or 0% offers you have or can get. Just my opinion. The 0% offer will make you feel like you have a "safety net" that you don't really have because it's not your actual money. As much as savings accounts make such little money, IMO it's better to have some actual money aside for these things and not rely on 0% offers.
Yes this is how it should be handled, however it is nice to have such a card for unplanned or emergency situations. Medical emergencies, death in the family, etc. may cause you to need to carry a balance even if you never have before. It really doesn't hurt to have it just in case, as long as you are responsible enough to not use it unless needed.
I understand; however, emergencies shouldn't really be something you rely on CCs for. Why not have some actual money put aside? To each their own of course and I know we all have had unplanned events where we had to carry a balance. I just feel like it's better to have some actual money to pay for emergencies vs charging up a credit card. Not to say I've never put an expense on a CC that I wasn't expecting, but it should be the exception not the rule.

Just the qualifier of "as long as you are responsible enough to not use it unless needed" unfortunately eliminates a large percentage of consumers who will use it when they don't need it.

All good points... Yeah that elminiates 80% of potential candidates haha... And I agree you should have savings to cover such emergencies, but some people either don't make enough to gather a large amount of savings, or they don't want to wipe out their entire savings in one go so it's nice to have options at least. I always try to have a year of income in savings, which isn't a lot for me as I'm still a young college student, but it is nice to have that there just in case.