topic Re: A Balance Transfer Offer I Can't Refuse! in Credit Cards

A Balance Transfer Offer I Can't Refuse!

Anonymous — Fri, 20 Apr 2018 01:00:42 GMT

I just have a couple of cards with balances that are from cards with 0% APR that are expiring soon. I have about $2k that I need to move, and I think I found their new home until paid off. I don't think I can turn down this offer for transferring by 6/30/18 and doesn't have to be paid off until Dec., 2019 and a 0% balance transfer fee!! I've never had an offer like that before. This is on my BJs card, which is offered by Comenity Bank. That's the only thing that slightly worries me is that it's Comenity. Has anyone else received this offer recently and is there something hidden I might not have noticed yet? I've always heard if something is too good to be true, it probably is. Hopefully not in this case.

Re: A Balance Transfer Offer I Can't Refuse!

Anonymous — Fri, 20 Apr 2018 01:05:38 GMT

@Anonymous wrote:
I just have a couple of cards with balances that are from cards with 0% APR that are expiring soon. I have about $2k that I need to move, and I think I found their new home until paid off. I don't think I can turn down this offer for transferring by 6/30/18 and doesn't have to be paid off until Dec., 2019 and a 0% balance transfer fee!! I've never had an offer like that before. This is on my BJs card, which is offered by Comenity Bank. That's the only thing that slightly worries me is that it's Comenity. Has anyone else received this offer recently and is there something hidden I might not have noticed yet? I've always heard if something is too good to be true, it probably is. Hopefully not in this case.

Comenity has offered the same offer thru other cards in the past such as the Sportsman Guide Visa and I have made use of it without any problem, as have others.

Re: A Balance Transfer Offer I Can't Refuse!

Anonymous — Fri, 20 Apr 2018 01:16:38 GMT

@Anonymous wrote:
@Anonymous wrote:
I just have a couple of cards with balances that are from cards with 0% APR that are expiring soon. I have about $2k that I need to move, and I think I found their new home until paid off. I don't think I can turn down this offer for transferring by 6/30/18 and doesn't have to be paid off until Dec., 2019 and a 0% balance transfer fee!! I've never had an offer like that before. This is on my BJs card, which is offered by Comenity Bank. That's the only thing that slightly worries me is that it's Comenity. Has anyone else received this offer recently and is there something hidden I might not have noticed yet? I've always heard if something is too good to be true, it probably is. Hopefully not in this case.

Comenity has offered the same offer thru other cards in the past such as the Sportsman Guide Visa and I have made use of it without any problem, as have others.

Since my available credit is $12k, should I be concerned about the 30% rule? In other words don't move any more than $3,600?

Re: A Balance Transfer Offer I Can't Refuse!

CreditCuriosity — Fri, 20 Apr 2018 01:43:07 GMT

@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I just have a couple of cards with balances that are from cards with 0% APR that are expiring soon. I have about $2k that I need to move, and I think I found their new home until paid off. I don't think I can turn down this offer for transferring by 6/30/18 and doesn't have to be paid off until Dec., 2019 and a 0% balance transfer fee!! I've never had an offer like that before. This is on my BJs card, which is offered by Comenity Bank. That's the only thing that slightly worries me is that it's Comenity. Has anyone else received this offer recently and is there something hidden I might not have noticed yet? I've always heard if something is too good to be true, it probably is. Hopefully not in this case.

Comenity has offered the same offer thru other cards in the past such as the Sportsman Guide Visa and I have made use of it without any problem, as have others.
Since my available credit is $12k, should I be concerned about the 30% rule? In other words don't move any more than $3,600?

Honestly with your scores in the 800+ I wouldn't lose a second of sleep transferring up to even 50% if it saves you money in interest on another card! Golden rule is kinda 30%, but you have a very strong profile and won't see any AA maybe a few point ding, but nothing your score can't handle IMO. Rather save money than a few points of score if you need to transfer more..

Re: A Balance Transfer Offer I Can't Refuse!

Anonymous — Fri, 20 Apr 2018 02:07:09 GMT

@CreditCuriosity wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
I just have a couple of cards with balances that are from cards with 0% APR that are expiring soon. I have about $2k that I need to move, and I think I found their new home until paid off. I don't think I can turn down this offer for transferring by 6/30/18 and doesn't have to be paid off until Dec., 2019 and a 0% balance transfer fee!! I've never had an offer like that before. This is on my BJs card, which is offered by Comenity Bank. That's the only thing that slightly worries me is that it's Comenity. Has anyone else received this offer recently and is there something hidden I might not have noticed yet? I've always heard if something is too good to be true, it probably is. Hopefully not in this case.

