topic Re: Multiple balance transfers on one Discover card? in Credit Cards

Multiple balance transfers on one Discover card?

Anonymous — Fri, 22 Nov 2019 04:49:44 GMT

I need some BT advice, please...

I have one BT (0%) on my Discover IT card, which will be paid off by mid-2020. Meanwhile, I've been getting more 0% BT offers for that same card. I have a store card balance that I'd love to transfer to Disco (to minimize my cash payment outlay over the holidays). But how would Disco treat the two BTs... as separate or lumped together? Are there any pitfalls I should be aware of?

Together, the BTs would bring that card to 21% util at the outset.

Thanks for your advice.

Re: Multiple balance transfers on one Discover card?

Anonymous — Fri, 22 Nov 2019 07:16:33 GMT

I have never seen any information on how Disco applies payments to BTs when you have more than one of them at 0% APR. The BTs would each have their own expiration date but if Discover splits payment between the two of them instead of applying it to the one that ends first, you can end up not paying it down quickly enough. This is something that would have me sending messages to Discover and saving the screenshots in case something goes wrong.

Re: Multiple balance transfers on one Discover card?

AverageJoesCredit — Fri, 22 Nov 2019 12:03:18 GMT

I would call and see what they say. 21% uti is worth saving interest and most likely will help future cli requests

Re: Multiple balance transfers on one Discover card?

Penjamin_Fedington — Fri, 22 Nov 2019 18:42:36 GMT

Why not just have them do a single balance transfer to your checking account? You can then use that money to pay off your other debts.

Re: Multiple balance transfers on one Discover card?

K-in-Boston — Fri, 22 Nov 2019 18:48:35 GMT

There is no issue with doing this. On your statement, you will see 0% APR balances listed line-by-line showing the promotional expiration date and the APR that they are subject to after that. If there are two or more balances at the same APR, payments will be applied to the balance expiring first using the regular Discover payment order rules: minimum payment is applied to the balance with the highest APR first inclusing any new purchases, then anything over the minimum payment is applied to fees and interest, balances with the highest APR, then applied to balance(s) with lower APR(s).

Re: Multiple balance transfers on one Discover card?

K-in-Boston — Fri, 22 Nov 2019 18:51:09 GMT

@Penjamin_Fedington wrote:
Why not just have them do a single balance transfer to your checking account? You can then use that money to pay off your other debts.

OP has an existing 0% APR balance transfer. This question pertained to having two different 0% offers with different expiration dates rather than doing multiple balance transfers at the same time.

Re: Multiple balance transfers on one Discover card?

Anonymous — Sat, 23 Nov 2019 03:57:13 GMT

@K-in-Boston wrote:
There is no issue with doing this. On your statement, you will see 0% APR balances listed line-by-line showing the promotional expiration date and the APR that they are subject to after that. If there are two or more balances at the same APR, payments will be applied to the balance expiring first using the regular Discover payment order rules: minimum payment is applied to the balance with the highest APR first inclusing any new purchases, then anything over the minimum payment is applied to fees and interest, balances with the highest APR, then applied to balance(s) with lower APR(s).

Where does Discover say that this is how they will do it though? I am aware of the payment rules you listed, however, two BTs at 0% wouldn't be included there since there is no interest and both BTs have the same effective 0% APR.

Re: Multiple balance transfers on one Discover card?

K-in-Boston — Sat, 23 Nov 2019 20:08:28 GMT

@Anonymous I don't know if Discover has it listed anywhere on their website or not, but I have too much experience with Discover balance transfers (just apparently not enough experience with current credit limit) on this and another card. The balance expiring in September still shows the full amount, while the balance expiring in June keeps going down by the payment amounts. When I have had mixed 4.99% and 0.00% offers in the past, the minimum payment amount was applied to the 0.00% balance while the remainder of the payment was applied to the 4.99% amount. This is my statement that closed 2 days ago.

(Edited to swap 0.00% and 4.99% order in penultimate sentence.)

Re: Multiple balance transfers on one Discover card?

Anonymous — Sat, 23 Nov 2019 07:27:12 GMT

Thanks so much for your replies, everybody. I did phone in today and got confirmation of everything as you explained it, K-in-Boston. I can make just one payment each month, and it will be applied to the BT with the earlier expiration date.

While I was on the line, I also confirmed that any purchases would reset the whole game, and interest would accrue on the full amount (purchases + BTs) unless I PIF everything. But then... the CSR said: "Not necessarily, not if you have a 0% offer for purchases" which she just happened to have to offer me, for 12 months. So I snapped it up. And I will phone back next week to do the new BT of my Macy's balance (to be slightly higher after I finish up a bit more shopping this weekend).

Re: Multiple balance transfers on one Discover card?

Anonymous — Sat, 23 Nov 2019 06:59:23 GMT

@K-in-Boston wrote:
@Anonymous I don't know if Discover has it listed anywhere on their website or not, but I have too much experience with Discover balance transfers (just apparently not enough experience with current credit limit) on this and another card. The balance expiring in September still shows the full amount, while the balance expiring in June keeps going down by the payment amounts. When I have had mixed 4.99% and 0.00% offers in the past, the minimum payment amount was applied to the 4.99% balance while the remainder of the payment was applied to the 0.00% amount. This is my statement that closed 2 days ago.

