topic Re: Balance Transfer Bank Discretion? in Credit Cards

Balance Transfer Bank Discretion?

twpounds — Fri, 30 Aug 2024 20:55:06 GMT

I've recently been looking at applying for a 0% balance transfer card to help my wife with some really old/bad credit card debts. None of these credit card debts are delinquent, just very high balances and very high interest. A lot of this was done before we were married and we're trying to figure it out. I have very good credit and utilization isn't extremely high so I feel pretty good about being approved for a new card on my own with her places on it as an authorized user. My question after researching a lot of these types of cards is that they typically have a clause stating that a balance transfer is at the bank's discretion. I wouldn't want to apply for a new card if the sole intention is to use it as a means to roll the high interest debt into a 0% card. Could anyone tell me what reasons the bank might have to issue a card, but deny a balance transfer? No purchases would be made with this card.

Re: Balance Transfer Bank Discretion?

pizzadude — Fri, 30 Aug 2024 21:11:38 GMT

I think they'd do this if for some reason they suspected fraud, but I've rarely ( if ever ) heard of creditors outright rejecting a balance transfer request.

Re: Balance Transfer Bank Discretion?

twpounds — Fri, 30 Aug 2024 21:19:23 GMT

I appreciate it. Definitely no fraud involved, just some poor decisions. I don't have many credit cards myself and have been very hesitant about getting anymore. We have been trying to snowball, but the problem is the balances are really high combined with life happening like auto repairs/house maintenance type things. We are at a point that it's affecting our family in a negative way and we need a way to kick the snowball down the mountain and see some of these balances going down. We have been paying the minimums so nothing is late, but it doesn't leave very much at all to live off of. I've run the numbers and with a 0% balance transfer for 18-21 months, we could actually begin taking back some of our money somewhat quickly.

Re: Balance Transfer Bank Discretion?

FicoMike0 — Fri, 30 Aug 2024 21:41:58 GMT

here's a link

https://www.doctorofcredit.com/list-of-0-apr-credit-card-offers/

Re: Balance Transfer Bank Discretion?

GZG — Fri, 30 Aug 2024 21:59:03 GMT

@twpounds wrote:
I've recently been looking at applying for a 0% balance transfer card to help my wife with some really old/bad credit card debts. None of these credit card debts are delinquent, just very high balances and very high interest. A lot of this was done before we were married and we're trying to figure it out. I have very good credit and utilization isn't extremely high so I feel pretty good about being approved for a new card on my own with her places on it as an authorized user. My question after researching a lot of these types of cards is that they typically have a clause stating that a balance transfer is at the bank's discretion. I wouldn't want to apply for a new card if the sole intention is to use it as a means to roll the high interest debt into a 0% card. Could anyone tell me what reasons the bank might have to issue a card, but deny a balance transfer? No purchases would be made with this card.

the far bigger concern would be not getting a high enough limit for the balances you want to transfer over as ^^ said above, BT's don't typically just get denied for some black box reason

if you have a discover card, consider asking them if they have any BT offers for you, same with Chase, you can move your current limits over to a Chase Slate that you apply for, for the 18 months 0% APR if they give you a small upfront limit

Re: Balance Transfer Bank Discretion?

FlaDude — Sat, 31 Aug 2024 01:29:59 GMT

I've used 0% BT cards a lot over the years and never had a problem. Make sure to check the fees, a few years back 0% with $0 fees wasn't too hard to find, now the BT fees range from 3-5% with most lenders.

Re: Balance Transfer Bank Discretion?

twpounds — Sat, 31 Aug 2024 02:01:12 GMT

I've been looking at some of the balance transfer cards and it seems that they typically have a short time available to complete the transfer. Generally, 2-4 months on 0% transfers for 18-21 month introductory periods. Is that typically how these types of cards work? Ideally, I'd like to start slowly and see what could be paid down in like 6 months and if all is well then transfer more for the remaining 12-15 months. If the time periods are that short then you have to be very careful. If I was to move a large sum, then the minimum payment may be too large to make. If I moved too little then it just spreads out a smaller balance over a longer time, but you really don't see a major reduction in balance. What is the best way to use these cards? Do you typically know how much credit limit you would be approved for before actually accepting the card? Is it like a pre approval type thing where you could change your mind if the credit limit was very small?

Re: Balance Transfer Bank Discretion?