Comenity has offered the same offer thru other cards in the past such as the Sportsman Guide Visa and I have made use of it without any problem, as have others.
Since my available credit is $12k, should I be concerned about the 30% rule? In other words don't move any more than $3,600?
Honestly with your scores in the 800+ I wouldn't lose a second of sleep transferring up to even 50% if it saves you money in interest on another card! Golden rule is kinda 30%, but you have a very strong profile and won't see any AA maybe a few point ding, but nothing your score can't handle IMO. Rather save money than a few points of score if you need to transfer more..

Okay thanks for the reply. Actually my TU score is now 825 according to the Discover score as of today. I wouldn't be going over 30% anyway. Oh and I submitted for a CLI on the Comenity card and it was just changed to $13,500 with a soft hit. I use the card a lot but always pay it off each month. I figured I should do that before I do the BT.

Re: A Balance Transfer Offer I Can't Refuse!

pipeguy — Fri, 20 Apr 2018 03:31:12 GMT

My wife gets those offers all the time, we rip them up and in the trash they go, mainly because it's Comenity. I refuse to have any card with Comenity, the wife has one (BJ's) because we like and use that merchant and there is a discount using the card for membership renewals. I have no problem with BT's, both DCU and NFCU run 0% transfers around the first of each year (DCU 6 months, NFCU 12 months).

You might look at the Chase Slate card for balance transfers, pretty worthless after the 15-month intro period, but 0% BT fee during the 1st 60 days and 0% apr for 15 months.

https://creditcards.chase.com/balance-transfer-credit-cards/chase-slate

I'm probably biased because I just can't trust or stand Comenity bankcards after they shut my TR $10k CL card down after 21 months of perfect usage/payments/utility and zero outside factors.

Re: A Balance Transfer Offer I Can't Refuse!

Anonymous — Fri, 20 Apr 2018 10:12:43 GMT

@pipeguy wrote:
My wife gets those offers all the time, we rip them up and in the trash they go, mainly because it's Comenity. I refuse to have any card with Comenity, the wife has one (BJ's) because we like and use that merchant and there is a discount using the card for membership renewals. I have no problem with BT's, both DCU and NFCU run 0% transfers around the first of each year (DCU 6 months, NFCU 12 months).

You might look at the Chase Slate card for balance transfers, pretty worthless after the 15-month intro period, but 0% BT fee during the 1st 60 days and 0% apr for 15 months.

https://creditcards.chase.com/balance-transfer-credit-cards/chase-slate

I'm probably biased because I just can't trust or stand Comenity bankcards after they shut my TR $10k CL card down after 21 months of perfect usage/payments/utility and zero outside factors.

Thanks for your reply. I have not had a problem at all with Comenity, but have read stories on here of people like you that have. I personally have an issue with Chase, even though I have a card. It's a long story but they are very stingy with me with CL so I won't try for the Slate.

Re: A Balance Transfer Offer I Can't Refuse!

K-in-Boston — Fri, 20 Apr 2018 11:07:12 GMT

No problem at all with BTs on the BJ’s card. I just paid one off myself that was around $10k. The “gotcha” with this is of course the loss of grace period, so any new purchases would begin to accrue interest immediately if you don’t pay the full statement balance (which includes the BT); that would seriously cut into the 5% back. FWIW the $75 membership fee charged to the card automatically didn’t accrue interest. Protip: you can get a SP CLI every 4 months with this card.

Re: A Balance Transfer Offer I Can't Refuse!

UpperNwGuy — Fri, 20 Apr 2018 11:09:53 GMT

If you're going to use a card for a balance transfer, don't use it for any regular spending until after the balance transfer has been paid off or transferred elsewhere and a statement cuts showing a zero balance.

Re: A Balance Transfer Offer I Can't Refuse!

Anonymous — Fri, 20 Apr 2018 11:16:07 GMT

For sure, I want it to show it is PIF before using it again.

Re: A Balance Transfer Offer I Can't Refuse!

K-in-Boston — Fri, 20 Apr 2018 14:31:34 GMT

@UpperNwGuy wrote:
If you're going to use a card for a balance transfer, don't use it for any regular spending until after the balance transfer has been paid off or transferred elsewhere and a statement cuts showing a zero balance.

An exception to this would be cards with 0% BTs and introductory 0% APRs. Taking advantage of Discover 5% caregories while having a BT or taking advantage of targeted 5% offers from Citi while having a BT Are both fine, as examples. Just make sure you have both offers first!

Re: A Balance Transfer Offer I Can't Refuse!

AverageJoesCredit — Fri, 20 Apr 2018 14:36:09 GMT

With scores and limits like yours there should be no problem. If there is, you have other options so no sweat

Re: A Balance Transfer Offer I Can't Refuse!

Anonymous — Fri, 20 Apr 2018 15:01:34 GMT

@K-in-Boston wrote:
@UpperNwGuy wrote:
If you're going to use a card for a balance transfer, don't use it for any regular spending until after the balance transfer has been paid off or transferred elsewhere and a statement cuts showing a zero balance.
An exception to this would be cards with 0% BTs and introductory 0% APRs. Taking advantage of Discover 5% caregories while having a BT or taking advantage of targeted 5% offers from Citi while having a BT Are both fine, as examples. Just make sure you have both offers first!

