topic Balance Transfer Question in Credit Cards

Balance Transfer Question

Anonymous — Tue, 07 Jan 2020 19:05:19 GMT

I am sure this has been asked a million times, but I need to know asap.

My parents are looking to use a zero % 12-month balance transfer offer from Chase for some home repairs. It has a 4% fee, and I, being a great son, was thinking it makes sense to put the charge on my 2% cash back card as a way to help them reduce the cost. They have no non-Chase cards except for AMEX and the provider doesn't accept AMEX.

Is there any downside to paying an issuer off from a balance transfer? In other words, will Bank A be bothered by the fact I am paying off the balance using a BT from Bank B? We will probably do this twice before 1/31.

Not worried about utilization for my card.

Re: Balance Transfer Question

M_Smart007 — Tue, 07 Jan 2020 20:33:54 GMT

@Anonymous wrote:
I am sure this has been asked a million times, but I need to know asap.

My parents are looking to use a zero % 12-month balance transfer offer from Chase for some home repairs. It has a 4% fee, and I, being a great son, was thinking it makes sense to put the charge on my 2% cash back card as a way to help them reduce the cost. They have no non-Chase cards except for AMEX and the provider doesn't accept AMEX.

Is there any downside to paying an issuer off from a balance transfer? In other words, will Bank A be bothered by the fact I am paying off the balance using a BT from Bank B? We will probably do this twice before 1/31.

Not worried about utilization for my card.

I think this is probablt quite common, and I don't see an issue. Personally I would try to keep you utilization as low as possible.

and anything over 89% is considered maxed to the limit. I also suggest making more than the minumum payments

on cards with BT's. .. All JMHO

Re: Balance Transfer Question

K-in-Boston — Tue, 07 Jan 2020 21:18:31 GMT

Zero issues whatsoever. It may be worth your parents calling Chase to see if there might be any 0% promotional purchase offers available for them. May be a long shot but it saves 2% of the 4% fee after taking into account your 2% cash back, and depending on the Chase card there might be rewards on top of it earned for their purchase. Alternately, if they're up for it, a new application for a card with a 0% introductory offer that also earns rewards would also cost less than zero for them to carry.

Re: Balance Transfer Question

Anonymous — Tue, 07 Jan 2020 21:17:05 GMT

Thanks!

I thought about it, and they can transfer the $ from the BT into their checking account, transfer the funds to me, and I can pay from my checking account, avoiding my concern.

None of the accounts will go into dangerous utilization.