topic Re: Balance Transfer APR question in Credit Cards

Balance Transfer APR question

Anonymous — Sat, 19 Dec 2020 17:48:28 GMT

I got a promo apr on a Capital One card (0%) last year, it's due to "expire" soon. I owe 1200 still. They are offering me another 0% now which I would like to use for about 7k on another card. My question is that if I transfer the 7k to get the 0% rate, when the rate expires on that 1200 soon (not sure exactly when) will that full amount become due in order to keep the 0% on the 7k? I know when I make purchases, I'm required to pay in full each month (for the new purchases) in order to keep the promo apr. How would it work with a previous promo apr that is expiring? I hope that what I'm asking is clear. I am not able to pay off the 1200 or I would, I'm barely treading water as it is. Thank you.

Re: Balance Transfer APR question

Remedios — Sat, 19 Dec 2020 17:58:43 GMT

You will be paying interest on remaining unpaid balance from current promo that's about to expire.

New BT 0% promo would be tracked separately, and you wouldn't be paying interest on it until it expires.

Once the current promo expires, you are losing grace period on new purchases, unless you pay $1200 and the new purchases balance. I'd strongly suggest you stop using that card for new purchases.

Re: Balance Transfer APR question

Anonymous — Sat, 19 Dec 2020 18:04:55 GMT

Thank you @Remedios, that's very helpful. I don't use my cards at all. Maybe twice a year for 10 bucks of less at a time and paid in full when the bill comes. I'm disabled and living on ssdi so it's taking me FOREVER and two days to get my old balances down. So, also, when I make a payment, if it has the two aprs, will the payment go to the lower apr or they can collect as much interest as possible from me? I feel like I remember something changing about them not being allowed to do that, but maybe that's just hopeful thinking.

Re: Balance Transfer APR question

Remedios — Sat, 19 Dec 2020 18:10:10 GMT

I believe minimum payment will be satisfied first, then whatever is in excess of minimum payment will be applied to balance with higher APR.

Unfortunately, if I'm correct, that means it will be a while before you make a dent when it comes to $7000.00

Are you a member of any credit union?

Re: Balance Transfer APR question

Anonymous — Sat, 19 Dec 2020 18:18:38 GMT

I'm not currently. I live abroad with my husband but I'm hoping to return to America and try to work again, soon. Hopefully this will allow me to make larger payments and find some better options.

Re: Balance Transfer APR question

Remedios — Sat, 19 Dec 2020 18:37:10 GMT

@Anonymous wrote:
I'm not currently. I live abroad with my husband but I'm hoping to return to America and try to work again, soon. Hopefully this will allow me to make larger payments and find some better options.

Once you return, give local CUs or larger ones a try.

Re: Balance Transfer APR question

Anonymous — Sat, 19 Dec 2020 18:39:22 GMT

@Remedios Thank you so much for you help, you are great!

Re: Balance Transfer APR question

Remedios — Sat, 19 Dec 2020 18:42:09 GMT

@Anonymous wrote:
@Remedios Thank you so much for you help, you are great!

You are welcome.

There are ways to shuffle balances till paid off, and if you can get a card from CU, or perhaps a small loan, it would definitely speed up the process and minimize high interest payments.

Re: Balance Transfer APR question

Shooting-For-800 — Sun, 20 Dec 2020 13:16:08 GMT

I would pay the 1200 then do a New transfer to your checking account.

This allows you to pay as you want when you want and you are only out the 1200 a week or less.