I figured it was knowledge from personal experience. I just was wondering if it was written down somewhere. Thanks!

Re: Multiple balance transfers on one Discover card?

mmmlive1999 — Sat, 23 Nov 2019 12:41:23 GMT

Each BT is separate. I love this about Discover.

Re: Multiple balance transfers on one Discover card?

SouthJamaica — Sat, 23 Nov 2019 14:15:59 GMT

@Anonymous wrote:
I need some BT advice, please...

I have one BT (0%) on my Discover IT card, which will be paid off by mid-2020. Meanwhile, I've been getting more 0% BT offers for that same card. I have a store card balance that I'd love to transfer to Disco (to minimize my cash payment outlay over the holidays). But how would Disco treat the two BTs... as separate or lumped together? Are there any pitfalls I should be aware of?

Together, the BTs would bring that card to 21% util at the outset.

Thanks for your advice.

They would treat them as separate. The promotional balances and rates would appear at the bottom of the statement.

The only pitfall with Discover is the same one that would apply even if you had only one balance transfer: never make purchases with that card while you have a balance transfer balance outstanding. (unless of course you have a 0% purchase interest rate, which Discover just bestowed upon you )

Re: Multiple balance transfers on one Discover card?

K-in-Boston — Sat, 23 Nov 2019 20:07:01 GMT

@Anonymous wrote:
@K-in-Boston wrote:
@Anonymous I don't know if Discover has it listed anywhere on their website or not, but I have too much experience with Discover balance transfers (just apparently not enough experience with current credit limit) on this and another card. The balance expiring in September still shows the full amount, while the balance expiring in June keeps going down by the payment amounts. When I have had mixed 4.99% and 0.00% offers in the past, the minimum payment amount was applied to the 4.99% balance while the remainder of the payment was applied to the 0.00% amount. This is my statement that closed 2 days ago.
I figured it was knowledge from personal experience. I just was wondering if it was written down somewhere. Thanks!

No problem! And the bolded sentence above should be reversed. Minimum to 0.00% amount and rest to 4.99% amount.

No matter what the CSR said, if you make a new purchase it does NOT affect your balance transfer APR. You simply have no grace period if the previous statement balance was not paid in full and will accrue interest only on the purchase. Had a $15,000 BT going a few years ago and a small household annual charge billed to the card. There was like $1 of interest due in total; it would have been disastrous had that affected the BT APR. There have also been times in the past where I would makes charges that got 5% back on Discover or BJ's card even when there was a BT because the rewards minus interest were still higher than rewards on other cards. Not something to make a habit of, but again you've entered into an agreement with the card issuer when you do a BT that as long as you make payments on time that is the APR that will apply for a specific amount of time to that balance.

Re: Multiple balance transfers on one Discover card?

jamesdwi — Sun, 24 Nov 2019 23:10:17 GMT

I would just mention, Discover loves use, even if its just a BT, after the second BT hits the card hit the love button, they may give more CLI love.

Re: Multiple balance transfers on one Discover card?

Anonymous — Mon, 25 Nov 2019 00:16:02 GMT

@Anonymous wrote:
While I was on the line, I also confirmed that any purchases would reset the whole game, and interest would accrue on the full amount (purchases + BTs) unless I PIF everything. But then... the CSR said: "Not necessarily, not if you have a 0% offer for purchases" which she just happened to have to offer me, for 12 months. So I snapped it up.

Hey thanks for the heads up!

I usually only call in for a permenent APR drop. And never considered they would offer 0% on purcahse while a BT promo is going.

Re: Multiple balance transfers on one Discover card?

Anonymous — Mon, 25 Nov 2019 15:45:15 GMT

I submitted the BT request this morning. The site says it may take up to 7 days to process; however, last time (July) the funds were in my checking account the very next day and I paid my Amex bill in full that same day.

Today's BT summary included this proviso regarding interest on purchases:

Balance Transfers and Interest on Purchases

If you usually pay for purchases in full each month to avoid interest,
transferring a balance will change that. You will be charged interest
on purchases unless you choose to pay your entire balance in full,
including any transferred balances, by the first payment due date.

Re: Multiple balance transfers on one Discover card?

AverageJoesCredit — Mon, 25 Nov 2019 16:37:38 GMT

Thats correct. The only thing that would change that statement would be if you had a 0% apr purchase promo at same time.

Re: Multiple balance transfers on one Discover card?

Anonymous — Tue, 03 Mar 2020 06:17:11 GMT

@K-in-Boston

I read you have experience with DISCOV BT, I could use your help please. I dont have many CC and trying to grow. I have a CAP 1 CC at a huge problem of a balance of $11k/$12k CL. I have a Credit Union VISA with $3k CL at 50% uti, another CAP 1 CC with $500 with no balance. Now I decided to apply for DISCOV IT and with a overall 59% uti I was shocked and approved for $9k. Now my question is should I do a BT onto the new Disco for maybe $5k to help my huge CAP 1 card which I am also trying to get a CLI and I am trying to bring down my uti which by just opening a new card gives me that but like I stated earlier trying to get more cards to build by profile. Was thinking just 1 more card. My scores are around 675-680, don't know how my new card will affect my score and if it's a good idea to apply for another card now? Have had 0 inq last two years for CC.