topic Re: Questions about balance transfers in Credit Cards

Questions about balance transfers

SUPERSQUID — Mon, 10 Jan 2022 20:36:40 GMT

Lets say i just got a card with an introductory bt offer, lets say zero pct for 12 months with a 3 pct fee.

I have another cc with 26.99 int rate. i put car repair charges on that card, can i bt to my new card right away?

The same question involves a cash advance. lets say i take a 500 buck cash advance from the 26.99 cc, can i bt that balance to the zero card right away?

Re: Questions about balance transfers

Junejer — Mon, 10 Jan 2022 20:44:53 GMT

If they are offering it to you, I don't see why not. I BT a small amount a couple of years ago on a card I just opened. You should read the fine print on the BT offer to make sure though.

Re: Questions about balance transfers

Aim_High — Mon, 10 Jan 2022 20:51:02 GMT

Yes and Yes, @SUPERSQUID.

The caveat is that balance transfers aren't instantaneous, even when done electronically, and whether it's for a new charge or a cash advance. It may take three days or even up to about a week for the original balance to show paid off by the BT. So you'll still owe the appropriate interest on the initial charges plus whatever the cash advance fee is on the original card. For many cards, that fee can be quite expensive. Plus, Cash advance APRs are often higher than your purchase APR and kick in immediately after a cash advance.

To estimate the daily interest, divide the interest rate by 365 to get the daily rate. Then multiply the estimated daily balance by that. For example, your 26.99% rate is 0.2699 divided by 365= 0.00073945. Let's say you post a $3,000 balance and run it for five days until it transfers. The daily rate is $2.21835 (let's call it $2.20 per day) x 5 days = $11.00. Plus, you'll pay the BT fee up-front. But a 3% BT fee for a 12-month period is equivalent to a 3% APR, which is a pretty decent loan. That $3,000 x .03 = $90.00 BT fee.

Edit to Add: Regarding the new card, lenders often have a screen on the initial application for you to enter any Balance Transfers as part of setting up the new account. And most lenders will allow you to do it at any time after the account has been approved, even before you receive the new card, if that was your question more than what I answered.

Re: Questions about balance transfers

SoCalGardener — Mon, 10 Jan 2022 22:02:00 GMT

@SUPERSQUID wrote:
Lets say i just got a card with an introductory bt offer, lets say zero pct for 12 months with a 3 pct fee.
I have another cc with 26.99 int rate. i put car repair charges on that card, can i bt to my new card right away?
The same question involves a cash advance. lets say i take a 500 buck cash advance from the 26.99 cc, can i bt that balance to the zero card right away?

What @Aim_High said about BTs not being instantaneous is *very* important, especially where cash advances are concerned.

I haven't done a cash advance in decades, but as I understand it, they typically start incurring interest IMMEDIATELY--and their APRs are very high. So let's say you get a CA on January 11, and you initiate a BT to cover it on January 12, but the BT doesn't hit the account until January 26, that's FOURTEEN days of sky-high interest you're being charged for the CA. If that's okay, fine, but I sure wouldn't want to pay it!

Re: Questions about balance transfers

AverageJoesCredit — Tue, 11 Jan 2022 03:04:46 GMT

@SoCalGardener wrote:
@SUPERSQUID wrote:
Lets say i just got a card with an introductory bt offer, lets say zero pct for 12 months with a 3 pct fee.
I have another cc with 26.99 int rate. i put car repair charges on that card, can i bt to my new card right away?
The same question involves a cash advance. lets say i take a 500 buck cash advance from the 26.99 cc, can i bt that balance to the zero card right away?
What @Aim_High said about BTs not being instantaneous is *very* important, especially where cash advances are concerned.

I haven't done a cash advance in decades, but as I understand it, they typically start incurring interest IMMEDIATELY--and their APRs are very high. So let's say you get a CA on January 11, and you initiate a BT to cover it on January 12, but the BT doesn't hit the account until January 26, that's FOURTEEN days of sky-high interest you're being charged for the CA. If that's okay, fine, but I sure wouldn't want to pay it!