Xanthos472 — Sat, 31 Aug 2024 03:12:51 GMT

@twpounds wrote:
I've been looking at some of the balance transfer cards and it seems that they typically have a short time available to complete the transfer. Generally, 2-4 months on 0% transfers for 18-21 month introductory periods. Is that typically how these types of cards work? Ideally, I'd like to start slowly and see what could be paid down in like 6 months and if all is well then transfer more for the remaining 12-15 months. If the time periods are that short then you have to be very careful. If I was to move a large sum, then the minimum payment may be too large to make. If I moved too little then it just spreads out a smaller balance over a longer time, but you really don't see a major reduction in balance. What is the best way to use these cards? Do you typically know how much credit limit you would be approved for before actually accepting the card? Is it like a pre approval type thing where you could change your mind if the credit limit was very small?

Don't believe I've seen any amounts or credit scores mentioned, which would be quite helpful in the context of providing advice.

With regards to issues, neither I nor my wife have run into any; and we've BT'd at least 400K between us in the last 4-5 years.

For minimum payments: just to give an example, wife is currently running out the clock on a BT check offer on a Citi Doublecash.

Terms were as follows; 3% BT fee paid up front on the amount transferred, and 0.99% ongoing APR.

At the time of use, the offer length was 18 months. Minimum payment was $240-odd to start, with roughly $20 of that being interest from the 0.99% interest.

This was with a credit limit of 22K odd and the check being used for almost all of the limit.

Re: Balance Transfer Bank Discretion?

twpounds — Sun, 01 Sep 2024 16:44:25 GMT

@Xanthos472 wrote:
@twpounds wrote:
I've been looking at some of the balance transfer cards and it seems that they typically have a short time available to complete the transfer. Generally, 2-4 months on 0% transfers for 18-21 month introductory periods. Is that typically how these types of cards work? Ideally, I'd like to start slowly and see what could be paid down in like 6 months and if all is well then transfer more for the remaining 12-15 months. If the time periods are that short then you have to be very careful. If I was to move a large sum, then the minimum payment may be too large to make. If I moved too little then it just spreads out a smaller balance over a longer time, but you really don't see a major reduction in balance. What is the best way to use these cards? Do you typically know how much credit limit you would be approved for before actually accepting the card? Is it like a pre approval type thing where you could change your mind if the credit limit was very small?
Don't believe I've seen any amounts or credit scores mentioned, which would be quite helpful in the context of providing advice.

With regards to issues, neither I nor my wife have run into any; and we've BT'd at least 400K between us in the last 4-5 years.

For minimum payments: just to give an example, wife is currently running out the clock on a BT check offer on a Citi Doublecash.

Terms were as follows; 3% BT fee paid up front on the amount transferred, and 0.99% ongoing APR.

At the time of use, the offer length was 18 months. Minimum payment was $240-odd to start, with roughly $20 of that being interest from the 0.99% interest.

This was with a credit limit of 22K odd and the check being used for almost all of the limit.

Ok so here's the scenario. My credit scores range from 790-801. Hers are very low and I really don't know exactly how low. We have a combined total of $48k in cc debt and a balance on a car of $7k. We do have a mortgage, but we are handling that okay. I opened a Citi card yesterday with a $15k limit on it at 0% for 21 months. My intention is to balance transfer $15k of the $48k. So yeah maxing it out. I know it's not ideal, but we would be able to pay that $15k off within the 21 months. $5k of the $48k is on a deferred interest promotion for mattresses we bought and that would be paid off around the same time as the $15k Citi card. The remaining $28k would still be earning interest and we would try to snowball it the best we could. The plan is to wait until after the 1st of the year for tax purposes and pull some funds from a beneficiary IRA out to finish paying the car off. At that point the car would be around $3k. The car note is a little over $600/month. That $600/month would be added to our existing snowball of about $300/month plus the minimum monthly payments for the remaining $28k. Would be about $1.200/month payment going towards the $28k. That would take us approximately 2 1/2 years to knock out the $28k after picking up some from the snowball growing. Am I thinking about this correctly? It makes me nervous to max out the Citi card but I've thought of a lot of scenarios and none are exactly comfortable. Would it be more beneficial to open a 2nd balance transfer card to split the $15k up and possibly add some of the $28k to the 2nd card so the utilization isn't maxed out? I know my scores are gonna take a hit which does make me nervous, but I guess I'm wondering how much of a hit would this be? I appreciate any help you all can give. Thanks!

Re: Balance Transfer Bank Discretion?

twpounds — Tue, 03 Sep 2024 12:46:25 GMT

Does anyone have any advice on this situation?

Re: Balance Transfer Bank Discretion?

