topic Re: Balance Transfer to Discover in Credit Cards

Balance Transfer to Discover

Jaybone2 — Sat, 06 Feb 2016 13:44:51 GMT

I just noticed a balance transfer option on my discover account webpage.

I am thinking about transfering about $2K from my Barclaycard.

They are giving 2 options 1.) 0% transfer fee and 4.99% apr

2.) 3% transfer fee and 0% apr.

Both make sense over keeping the balance on barclaycard which is like 20%( I probably need 3-4 months to zero it out)

Discover is saying that these offers will expire 2/9 ( a few days before my statement cuts)

My question is regarding the offer expiration. Is this just a ploy to get me to transfer sooner than later? or will it really expire and dissapear?

Doe anyone have any experience with Discover regarding this?

it would be nice to wait til after my statement cuts, but there wiould definitely be some savings over the next few months that I dont want to miss out on

Re: Balance Transfer to Discover

baller4life — Sat, 06 Feb 2016 13:58:09 GMT

I always have those offers on my Discover acct. When they expire, I get new offers. So if it doesn't work for you atm, you can wait for the next one.

Re: Balance Transfer to Discover

Mantis350 — Sat, 06 Feb 2016 13:58:29 GMT

These offers come up often enough with discover but once these current offers expire you may need to wait several months before another one comes up. Why are you waiting for the statement to cut? The transfer will take about 3 days to complete.

Re: Balance Transfer to Discover

Jaybone2 — Sat, 06 Feb 2016 14:15:16 GMT

Thanks. That is kind of what I expected, For some they may always be there, for others the might disappear for a few months at a time.

@ mantis I would like for the statement to cut so I can have a chance to make a decent size payment before it reports

Re: Balance Transfer to Discover

Anonymous — Sat, 06 Feb 2016 14:35:38 GMT

I've never NOT had them, but as stated, YMMV.

Re: Balance Transfer to Discover

takeshi74 — Sat, 06 Feb 2016 14:50:19 GMT

@Jaybone2 wrote:
Discover is saying that these offers will expire 2/9 ( a few days before my statement cuts)

My question is regarding the offer expiration. Is this just a ploy to get me to transfer sooner than later? or will it really expire and dissapear?

Most offers with most creditors and products have a limited timeframe. If the terms state that the offers expires then it will expire. That said, it is possible in some situations to get anoher offer. I have several cards that constantly send offers. However, whether or not one qualifies for such offers depends on one's credit profille.

@Jaybone2 wrote:
I would like for the statement to cut so I can have a chance to make a decent size payment before it reports

The statement for what? What do you perceive as the benefit versus BT'ing now? Does the card not report on statement date and, if so, paying after that won't help.

As stated above, it will take some time for the BT to process so if you've done the analysis and if it would benefit you then you might as well go ahead and kick it off.

Additionally, if you're worried about revolving utilization and it would leave you reporting more than you'd like (sounds unlikely from what you've said so far) you can adjust it next cycle.

Re: Balance Transfer to Discover

Anonymous — Sat, 06 Feb 2016 14:47:56 GMT

I got a similar deal about a mo ago and again the other day. Looks like you got a better deal than me. For mine option 1 was ~8% or something. Option 2 the same. I have a ring card so wasn't really worth it. But apparently better offers come around...think I'll wait.

Re: Balance Transfer to Discover

Jaybone2 — Sat, 06 Feb 2016 15:08:02 GMT

The statement for what? What do you perceive as the benefit versus BT'ing now? Does the card not report on statement date and, if so, paying after that won't help.

So right now Discover is zeroed out, I want the statement to cut and have them report zero for this month. After it cuts and reports than I would make the BT so I would have some time to make a payment before the next statement. So my percieved benefit is a lower utilization reporting

Re: Balance Transfer to Discover

newhis — Sat, 06 Feb 2016 16:45:30 GMT

@Jaybone2 wrote:
I just noticed a balance transfer option on my discover account webpage.

I am thinking about transfering about $2K from my Barclaycard.

They are giving 2 options 1.) 0% transfer fee and 4.99% apr
2.) 3% transfer fee and 0% apr.

Both make sense over keeping the balance on barclaycard which is like 20%( I probably need 3-4 months to zero it out)

My offers say the same 0% TF, 4.99% APR, 18 months or 3% TF, 0% APR, 12 months, and also expire 2/9 my statement cut a week later. My wife has the same offers, her statement cut 2 weeks after 2/9.

I want to learn about this offers in case I need them in the future (I'm new to credit cards in the USA).

My guess is

- if you get the 3% TF on $2,000, then they will charge your card with $2,000 plus the fee $60.

- if you get the 0% TF on $2,000, then they will only charge $2,000 and start counting interest at 4.99%, so:

$2,000 for 1 cycle at 4.99% then they will ask for $8.xx interest, then pay $500 or so

$1,500 for 1 cycle at 4.99% then $6.xx interest, and so on, right?

So the better option if you are going to use the money for 3-4 months is to go with 0% TF and 4.99% APR. Is that correct?