If one wants to do CA and either pay 0 fee or lower interest, CUs are great options. CUs like Navy Fed or Penfed do not frown upon it either unlike many banks. Just a fyi

Re: Questions about balance transfers

SouthJamaica — Tue, 11 Jan 2022 03:26:10 GMT

@SUPERSQUID wrote:
Lets say i just got a card with an introductory bt offer, lets say zero pct for 12 months with a 3 pct fee.
I have another cc with 26.99 int rate. i put car repair charges on that card, can i bt to my new card right away?
The same question involves a cash advance. lets say i take a 500 buck cash advance from the 26.99 cc, can i bt that balance to the zero card right away?

Yes and yes.

Re: Questions about balance transfers

SUPERSQUID — Tue, 11 Jan 2022 04:28:30 GMT

@AverageJoesCredit wrote:
@SoCalGardener wrote:
@SUPERSQUID wrote:
Lets say i just got a card with an introductory bt offer, lets say zero pct for 12 months with a 3 pct fee.
I have another cc with 26.99 int rate. i put car repair charges on that card, can i bt to my new card right away?
The same question involves a cash advance. lets say i take a 500 buck cash advance from the 26.99 cc, can i bt that balance to the zero card right away?
What @Aim_High said about BTs not being instantaneous is *very* important, especially where cash advances are concerned.

I haven't done a cash advance in decades, but as I understand it, they typically start incurring interest IMMEDIATELY--and their APRs are very high. So let's say you get a CA on January 11, and you initiate a BT to cover it on January 12, but the BT doesn't hit the account until January 26, that's FOURTEEN days of sky-high interest you're being charged for the CA. If that's okay, fine, but I sure wouldn't want to pay it!
If one wants to do CA and either pay 0 fee or lower interest, CUs are great options. CUs like Navy Fed or Penfed do not frown upon it either unlike many banks. Just a fyi

I definitely have a vehicle repair coming up soon and mechanics arent cheap. i was thinking of charging the repair to my mercury or legacy and quickly doing a bt to my penfed PCR which has a bt offer zero for 12 months. the cutoff date for that bt offer is march 31.

I probably wont take a cash advance but it crossed my mind as something to ask.

so my repair interest can go from 26.99 int to zero quickly and then i can take my time paying it off, cool

Re: Questions about balance transfers

OmarGB9 — Tue, 11 Jan 2022 05:09:55 GMT

@SUPERSQUID wrote:
@AverageJoesCredit wrote:
@SoCalGardener wrote:
@SUPERSQUID wrote:
Lets say i just got a card with an introductory bt offer, lets say zero pct for 12 months with a 3 pct fee.
I have another cc with 26.99 int rate. i put car repair charges on that card, can i bt to my new card right away?
The same question involves a cash advance. lets say i take a 500 buck cash advance from the 26.99 cc, can i bt that balance to the zero card right away?
What @Aim_High said about BTs not being instantaneous is *very* important, especially where cash advances are concerned.

I haven't done a cash advance in decades, but as I understand it, they typically start incurring interest IMMEDIATELY--and their APRs are very high. So let's say you get a CA on January 11, and you initiate a BT to cover it on January 12, but the BT doesn't hit the account until January 26, that's FOURTEEN days of sky-high interest you're being charged for the CA. If that's okay, fine, but I sure wouldn't want to pay it!
If one wants to do CA and either pay 0 fee or lower interest, CUs are great options. CUs like Navy Fed or Penfed do not frown upon it either unlike many banks. Just a fyi
I definitely have a vehicle repair coming up soon and mechanics arent cheap. i was thinking of charging the repair to my mercury or legacy and quickly doing a bt to my penfed PCR which has a bt offer zero for 12 months. the cutoff date for that bt offer is march 31.
I probably wont take a cash advance but it crossed my mind as something to ask.
so my repair interest can go from 26.99 int to zero quickly and then i can take my time paying it off, cool

Yes, but just keep in mind that if you do a BT to your PCR card, you won't be able to make any purchases on it while carrying that BT; the purchase APR isn't 0%, it's whatever rate you were approved for, and if you charge anything to your card while carrying a BT, you'll have to pay off all purchases made PLUS the ENTIRE BT in that month to avoid interest charges.