FicoMike0 — Tue, 03 Sep 2024 13:34:46 GMT

This is a finance over fico situation. Id get the bt cards to cover as much of the debt as possible. Keep in mind, as soon as you max out the bt card(s), your scores are going to nosedive. You won't be able to get more credit then, so do it now. When your scores plummet, forget that, you have all the credit you can afford anyway. Look hard at the bt fees as well. If you could float the entire $48k at zero for 21 months, you'll be better off, even if you can't pay it all off.

You should really make an extraordinary effort to pay it off. I'd probably leave the car loan, assuming it's much lower interest than the cc debt. Lay out all debts, amount and rate. Hit the highest rate first, that's what will get you debt free quickest.

Re: Balance Transfer Bank Discretion?

Anonymous — Tue, 03 Sep 2024 13:35:48 GMT

@twpounds wrote:
I've recently been looking at applying for a 0% balance transfer card to help my wife with some really old/bad credit card debts. None of these credit card debts are delinquent, just very high balances and very high interest. A lot of this was done before we were married and we're trying to figure it out. I have very good credit and utilization isn't extremely high so I feel pretty good about being approved for a new card on my own with her places on it as an authorized user. My question after researching a lot of these types of cards is that they typically have a clause stating that a balance transfer is at the bank's discretion. I wouldn't want to apply for a new card if the sole intention is to use it as a means to roll the high interest debt into a 0% card. Could anyone tell me what reasons the bank might have to issue a card, but deny a balance transfer? No purchases would be made with this card.

As others have said, I wouldn't worry about bank discretion, it's true for almost everything as boilerplate.

Look at Chase on transactions, and others are the same:

We are not obligated to honor every transaction, and we may close or suspend your
account. Sometimes we close accounts based not on your actions or inactions, but on our
business needs.
We may decline transactions for any reason, including: operational matters,
the account is in default, or suspected fraudulent or unlawful activity. We
are not responsible for any losses associated with a declined transaction.

So in theory I could apply for a card for the great rewards on my major spending, and then discover I cannot make any transactions! But it doesn't happen

Re: Balance Transfer Bank Discretion?

twpounds — Tue, 03 Sep 2024 13:49:45 GMT

I appreciate the responses. I haven't done the balance transfer to max out the Citi card yet. Just so I understand, you believe I should try to open another balance transfer card and try to get as much of the current debt as possible transferred between that card and the Citi one? It really does scare me to death at the thought of maxing out credit cards but, if that's the best option then we might need to do that. The only reason I'm considering paying the car off is because that's one of our largest monthly payments and it would free that money up to tackle the debt at 0% interest. I appreciate any other advice any of you all have.

How far do you believe my credit would tank and for how long? How long do you believe it would take to bring it back up to where it's at now?

Re: Balance Transfer Bank Discretion?

MySunrise271 — Tue, 03 Sep 2024 15:30:12 GMT

@twpounds wrote:
I appreciate the responses. I haven't done the balance transfer to max out the Citi card yet. Just so I understand, you believe I should try to open another balance transfer card and try to get as much of the current debt as possible transferred between that card and the Citi one? It really does scare me to death at the thought of maxing out credit cards but, if that's the best option then we might need to do that. The only reason I'm considering paying the car off is because that's one of our largest monthly payments and it would free that money up to tackle the debt at 0% interest. I appreciate any other advice any of you all have.

How far do you believe my credit would tank and for how long? How long do you believe it would take to bring it back up to where it's at now?

The phrase ‘finances over fico’ means your financial well-being takes priority over FICO scores. That said what previous statements are suggesting is to not be concerned about your scores, utilization, etc. Just focus on getting a handle on the debt. Your scores and overall credit profile will rebound as you eliminate the debt.

It would be ideal to have an additional 0% BT credit card (if you can be approved) to help offset the current 0% Citi offer of $15k. Breaking into a retirement account I would leave as the absolute last possible options. Have you run the scenario of what it could look like if you move the car loan at $7k onto the 0% Citi BT? How would that affect your cash flow to adjust other debt?

Re: Balance Transfer Bank Discretion?

Anonymous — Tue, 03 Sep 2024 16:25:49 GMT

@MySunrise271 wrote:
Breaking into a retirement account I would leave as the absolute last possible options.

@twpounds You said beneficiary IRA, this is one you inherited? If so, and you have only 10 years to empty, using it isn't so bad. If it is your own IRA, or one you are able to merge with yours, then @MySunrise271 caution is right!

