topic Re: Balance Transfers - how is it looked upon by cc comps? in Credit Cards

Balance Transfers - how is it looked upon by cc comps?

natasjlp — Mon, 16 Apr 2012 15:55:36 GMT

I have a balance of about 7k on one cc and have an offer from another cc for a balance transfer which offers 0% interest for 18 months. My question is how will the original cc company take that? I wish to have a long positive relationship with them. Will they lower my CL, consider closing my account, any sort of negative connotations or would they actually be happy and reflect positively because I paid off the balance in full?

Re: Balance Transfers - how is it looked upon by cc comps?

Anonymous — Mon, 16 Apr 2012 15:58:39 GMT

They just might... do absolutely nothing other than take the money.

I did a BT from my BoA account to my Discover account and I've yet to experience any adverse reaction from them.
The company is just getting paid a balance, it still made money, there's no reason to believe that paying that balance in full is going to hurt you. What you read on forums are usually the extreme situations and don't apply to every single person who does a BT and gets that card to 0.

Now if you did a BT and got the card to 0 and never used it again, ever... that's a different story.

Re: Balance Transfers - how is it looked upon by cc comps?

natasjlp — Mon, 16 Apr 2012 16:07:37 GMT

gotcha, do you think it would be wise to just ask that cc directly how they feel about balance transfers or is that like asking the wolf if they like my flock of sheep? (or insert a better analogy here lol)

Re: Balance Transfers - how is it looked upon by cc comps?

Anonymous — Mon, 16 Apr 2012 16:12:36 GMT

Who is it that your transfering from? Most may not care, some like Merrick may, I doubt Capital One would

Re: Balance Transfers - how is it looked upon by cc comps?

Anonymous — Mon, 16 Apr 2012 16:14:20 GMT

@natasjlp wrote:
gotcha, do you think it would be wise to just ask that cc directly how they feel about balance transfers or is that like asking the wolf if they like my flock of sheep? (or insert a better analogy here lol)

This would be like asking permission to pay off your bills.

Re: Balance Transfers - how is it looked upon by cc comps?

natasjlp — Mon, 16 Apr 2012 16:15:52 GMT

this particular case would be 7k from chase preferred to a new citibank account - if I apply for it, why wouldn't I transfer the balance. I guess that is what I am trying to figure out - pros and cons. the obvious pro is no interest on 7k lol! the cons always seem hidden in this secret world of credit - - - > which is why I am here writing this post.

Re: Balance Transfers - how is it looked upon by cc comps?

Anonymous — Mon, 16 Apr 2012 16:23:53 GMT

@natasjlp wrote:
gotcha, do you think it would be wise to just ask that cc directly how they feel about balance transfers or is that like asking the wolf if they like my flock of sheep? (or insert a better analogy here lol)

I believe you are over thinking it here. Do the balance transfer. As long as you use the card now and then, they will make money from the swipe fees. I don't think there will be a problem.

Re: Balance Transfers - how is it looked upon by cc comps?

improvingmycredit — Mon, 16 Apr 2012 16:29:27 GMT

@Anonymous wrote:
@natasjlp wrote:
gotcha, do you think it would be wise to just ask that cc directly how they feel about balance transfers or is that like asking the wolf if they like my flock of sheep? (or insert a better analogy here lol)
I believe you are over thinking it here. Do the balance transfer. As long as you use the card now and then, they will make money from the swipe fees. I don't think there will be a problem.

Do the balance transfer. I don't know any bank that would be unhappy to recieve a check paying off a balance.

Re: Balance Transfers - how is it looked upon by cc comps?

Anonymous — Mon, 16 Apr 2012 16:30:48 GMT

@Anonymous wrote:
I believe you are over thinking it here. Do the balance transfer. As long as you use the card now and then, they will make money from the swipe fees. I don't think there will be a problem.

Exactly.

Re: Balance Transfers - how is it looked upon by cc comps?

Anonymous — Mon, 16 Apr 2012 16:31:43 GMT

+1 I dont think Chase really cares as long as your not late....

Re: Balance Transfers - how is it looked upon by cc comps?

themeggerz — Mon, 16 Apr 2012 16:35:41 GMT

The worst that could happen is they offer you 0% on Chase to keep your balance (hoping that you will not pay it off in full in time and get hit with deferred interest).