Re: Questions about balance transfers

SUPERSQUID — Tue, 11 Jan 2022 06:20:23 GMT

@OmarGB9 wrote:
@SUPERSQUID wrote:
@AverageJoesCredit wrote:
@SoCalGardener wrote:
@SUPERSQUID wrote:
Lets say i just got a card with an introductory bt offer, lets say zero pct for 12 months with a 3 pct fee.
I have another cc with 26.99 int rate. i put car repair charges on that card, can i bt to my new card right away?
The same question involves a cash advance. lets say i take a 500 buck cash advance from the 26.99 cc, can i bt that balance to the zero card right away?
What @Aim_High said about BTs not being instantaneous is *very* important, especially where cash advances are concerned.

I haven't done a cash advance in decades, but as I understand it, they typically start incurring interest IMMEDIATELY--and their APRs are very high. So let's say you get a CA on January 11, and you initiate a BT to cover it on January 12, but the BT doesn't hit the account until January 26, that's FOURTEEN days of sky-high interest you're being charged for the CA. If that's okay, fine, but I sure wouldn't want to pay it!
If one wants to do CA and either pay 0 fee or lower interest, CUs are great options. CUs like Navy Fed or Penfed do not frown upon it either unlike many banks. Just a fyi
I definitely have a vehicle repair coming up soon and mechanics arent cheap. i was thinking of charging the repair to my mercury or legacy and quickly doing a bt to my penfed PCR which has a bt offer zero for 12 months. the cutoff date for that bt offer is march 31.
I probably wont take a cash advance but it crossed my mind as something to ask.
so my repair interest can go from 26.99 int to zero quickly and then i can take my time paying it off, cool
Yes, but just keep in mind that if you do a BT to your PCR card, you won't be able to make any purchases on it while carrying that BT; the purchase APR isn't 0%, it's whatever rate you were approved for, and if you charge anything to your card while carrying a BT, you'll have to pay off all purchases made PLUS the ENTIRE BT in that month to avoid interest charges.

Thanks, i will call them tommorow

I understood if i had a charge after the bt i would have interest on the whole balance but i wasnt aware of adding a bt when i already had a balance causing that, at least that part of what you stated isnt clearly spelled out in the contract.

Anyway Discover is head and shoulders above that. i did a few balance transfers at the beginning and have new charges every month and everything is zero pct. unfortuneatly i dont presently have a bt offer from disco.

The PCR also has a sub, 100 for 1500 spend first 90 days. i presently have a balance of 147.00 but if i chase the sub i might have a balance at 3/31. I might elect to just pay my current balance and not chase the sub and just do a bt, I have to think it over.

Re: Questions about balance transfers

OmarGB9 — Tue, 11 Jan 2022 10:15:13 GMT

@SUPERSQUID wrote:
@OmarGB9 wrote:
@SUPERSQUID wrote:
@AverageJoesCredit wrote:
@SoCalGardener wrote:
@SUPERSQUID wrote:
Lets say i just got a card with an introductory bt offer, lets say zero pct for 12 months with a 3 pct fee.
I have another cc with 26.99 int rate. i put car repair charges on that card, can i bt to my new card right away?
The same question involves a cash advance. lets say i take a 500 buck cash advance from the 26.99 cc, can i bt that balance to the zero card right away?
What @Aim_High said about BTs not being instantaneous is *very* important, especially where cash advances are concerned.