Re: Balance Transfer Bank Discretion?

twpounds — Tue, 03 Sep 2024 16:44:27 GMT

@MySunrise271 wrote:
@twpounds wrote:
I appreciate the responses. I haven't done the balance transfer to max out the Citi card yet. Just so I understand, you believe I should try to open another balance transfer card and try to get as much of the current debt as possible transferred between that card and the Citi one? It really does scare me to death at the thought of maxing out credit cards but, if that's the best option then we might need to do that. The only reason I'm considering paying the car off is because that's one of our largest monthly payments and it would free that money up to tackle the debt at 0% interest. I appreciate any other advice any of you all have.

How far do you believe my credit would tank and for how long? How long do you believe it would take to bring it back up to where it's at now?
The phrase ‘finances over fico’ means your financial well-being takes priority over FICO scores. That said what previous statements are suggesting is to not be concerned about your scores, utilization, etc. Just focus on getting a handle on the debt. Your scores and overall credit profile will rebound as you eliminate the debt.

It would be ideal to have an additional 0% BT credit card (if you can be approved) to help offset the current 0% Citi offer of $15k. Breaking into a retirement account I would leave as the absolute last possible options. Have you run the scenario of what it could look like if you move the car loan at $7k onto the 0% Citi BT? How would that affect your cash flow to adjust other debt?

Thank you for responding. This is the type of advice I'm looking for. I'm trying to salvage as much as possible, but if eliminating the debt takes precedence over scores then i guess that's what needs to be done. I guess I am just looking for advice from people that know more about this than me. When you say to offset the 0% Citi card, are you talking about splitting balances? If I'm approved for an additional card, should I be looking at maxing out both of them?
I have not run the numbers on transferring the car note because my gut tells me to take the $600/month car note back and use it towards building a snowball on the debt. This is one of our biggest expenses and I can actually see where an extra $600/month towards debt would start reducing the balances.

Re: Balance Transfer Bank Discretion?

twpounds — Tue, 03 Sep 2024 16:46:50 GMT

@Anonymous wrote:
@MySunrise271 wrote:
Breaking into a retirement account I would leave as the absolute last possible options.
@twpounds You said beneficiary IRA, this is one you inherited? If so, and you have only 10 years to empty, using it isn't so bad. If it is your own IRA, or one you are able to merge with yours, then @MySunrise271 caution is right!

Yes this is one that I inherited. I've been hanging onto it as basically our emergency fund plus I didn't want to have to pay the 25% tax on it. I'm not aware of a 10 year timeframe to use it as my mom will have passed 9 years ago in January.

Re: Balance Transfer Bank Discretion?

MySunrise271 — Tue, 03 Sep 2024 20:46:09 GMT

@twpounds wrote:
@MySunrise271 wrote:
@twpounds wrote:
I appreciate the responses. I haven't done the balance transfer to max out the Citi card yet. Just so I understand, you believe I should try to open another balance transfer card and try to get as much of the current debt as possible transferred between that card and the Citi one? It really does scare me to death at the thought of maxing out credit cards but, if that's the best option then we might need to do that. The only reason I'm considering paying the car off is because that's one of our largest monthly payments and it would free that money up to tackle the debt at 0% interest. I appreciate any other advice any of you all have.

How far do you believe my credit would tank and for how long? How long do you believe it would take to bring it back up to where it's at now?
The phrase ‘finances over fico’ means your financial well-being takes priority over FICO scores. That said what previous statements are suggesting is to not be concerned about your scores, utilization, etc. Just focus on getting a handle on the debt. Your scores and overall credit profile will rebound as you eliminate the debt.

It would be ideal to have an additional 0% BT credit card (if you can be approved) to help offset the current 0% Citi offer of $15k. Breaking into a retirement account I would leave as the absolute last possible options. Have you run the scenario of what it could look like if you move the car loan at $7k onto the 0% Citi BT? How would that affect your cash flow to adjust other debt?

Thank you for responding. This is the type of advice I'm looking for. I'm trying to salvage as much as possible, but if eliminating the debt takes precedence over scores then i guess that's what needs to be done. I guess I am just looking for advice from people that know more about this than me. When you say to offset the 0% Citi card, are you talking about splitting balances? If I'm approved for an additional card, should I be looking at maxing out both of them?
I have not run the numbers on transferring the car note because my gut tells me to take the $600/month car note back and use it towards building a snowball on the debt. This is one of our biggest expenses and I can actually see where an extra $600/month towards debt would start reducing the balances.

