topic Re: Amex balance transfer question in Credit Cards

Amex balance transfer question

Anonymous — Mon, 03 Dec 2018 22:49:21 GMT

Question if I used an AMEX gold/platinum could I transfer the balance to a AED or AEDP for the 0% APR?

Re: Amex balance transfer question

Anonymous — Mon, 03 Dec 2018 23:08:02 GMT

most issuers won't transfer balance between same brand cards.

here is AMED's footnote on balance transfer

You may not transfer balances from any account issued by American Express or any of its affiliates.

Re: Amex balance transfer question

FinStar — Mon, 03 Dec 2018 23:15:24 GMT

Re: Amex balance transfer question

Anonymous — Mon, 03 Dec 2018 23:19:31 GMT

Sounds good thanks👍🏾

Re: Amex balance transfer question

zerofire — Tue, 04 Dec 2018 15:57:28 GMT

Oh heck no.

The idea of a balance transfer is that new buisness is added to a lenders portfolio while taking it from the previous lender. In exchange they generally set the intrest rate at 0% for some time. It would be counterintuitive to allow for a lenders existing balances that might be racking up 10-30% to go to 0% just because you got approved for a new card. Can you imagine how many people would abuse that loophole if it existed to never get charged intrest?

Re: Amex balance transfer question

Ardecko — Tue, 04 Dec 2018 16:34:14 GMT

Oh, wow...

I finally understand balance transfers. Even if the new lender never makes any interest off of the transferred amount, neither does the old lender. Genius!

Re: Amex balance transfer question

K-in-Boston — Tue, 04 Dec 2018 17:03:15 GMT

It's a little more nuanced than that.

Most people who carry balances long term won't pay off a balance transfer when the promotional period ends, then they get to pay the full APR to the new lender. Also most consumers only have a few cards and keep them for a long time so it's an incentive to obtain new customers.

Re: Amex balance transfer question

zerofire — Wed, 05 Dec 2018 00:03:48 GMT

K-in-Boston is correct but is leaving a small amount out. With a balance transfer you get a balance transfer fee. This is $0-10 or 0-4% whichever is higher with most banks picking $5 or 3% whichever is higher. Now the new bank is in that case making massive killing since you are providing those funds in advance and their US tresury lending rate is ~0.65%APY. Lenders are now getting a customer in to their system(account setup), making profit(BT fee), securing future profit potentual(unpaid amounts at end of promo/new charges).