topic Re: PSECU Balance Transfers in Credit Cards

PSECU Balance Transfers

Anonymous — Mon, 13 Jun 2011 23:52:06 GMT

Could anyone please explain to me a bit about how balance transfers work?

I was contemplating doing a transfer from my Amex to my PSECU Visa for the 2.9% rate. But I'm a bit confused about a few things. (I actually can afford to pay it down, but it would be a few days after my statement closes lol. I was also considering using it after I buy my TV so I could get all the benefits of purchasing an Amex, and still be able to pay it over a month or two)

Is doing a balance transfer the same basic thing as using cash advance/online bill pay?

Is it done electronically or check by mail?

Can Amex tell that it's a balance transfer? (don't wanna anger the FR gods)

Am I just better off doing a cash advance and paying like I normally would? (the 2.9% vs 9.9% would be nice just in case, but theoretically I'll be able to pay most if not all of it back off before the statement cuts anyway.)

Re: PSECU Balance Transfers

DI — Tue, 14 Jun 2011 01:14:55 GMT

BT works by you requesting PSECU to pay off an account with some other bank. They may charge a BT fee. The balance that PSECU pay off for you on another card is transferred to your PSECU acccount.

Doing a BT is not the same as a cash advance. Cash advances have a higher APR rate. With BT, the bank or CU may offer you 0% APR for so many months. Unlike a BT, interest is accrued when the cash advances request is processed.

You have the optiom to request a BT electronically or by mail. It depends on the technology the bank or CU uses. Moreover, all BT request payments are not sent electronically. Sometimes a check will have to be mailed to the bank you're transferring funds to.

AMEX can only see the possibilty that you're switching credit around rather than paying things off.

You're better off doing the BT rather than cash advance. Cash advance will cost you more.

I hope I was able to answer all your questions.

Re: PSECU Balance Transfers

Anonymous — Tue, 14 Jun 2011 12:24:23 GMT

@DI wrote:
BT works by you requesting PSECU to pay off an account with some other bank. They may charge a BT fee. The balance that PSECU pay off for you on another card is transferred to your PSECU acccount.

Doing a BT is not the same as a cash advance. Cash advances have a higher APR rate. With BT, the bank or CU may offer you 0% APR for so many months. Unlike a BT, interest is accrued when the cash advances request is processed.

You have the optiom to request a BT electronically or by mail. It depends on the technology the bank or CU uses. Moreover, all BT request payments are not sent electronically. Sometimes a check will have to be mailed to the bank you're transferring funds to.

AMEX can only see the possibilty that you're switching credit around rather than paying things off.

You're better off doing the BT rather than cash advance. Cash advance will cost you more.

I hope I was able to answer all your questions.

+1 on all that good information. Only one minor note, as some (many... all of mine) banks treat a BT as a cash advance with respect to interest accruing from the day of the transfer (there is no grace period). Check the verbiage on the offer to make sure. (It doesn't make a HUGE difference in terms of actual $$ interest in the big picture, but worth noting, I think).

Oh, one other thing... Never count on a bank to process a BT quickly... you should never use it to try to make a payment before a due date, or expect it to post/clear prior to another statement closing (PSECU is especially slow, as they process (IME) all transfers via check/snail mail. Took an average of 7-10 days to clear my other banks).