Or cards like Barclays that allow you to make purchases after a BT and still not accrue interest as long as you pay off the new charge(s)

Re: A Balance Transfer Offer I Can't Refuse!

Anonymous — Fri, 20 Apr 2018 15:11:02 GMT

So if I BT and use the card for regular purchases, I'm going to get dinged on the money I did the BT on? Makes no sense to me.

Re: A Balance Transfer Offer I Can't Refuse!

K-in-Boston — Fri, 20 Apr 2018 16:12:45 GMT

No, only on new purchases. Not sure which APR you got with yours, but let's say it's the 16.24% tier. You have a balance transfer of $2000 and make a $500 trip to BJ's every month on the day after your statement closed (for math simplicity sake). Your minimum payment is usually $40, but you pay $150 toward the BT and the $500 trip ($650 total), bringing your balance down to $1850. The next statement closes, and you again made a $500 purchase on the day after your statement closed. Because you only paid $650 and not $2500 the month before, you've lost your grace period. The $500 will begin accruing interest on day 1, so rather than your next statement being $2350, it would be about $2356.77 instead because you accrued interest on that $500 (effectively negating 1.35% of that 5% back, this is worse of course if you got the 26.24% tier). You then make a payment of $656.77 (new purchase plus interest) on the due date and don't make a new charge the next month. Your balance is down to $1700, right? No. Because you didn't make a payment until the due date 25 days after the statement date, you were still accruing interest on that $500 plus the interest, so now your next statement has $6.86 in interest from a charge you made nearly 2 months ago (another 1.37%, combining for 2.72% you've now lost of that 5% back - probably almost net zero on rewards if you have the higher tier at this point). Since you stopped charging and you made a payment of $156.86, your next statement balance really is $1550.

That was long-winded. I apologize. Hopefully that helps to explain the concept of why it's a bad idea to charge new purchases on most cards that have a purchase APR but no interest on another balance that you're unlikely to pay in full each month. You can see that if one continued to charge every month that it would just get worse and they would not be getting 5% back whatsoever when you deduct the interest paid. And to be clear, the 0% balance transfer will not accrue interest until the promotional period clearly printed on your statementy has ended.

Re: A Balance Transfer Offer I Can't Refuse!

Anonymous — Sat, 21 Apr 2018 00:14:27 GMT

@K-in-Boston wrote:
No, only on new purchases. Not sure which APR you got with yours, but let's say it's the 16.24% tier. You have a balance transfer of $2000 and make a $500 trip to BJ's every month on the day after your statement closed (for math simplicity sake). Your minimum payment is usually $40, but you pay $150 toward the BT and the $500 trip ($650 total), bringing your balance down to $1850. The next statement closes, and you again made a $500 purchase on the day after your statement closed. Because you only paid $650 and not $2500 the month before, you've lost your grace period. The $500 will begin accruing interest on day 1, so rather than your next statement being $2350, it would be about $2356.77 instead because you accrued interest on that $500 (effectively negating 1.35% of that 5% back, this is worse of course if you got the 26.24% tier). You then make a payment of $656.77 (new purchase plus interest) on the due date and don't make a new charge the next month. Your balance is down to $1700, right? No. Because you didn't make a payment until the due date 25 days after the statement date, you were still accruing interest on that $500 plus the interest, so now your next statement has $6.86 in interest from a charge you made nearly 2 months ago (another 1.37%, combining for 2.72% you've now lost of that 5% back - probably almost net zero on rewards if you have the higher tier at this point). Since you stopped charging and you made a payment of $156.86, your next statement balance really is $1550.

That was long-winded. I apologize. Hopefully that helps to explain the concept of why it's a bad idea to charge new purchases on most cards that have a purchase APR but no interest on another balance that you're unlikely to pay in full each month. You can see that if one continued to charge every month that it would just get worse and they would not be getting 5% back whatsoever when you deduct the interest paid. And to be clear, the 0% balance transfer will not accrue interest until the promotional period clearly printed on your statementy has ended.

Thank you! I read that twice just to make sure I understood. I mostly use the BJs card for the 10 cent discount on gasoline purchases. I'll just post a payment as soon as the gas purchase posts and that should take care of that problem. I was worried that the BT would lose the offer period.

I am at the 16.24% tier. Also, my wife and I just returned from a few days in Boston this past weekend. I ran the 5K on Saturday and watched the marathon at mile #21 on Monday in the monsoon! Oh and we were at the Red Sox game on Sunday in the sleet and 40 mph winds in our face along the 3rd base line.

Re: A Balance Transfer Offer I Can't Refuse!

K-in-Boston — Sat, 21 Apr 2018 01:20:21 GMT

Glad you got to experience all 4 of our seasons in one long weekend!