topic Re: Balance transfer question in Credit Cards

Balance transfer question

Jccflat — Mon, 18 Jan 2021 17:48:29 GMT

So I recently got approved with the FNBO cord with $15,000 credit line

I do have a balance transfer offer 0%

I want to take advantage of this offer

Now I see that the charge 3% of the balance transfer

And I do have zero I do have 0% on purchases also

Since I use my credit for the business for Thousands of dollars And I get reimbursed the money Is it worth it same as the balance transfer method so I do purchase balances on that amount instead of the balance transfer offer so I save the 3% fee?

Also if I do only partial balance transfer and then the rest in purchases does this affect the interest ? Or it doesn't Since the purchase APR is also zero till April 2022?

let me know if am missing something here

Re: Balance transfer question

FinStar — Mon, 18 Jan 2021 18:01:29 GMT

@Jccflat wrote:
So I recently got approved with the FNBO cord with $15,000 credit line
I do have a balance transfer offer 0%
I want to take advantage of this offer
Now I see that the charge 3% of the balance transfer
And I do have zero I do have 0% on purchases also

Since I use my credit for the business for Thousands of dollars And I get reimbursed the money Is it worth it same as the balance transfer method so I do purchase balances on that amount instead of the balance transfer offer so I save the 3% fee?

Also if I do only partial balance transfer and then the rest in purchases does this affect the interest ? Or it doesn't Since the purchase APR is also zero till April 2022?

let me know if am missing something here

Yes, since they will calculate your ADB on the purchase APR.

I would not commingle your standard purchase transactions when you're carrying a BT on this card. If both purchase and BT APRs were 0% for the 15 month duration, then it would be more viable, even with the BT fee. But, in your case, the promotional/intro APR only applies to BTs.

Re: Balance transfer question

Jccflat — Mon, 18 Jan 2021 18:09:19 GMT

I'll check but i remember my purchase apr is the same as the balance transfer offfer zero apr for 15 months

Re: Balance transfer question

FinStar — Mon, 18 Jan 2021 18:23:17 GMT

I would double-check just to make sure @Jccflat. If both are 0% then you should be good.

Re: Balance transfer question

dogmeat — Tue, 19 Jan 2021 00:57:01 GMT

In general, I don't believe a 3% fee BT is very good for someone with good credit (as you appear to have with a recent 15K FNBO card). You'd be better off figuring out how to put direct purchase on the card assuming it also has a 0% purchase APR (which is a common introductory card offer, often coincident with 0% APR BT).

For short-term BT float, there are other options. There are a handful of CU cards out there with permanent 0% BT fee. Even with a 10% APR card (such as DCU) which is not the best option available, you're paying 10/12 = .83%/mon in interest, so if you can pay off the BT (e.g., with business sales/AR/reimbursement) within 3 months, you're still below 3% (.83 x 3 = 2.5). Another very good option is the Penfed Promise, though I read recently they don't offer it anymore. It has an ongoing 0% BT fee, 4.9% APR for 12 months, or about .42%/mo interest. With that card you can float for up to 6 months and stay below 3% (6 x .42 ~= 2.5).

Re: Balance transfer question

FinStar — Tue, 19 Jan 2021 02:23:45 GMT

@dogmeat wrote:
In general, I don't believe a 3% fee BT is very good for someone with good credit (as you appear to have with a recent 15K FNBO card). You'd be better off figuring out how to put direct purchase on the card assuming it also has a 0% purchase APR (which is a common introductory card offer, often coincident with 0% APR BT).

For short-term BT float, there are other options. There are a handful of CU cards out there with permanent 0% BT fee. Even with a 10% APR card (such as DCU) which is not the best option available, you're paying 10/12 = .83%/mon in interest, so if you can pay off the BT (e.g., with business sales/AR/reimbursement) within 3 months, you're still below 3% (.83 x 3 = 2.5). Another very good option is the Penfed Promise, though I read recently they don't offer it anymore. It has an ongoing 0% BT fee, 4.9% APR for 12 months, or about .42%/mo interest. With that card you can float for up to 6 months and stay below 3% (6 x .42 ~= 2.5).

While these additional options can be great opportunities, especially when shopping around, I believe the OP was mainly focused on this recently approved card and the use of intro promotions. Unless, OP changes their mind and wants to apply for something else.