Re: Balance Transfer to Discover

UncleB — Sat, 06 Feb 2016 17:13:57 GMT

@newhis wrote:
@Jaybone2 wrote:
I just noticed a balance transfer option on my discover account webpage.

I am thinking about transfering about $2K from my Barclaycard.

They are giving 2 options 1.) 0% transfer fee and 4.99% apr
2.) 3% transfer fee and 0% apr.

Both make sense over keeping the balance on barclaycard which is like 20%( I probably need 3-4 months to zero it out)

My offers say the same 0% TF, 4.99% APR, 18 months or 3% TF, 0% APR, 12 months, and also expire 2/9 my statement cut a week later. My wife has the same offers, her statement cut 2 weeks after 2/9.

I want to learn about this offers in case I need them in the future (I'm new to credit cards in the USA).
My guess is
- if you get the 3% TF on $2,000, then they will charge your card with $2,000 plus the fee $60.
- if you get the 0% TF on $2,000, then they will only charge $2,000 and start counting interest at 4.99%, so:
$2,000 for 1 cycle at 4.99% then they will ask for $8.xx interest, then pay $500 or so
$1,500 for 1 cycle at 4.99% then $6.xx interest, and so on, right?

So the better option if you are going to use the money for 3-4 months is to go with 0% TF and 4.99% APR. Is that correct?

Exactly!

In my own case, the math made sense to take the 0% +3% fee offer, but for short-term needs the 4.99% offer could be the better deal.

Re: Balance Transfer to Discover

NRB525 — Sat, 06 Feb 2016 19:32:15 GMT

@Jaybone2 wrote:

The statement for what? What do you perceive as the benefit versus BT'ing now? Does the card not report on statement date and, if so, paying after that won't help.

So right now Discover is zeroed out, I want the statement to cut and have them report zero for this month. After it cuts and reports than I would make the BT so I would have some time to make a payment before the next statement. So my percieved benefit is a lower utilization reporting

I think you need to make a decision about where your priorities are.

You have a balance paying 20% APR right now. Sucking cash out of your wallet every month. Using the Discover offer for no BT and a low APR allows you to use some of that same cash to pay down the balance.

Or, you can try to game your FICO score by, how much, 7 points? 10 points? by waiting to see if the BT offer shows up after February 9, because you think there is a benefit to the Discover card reporting zero. There is a score benefit, but who pays you for that score benefit? Nobody.

Now, on my Discover account, I see these short term BT offers all the time. All the time. So there is a high likelihood that you will get the exact same offer on February 10, with a February 15 expiration date. So it may work out fine to wait.

But for myself, I would want to cut the 20% interest cost now, using the No BT Fee offer, and let FICO sort itself out over the next few months (since I did not hear you saying you had any plans to app for anything in the next few months).

Re: Balance Transfer to Discover

NRB525 — Sat, 06 Feb 2016 19:34:46 GMT

@UncleB wrote:
@newhis wrote:
@Jaybone2 wrote:
I just noticed a balance transfer option on my discover account webpage.

I am thinking about transfering about $2K from my Barclaycard.

They are giving 2 options 1.) 0% transfer fee and 4.99% apr
2.) 3% transfer fee and 0% apr.

Both make sense over keeping the balance on barclaycard which is like 20%( I probably need 3-4 months to zero it out)

My offers say the same 0% TF, 4.99% APR, 18 months or 3% TF, 0% APR, 12 months, and also expire 2/9 my statement cut a week later. My wife has the same offers, her statement cut 2 weeks after 2/9.

I want to learn about this offers in case I need them in the future (I'm new to credit cards in the USA).
My guess is
- if you get the 3% TF on $2,000, then they will charge your card with $2,000 plus the fee $60.
- if you get the 0% TF on $2,000, then they will only charge $2,000 and start counting interest at 4.99%, so:
$2,000 for 1 cycle at 4.99% then they will ask for $8.xx interest, then pay $500 or so
$1,500 for 1 cycle at 4.99% then $6.xx interest, and so on, right?

So the better option if you are going to use the money for 3-4 months is to go with 0% TF and 4.99% APR. Is that correct?
Exactly!

In my own case, the math made sense to take the 0% +3% fee offer, but for short-term needs the 4.99% offer could be the better deal.

Yes, on any situation where you plan to pay down the BT balance quickly, the No Fee BT offer is the better deal. If you plan to run out the BT offer for the entire term, especially if there will be a balance remaining at the end of the term, then paying the fee up front is often the better choice for reducing total interest cost.

Re: Balance Transfer to Discover

Jaybone2 — Wed, 10 Feb 2016 12:57:16 GMT

Thanks for everyones input on this topic.

Yesterday the offer said respond by 2/9

today the offer is back with a 4/5 expiration date.

So pscyhed . This is a great deal for me Thank you Discover

Re: Balance Transfer to Discover

newhis — Wed, 10 Feb 2016 15:45:03 GMT

Same here, new expiration 4/5