I may have used ‘offset incorrectly. I meant if you can get approved for a second BT credit card to add to your current BT credit card then you could spread the debt across two cards and possibly only use 30-40% (or less) of each ones available credit limit. Also I know Citi will BT funds to be directly deposited into your checking account, Discover will also. Then you take that money pay off the car loan. Instantly you have freeded up $600 car payment for cash flow. Then see how you can work your other debts down moving as much as possible to lowest interest cards.

Re: Balance Transfer Bank Discretion?

twpounds — Tue, 03 Sep 2024 19:57:45 GMT

@MySunrise271 wrote:
@twpounds wrote:
@MySunrise271 wrote:
@twpounds wrote:
I appreciate the responses. I haven't done the balance transfer to max out the Citi card yet. Just so I understand, you believe I should try to open another balance transfer card and try to get as much of the current debt as possible transferred between that card and the Citi one? It really does scare me to death at the thought of maxing out credit cards but, if that's the best option then we might need to do that. The only reason I'm considering paying the car off is because that's one of our largest monthly payments and it would free that money up to tackle the debt at 0% interest. I appreciate any other advice any of you all have.

How far do you believe my credit would tank and for how long? How long do you believe it would take to bring it back up to where it's at now?
The phrase ‘finances over fico’ means your financial well-being takes priority over FICO scores. That said what previous statements are suggesting is to not be concerned about your scores, utilization, etc. Just focus on getting a handle on the debt. Your scores and overall credit profile will rebound as you eliminate the debt.

It would be ideal to have an additional 0% BT credit card (if you can be approved) to help offset the current 0% Citi offer of $15k. Breaking into a retirement account I would leave as the absolute last possible options. Have you run the scenario of what it could look like if you move the car loan at $7k onto the 0% Citi BT? How would that affect your cash flow to adjust other debt?

Thank you for responding. This is the type of advice I'm looking for. I'm trying to salvage as much as possible, but if eliminating the debt takes precedence over scores then i guess that's what needs to be done. I guess I am just looking for advice from people that know more about this than me. When you say to offset the 0% Citi card, are you talking about splitting balances? If I'm approved for an additional card, should I be looking at maxing out both of them?
I have not run the numbers on transferring the car note because my gut tells me to take the $600/month car note back and use it towards building a snowball on the debt. This is one of our biggest expenses and I can actually see where an extra $600/month towards debt would start reducing the balances.

I may have used ‘offset incorrectly. I meant if you can get approved for a second BT credit card to add to your current BT credit card then you could spread the debt across two cards and possibly only use 30-40% (or less) of each ones available credit limit. Also I know Citi also for BT funds to be directly deposited into your checking account, Discover will also. Then you take that money pay off the car loa. Instantly you have freeded up $600 car payment for cash flow. Then see how you can work your other debts down moving as much as possible to lowest interest cards.

Thank you so much for your response. Any advice is appreciated as we are trying to work through this difficult situation. Please be patient with me as I have a few other questions. So assuming I could get another $15k BT card that would give me $30k in 0% interest cards to put towards the total of $39k in CC debt and $7k on the car. Even if I maxed 2 $15k 0% interest cards out that would leave us with $16k in debt. Would it be better to max them out or do as you suggest and put $7,500 on each card for utilization purposes? If I don't max them out, I would be left with $24k in high interest CC debt plus the $7k balance on the car, but the utilization would be a lot lower.

I guess I'm looking at basically 2 options:

1. Apply for another 0% BT card and hope for a high enough limit(assuming $15k). Then max out the $30k with high interest CC debt. That would leave me with $9k high interest CC debt that we'd try to snowball plus the $7k car balance. Still wouldn't have the $600/month "extra cash flow" in this case.

2. Apply for the 2nd BT card same as above, but BT the $7k for the car. Then BT $23k between the 2 cards. This would leave me with $16k in high interest CC debt but no car note and $600/month extra.

I know that none of these scenarios would be great. I'm just trying to figure out the lesser of the 2 evils. What do you think about these 2 options? Do BT cards typically have lower minimum payments or would they set your payment during the 21 months equally for the balance that you transfer?

Re: Balance Transfer Bank Discretion?

Xanthos472 — Tue, 03 Sep 2024 20:13:34 GMT

Apply for membership with BECU. They handed DW a 40K limit with no POI. 0% for 12 months AND no BT fee. DW maxed it out, scores are still in 750-760+ FICO 8 range with 32% total utilization. Minimum payment would be approx. $1K/month. Plenty of room for car included.