topic Re: Balance Transfer question in Credit Cards

Balance Transfer question

DaveSignal — Thu, 10 Jan 2013 05:08:30 GMT

I initiated a balance transfer with Navy Federal to pay my SDFCU card for $4000 on 9Jan2013. I only did this because I don't currently use my NFCU card for anything and they are currently offering a 0% interest for 12 months with no fees BT promotion. NFCU states on the website that this could possibly take up to 10 days, which would be after my credit card due date on 15Jan2013. If this hasn't gone through by the night of 14Jan, I plan on using the online SDFCU service to pay my statement balance (around $3000) in full in order to avoid interest charges.

My question is if I pay the statement balance and then, a few days later, SDFCU gets a payment from NFCU which is around $3000 more than my credit card's current balance, will they accept it?

What if I only pay the minimum due before the due date and then a few days later they get the NFCU balance transfer? Will I get charged a boatload of interest fees? Has anyone ever tried asking a bank to extend the grace period?

Any advice is appreciated.

Re: Balance Transfer question

chnceit — Thu, 10 Jan 2013 05:12:37 GMT

SDFCU will accept the payment and will credit your account

I would just pay the minimum on your SDFCU and let then get credit the minimum payment once the BT is complete.

Re: Balance Transfer question

calihlove75 — Thu, 10 Jan 2013 05:17:20 GMT

I did the bank transfer on the 5th and it finally posted to NFCU and the GE account I paid off today. If I were you I would just pay the minimum.

Re: Balance Transfer question

DaveSignal — Thu, 10 Jan 2013 05:19:54 GMT

I have never been charged interest on that card though, since I always pay the statement balance in full. If I pay the minimum, and then the full balance gets paid a few days after the due date, doesn't this mean I will get charged interest for the whole $3000 statement balance?

Re: Balance Transfer question

visorboy1974 — Thu, 10 Jan 2013 05:38:30 GMT

@DaveSignal wrote:
I have never been charged interest on that card though, since I always pay the statement balance in full. If I pay the minimum, and then the full balance gets paid a few days after the due date, doesn't this mean I will get charged interest for the whole $3000 statement balance?

You'll get charged interest on the whole $3000 minus the min payment. However, you'll likely have another hassle getting the BT money mailed back to you in the form of a check, and will need to wait a few days to get that returned to you.

Re: Balance Transfer question

chnceit — Thu, 10 Jan 2013 05:41:41 GMT

Yes you will get charged the interest if it expires on that date.... Most BT's take up to 2 weeks. If I were you I wouldnt play the what if game call your CC and see if they will reimburse you by check for any credits. Most companies offer to reimburse.

Re: Balance Transfer question

DaveSignal — Thu, 10 Jan 2013 05:44:04 GMT

@visorboy1974 wrote:
@DaveSignal wrote:
I have never been charged interest on that card though, since I always pay the statement balance in full. If I pay the minimum, and then the full balance gets paid a few days after the due date, doesn't this mean I will get charged interest for the whole $3000 statement balance?
You'll get charged interest on the whole $3000 minus the min payment. However, you'll likely have another hassle getting the BT money mailed back to you in the form of a check, and will need to wait a few days to get that returned to you.

The card is only 6.99%APR, but 6.99% of $3000 is about $210, which seems like a decent amount of money to pay for no good reason other than I wanted to try out the NFCU BT and pay it a little more slowly. I think I will try to talk to SDFCU and see if they will make a deal.... possibly I can get the due date changed or get them to waive the interest charge.

Re: Balance Transfer question

visorboy1974 — Thu, 10 Jan 2013 05:52:26 GMT

@DaveSignal wrote:
@visorboy1974 wrote:
@DaveSignal wrote:
I have never been charged interest on that card though, since I always pay the statement balance in full. If I pay the minimum, and then the full balance gets paid a few days after the due date, doesn't this mean I will get charged interest for the whole $3000 statement balance?
You'll get charged interest on the whole $3000 minus the min payment. However, you'll likely have another hassle getting the BT money mailed back to you in the form of a check, and will need to wait a few days to get that returned to you.
The card is only 6.99%APR, but 6.99% of $3000 is about $210, which seems like a decent amount of money to pay for no good reason other than I wanted to try out the NFCU BT and pay it a little more slowly. I think I will try to talk to SDFCU and see if they will make a deal.... possibly I can get the due date changed or get them to waive the interest charge.