Re: Balance Transfers - how is it looked upon by cc comps?

crunching_numbers — Mon, 16 Apr 2012 16:46:14 GMT

@themeggerz wrote:
The worst that could happen is they offer you 0% on Chase to keep your balance (hoping that you will not pay it off in full in time and get hit with deferred interest).

Most BT offers do not charge you "deferred interest". Those are from special financing offers like no interest if paid in 90 days. With BT's, after your promotional period runs out, you just start paying your regular interest rate on whatever balance remains.

When I BT'd out of Chase, they gave me a BT offer to BT back in.

Re: Balance Transfers - how is it looked upon by cc comps?

jamesdwi — Mon, 16 Apr 2012 16:47:01 GMT

@natasjlp wrote:
I have a balance of about 7k on one cc and have an offer from another cc for a balance transfer ,which offers 0% interest for 18 months. My question is how will the original cc company take that? I wish to have a long positive relationship with them. Will they lower my CL, consider closing my account, any sort of negative connotations or would they actually be happy and reflect positively because I paid off the balance in full?

you are probably over thinking it, I'm not even sure the companies even track where the payment comes from, its either a paper or electronic check tthat appears, and it would hard to track if it came from a credit card company or from a bank. for instance if you BT's to CapOne or Chase both have banking divisions so making it hard to tell, and do CCC really want to track every account number for each new company or when they get new numbers or aquired.

If a CCC did track that the balance was paid off using a BT, it would be a sign that the company has a potential problem, it shows that you have better offers, deals interest rates availble than the company is offering. so they could be loosing a customer or lessen the amount of money they are making off you. But most card companies just don't care they made there money off the swipe (1 - 3%) and any interest you paid them. Once it paid off they are free to use that money for otehr users purchases, and they don't have to worry about you defaulting on the payments and perhaps you will charge more now.

Re: Balance Transfers - how is it looked upon by cc comps?

Anonymous — Mon, 16 Apr 2012 17:12:59 GMT

Just do it. These are account features and no one is going to have an issue with it.

Re: Balance Transfers - how is it looked upon by cc comps?

lolabelle — Mon, 16 Apr 2012 17:24:40 GMT

@crunching_numbers wrote:

...

When I BT'd out of Chase, they gave me a BT offer to BT back in.

That's my experience, too.

Purely anecdotal, but I've shuffled balances from Chase a few times over the past few years and there's never been any negative result. I do seem to get frequent balance transfers offers from them, though.

Re: Balance Transfers - how is it looked upon by cc comps?

natasjlp — Mon, 30 Apr 2012 17:30:24 GMT

well... there I was ready to move forward with a balance transfer for about $5k. then I took a look at the fees involved..

$10 minimum or 4% which ever is higher. This works out to be $200!! really? I'd rather pay the standard interest rate on the original card.

Are all or most CC transfer fees structured like this?? forget about it.. maybe it's negotiable? yeesh..

Re: Balance Transfers - how is it looked upon by cc comps?

MarineVietVet — Mon, 30 Apr 2012 17:34:09 GMT

@natasjlp wrote:
well... there I was ready to move forward with a balance transfer for about $5k. then I took a look at the fees involved..

$10 minimum or 4% which ever is higher. This works out to be $200!! really? I'd rather pay the standard interest rate on the original card.

Are all or most CC transfer fees structured like this?? forget about it.. maybe it's negotiable? yeesh..

Most of the ones that I've been offered are usually 3-5%. But I've seen posts here of some 0% BT transfer fees.

I've never tried to negotiate a BT fee but I guess you could try.

Re: Balance Transfers - how is it looked upon by cc comps?

crunching_numbers — Mon, 30 Apr 2012 17:41:35 GMT

You need to calculate out what the interest would cost you for the timeframe of the BT. If you post your interest rate you have now on the Chase card you are transferring out of, and how much a month you plan to pay off against the transfer, and how many months that transfer was for (6 mos, 12 mos, 15 mos, 18 mos...) then we can help you determine how much you might save even at 4%. Remember, that is 4% one time, instead of interest every month.