I haven't done a cash advance in decades, but as I understand it, they typically start incurring interest IMMEDIATELY--and their APRs are very high. So let's say you get a CA on January 11, and you initiate a BT to cover it on January 12, but the BT doesn't hit the account until January 26, that's FOURTEEN days of sky-high interest you're being charged for the CA. If that's okay, fine, but I sure wouldn't want to pay it!
If one wants to do CA and either pay 0 fee or lower interest, CUs are great options. CUs like Navy Fed or Penfed do not frown upon it either unlike many banks. Just a fyi
I definitely have a vehicle repair coming up soon and mechanics arent cheap. i was thinking of charging the repair to my mercury or legacy and quickly doing a bt to my penfed PCR which has a bt offer zero for 12 months. the cutoff date for that bt offer is march 31.
I probably wont take a cash advance but it crossed my mind as something to ask.
so my repair interest can go from 26.99 int to zero quickly and then i can take my time paying it off, cool
Yes, but just keep in mind that if you do a BT to your PCR card, you won't be able to make any purchases on it while carrying that BT; the purchase APR isn't 0%, it's whatever rate you were approved for, and if you charge anything to your card while carrying a BT, you'll have to pay off all purchases made PLUS the ENTIRE BT in that month to avoid interest charges.
Thanks, i will call them tommorow
I understood if i had a charge after the bt i would have interest on the whole balance but i wasnt aware of adding a bt when i already had a balance causing that, at least that part of what you stated isnt clearly spelled out in the contract.
Anyway Discover is head and shoulders above that. i did a few balance transfers at the beginning and have new charges every month and everything is zero pct. unfortuneatly i dont presently have a bt offer from disco.
The PCR also has a sub, 100 for 1500 spend first 90 days. i presently have a balance of 147.00 but if i chase the sub i might have a balance at 3/31. I might elect to just pay my current balance and not chase the sub and just do a bt, I have to think it over.

0% APR promotional balance transfer rate for 12 Months on transfers made from now until March 31, 2022. After that, the APR for the unpaid balance and any new balance transfers will be 17.99%. A 3% balance transfer fee applies to each transfer. This transaction is subject to credit approval. If you take advantage of this balance transfer, you will immediately be charged interest on all purchases made with your credit card unless you pay the entire account balance, including balance transfers, in full each month by the payment due date.

Re: Questions about balance transfers

SUPERSQUID — Tue, 11 Jan 2022 14:30:00 GMT

@OmarGB9 Thank you, you just saved me a ton of money. i just assumed the penfed bt worked like the disco bt, its a whole different animal. last night i crunched the numbers and it was an easy choice just to pay my 147 balance . wait a month and then do the bt at zero, then SD the card except for paying down the balance. i have plenty of other cards to use while the penfed is SD'd, my nfcu cash rewards is 16.99 and 1.5 cb and my comenity mc is 16.99 and 1.5 cb.

my bt will be between 1.5k - 2k so the interest saved is worth way more than that 100 sub. so i will ditch chasing the sub for 100 and opt to pay down to zero and use the bt and save hundreds.

Re: Questions about balance transfers

SoCalGardener — Tue, 11 Jan 2022 19:49:02 GMT

@AverageJoesCredit wrote:
@SoCalGardener wrote:
@SUPERSQUID wrote:
Lets say i just got a card with an introductory bt offer, lets say zero pct for 12 months with a 3 pct fee.
I have another cc with 26.99 int rate. i put car repair charges on that card, can i bt to my new card right away?
The same question involves a cash advance. lets say i take a 500 buck cash advance from the 26.99 cc, can i bt that balance to the zero card right away?
What @Aim_High said about BTs not being instantaneous is *very* important, especially where cash advances are concerned.

I haven't done a cash advance in decades, but as I understand it, they typically start incurring interest IMMEDIATELY--and their APRs are very high. So let's say you get a CA on January 11, and you initiate a BT to cover it on January 12, but the BT doesn't hit the account until January 26, that's FOURTEEN days of sky-high interest you're being charged for the CA. If that's okay, fine, but I sure wouldn't want to pay it!
If one wants to do CA and either pay 0 fee or lower interest, CUs are great options. CUs like Navy Fed or Penfed do not frown upon it either unlike many banks. Just a fyi

But the OP is dealing with a CC that charges 27% interest! For purchases:

"...lets say i take a 500 buck cash advance from the 26.99 cc..."

Extrapolating from that, its CA rate would be AT LEAST that high--which is already outrageous--and probably even more. They weren't asking about cash advances in general, and I responded based on the card they're referring to.

But I do appreciate the general FYI--as noted, it's been decades since the last time I used a CA!