@Divide that 6.99 by 12. I paid about $19 interest on my last statement of $3300 @ 6.99%.

Re: Balance Transfer question

Platinum — Thu, 10 Jan 2013 06:03:07 GMT

@DaveSignal wrote:
@visorboy1974 wrote:
@DaveSignal wrote:
I have never been charged interest on that card though, since I always pay the statement balance in full. If I pay the minimum, and then the full balance gets paid a few days after the due date, doesn't this mean I will get charged interest for the whole $3000 statement balance?
You'll get charged interest on the whole $3000 minus the min payment. However, you'll likely have another hassle getting the BT money mailed back to you in the form of a check, and will need to wait a few days to get that returned to you.
The card is only 6.99%APR, but 6.99% of $3000 is about $210, which seems like a decent amount of money to pay for no good reason other than I wanted to try out the NFCU BT and pay it a little more slowly. I think I will try to talk to SDFCU and see if they will make a deal.... possibly I can get the due date changed or get them to waive the interest charge.

You will pay $17.48 interest, not $210.

Re: Balance Transfer question

jsucool76 — Thu, 10 Jan 2013 06:03:15 GMT

+1 to visorboy.

The 6.99% is an APR. Monthly interest would be divided by 12, daily by 365

:-)

Re: Balance Transfer question

DaveSignal — Thu, 10 Jan 2013 06:17:46 GMT

ahh... well thank-you visorboy and others for reminding me. Its been awhile since I've been charged interest, so it slipped my mind the APR is "ANNUAL". but $18 is not bad at all. I might as well just pay the minimum.

Re: Balance Transfer question

DaveSignal — Tue, 15 Jan 2013 19:52:27 GMT

UPDATE: The NFCU balance transfer was very fast. BT payments were applied to both accounts requested before the due dates. So I don't even have to pay $17 in interest! This NFCU BT thing is a good deal, but they are only offering it for a few more weeks, so now is an opportune time to try it out if anyone is thinking about it.

Re: Balance Transfer question

Anonymous — Tue, 15 Jan 2013 22:14:37 GMT

I'm so glad you asked this question, because I was wondering the same thing and getting ready to post my own thread. I paid off my Barclays Apple card and the amount has posted to my NFCU card plus I got a letter from them stating that they have sent off the check. Barclays has yet to post that payment and my statement cut today actually. So I'll be paying the minimum due so as to not create any issues.

NFCU did state in that letter that because it could take 7-10 business days that I may have to make the minimum payment. I was hoping to not have to but....I'd just pay the minimum if I were you but, that's me.

***Just read your post. Glad that worked out for you.

Re: Balance Transfer question

DaveSignal — Wed, 16 Jan 2013 16:54:34 GMT

@Anonymous wrote:
I'm so glad you asked this question, because I was wondering the same thing and getting ready to post my own thread. I paid off my Barclays Apple card and the amount has posted to my NFCU card plus I got a letter from them stating that they have sent off the check. Barclays has yet to post that payment and my statement cut today actually. So I'll be paying the minimum due so as to not create any issues.

NFCU did state in that letter that because it could take 7-10 business days that I may have to make the minimum payment. I was hoping to not have to but....I'd just pay the minimum if I were you but, that's me.

***Just read your post. Glad that worked out for you.

Oh, I did pay the minimum, just in case. But the NFCU funds ended up paying off the account the very next day anyway. I initiated the NFCU BT on a wednesday night to two accounts. One was credited on Friday, and the other on Monday. For me, it was faster than expected.... I wouldn't have had to pay the minimum, but I am not one to chance something like that, especially when I can afford to pay the bill even if I hadn't done the BT, so I definately made sure that the minimum was at least paid to avoid late fees or adverse action.