Re: Questions about balance transfers

AverageJoesCredit — Tue, 11 Jan 2022 23:44:58 GMT

@SoCalGardener wrote:
@AverageJoesCredit wrote:
@SoCalGardener wrote:
@SUPERSQUID wrote:
Lets say i just got a card with an introductory bt offer, lets say zero pct for 12 months with a 3 pct fee.
I have another cc with 26.99 int rate. i put car repair charges on that card, can i bt to my new card right away?
The same question involves a cash advance. lets say i take a 500 buck cash advance from the 26.99 cc, can i bt that balance to the zero card right away?
What @Aim_High said about BTs not being instantaneous is *very* important, especially where cash advances are concerned.

I haven't done a cash advance in decades, but as I understand it, they typically start incurring interest IMMEDIATELY--and their APRs are very high. So let's say you get a CA on January 11, and you initiate a BT to cover it on January 12, but the BT doesn't hit the account until January 26, that's FOURTEEN days of sky-high interest you're being charged for the CA. If that's okay, fine, but I sure wouldn't want to pay it!
If one wants to do CA and either pay 0 fee or lower interest, CUs are great options. CUs like Navy Fed or Penfed do not frown upon it either unlike many banks. Just a fyi
But the OP is dealing with a CC that charges 27% interest! For purchases:
"...lets say i take a 500 buck cash advance from the 26.99 cc..."

Extrapolating from that, its CA rate would be AT LEAST that high--which is already outrageous--and probably even more. They weren't asking about cash advances in general, and I responded based on the card they're referring to.

But I do appreciate the general FYI--as noted, it's been decades since the last time I used a CA!

Lol, for sure doing a CA at 26.99 is not recommended .

Re: Questions about balance transfers

SoCalGardener — Wed, 12 Jan 2022 00:06:49 GMT

@AverageJoesCredit wrote:
Lol, for sure doing a CA at 26.99 is not recommended .

No kidding!

I can't even imagine paying that much. Of course, it's not as astronomical as those 'payday loan' places, but still!

Re: Questions about balance transfers

Kforce — Wed, 12 Jan 2022 04:26:50 GMT

The math all comes down to what you can pay per month. If the sub is on a 27% card don't use that card for this charge. (unless you can pay in 3 months & get 100 Sub). A 3% fee and splitting the payments over 11 months is almost 6% APR on original pre fee charges. If you put the repairs on a 17% APR card and make payment to pay off in less than 9 months that would be as good as taking out the bank transfer . If you can pay $200+ per month. I would just put the repairs on one of the 16.99 cards. If you really need the 11-12 months then the BT is the option. (11 month / 0% interest = ~172/mo on 2000).

Re: Questions about balance transfers

SUPERSQUID — Wed, 12 Jan 2022 09:11:11 GMT

@Kforce wrote:
The math all comes down to what you can pay per month. If the sub is on a 27% card don't use that card for this charge. (unless you can pay in 3 months & get 100 Sub). A 3% fee and splitting the payments over 11 months is almost 6% APR on original pre fee charges. If you put the repairs on a 17% APR card and make payment to pay off in less than 9 months that would be as good as taking out the bank transfer . If you can pay $200+ per month. I would just put the repairs on one of the 16.99 cards. If you really need the 11-12 months then the BT is the option. (11 month / 0% interest = ~172/mo on 2000).

Here is my plan,

I got a penfed power cash rewards in december 7.5k sl at 17.99 and a sub 100 for 1500 spend in 90 days and a zero bt for 12 months.

Originally i was going for the sub but have reconsidered because the bt is more valuable.

I have one card with a blance of about 1400 at 26.99 and a 2nd card with about 400 at 26.99.

the repairs i need are 400 - 600 bucks.

My plan is to have the penfed at zero. then i will use the card with a 400 balance to pay for the repairs making the balance on that one 800 - 1000 bucks.

Then i will bt the 1400 card and the 800 - 1000 card to penfed for 12 months at zero and pay them with no interest. during that 12 month period i will SD the penfed card and just pay it down.

All is not lost because my nfcu cash rewards has a sub 250 for 2500 of spend before march 23rd and i just collected the sub from comenity which was 100 for 500 spend in 90.

The penfed bt offer of 12 mos at zero is more valuable than 100 bucks considering i will be transferring about 2400 of high interest debt.