topic Re: Questionable BT Offer From Chase ? in Credit Cards

Questionable BT Offer From Chase ?

flapjack — Fri, 10 May 2013 18:41:39 GMT

I just got an email from Chase offering a 0% BT. I wasn't considering it but this language caught my eye:

Once you take advantage of this balance transfer offer, you will have a new balance on your account. This means interest will be charged on new purchases you make with your credit card, unless you pay the entire balance (including any transferred balances) in full each month.

I take that to mean that if I transfer say $1000 and then charge $1, I'll pay interest on that dollar until $1001 is paid off. I thought the credit card act required higher interest balances to paid off first. Any thoughts ?

Re: Questionable BT Offer From Chase ?

Anonymous — Fri, 10 May 2013 18:46:05 GMT

You would pay interest on any NEW purchases on that card. I tend to SD my BT cards alone for the duration of the promo period as I pay it off.

Re: Questionable BT Offer From Chase ?

09Lexie — Fri, 10 May 2013 18:47:39 GMT

Exactly!

Re: Questionable BT Offer From Chase ?

slickshoes182 — Sat, 11 May 2013 03:33:14 GMT

The way these show up on statements is "<High number> APR, Promo 0% APR Until <Some date>." Your normal APR will be lower than the <High number> APR. They say they are not violating the Credit Card Act since they are paying off the highest longterm APR (even though the balance is temporarily at 0%).

Re: Questionable BT Offer From Chase ?

leoment — Sat, 11 May 2013 03:43:56 GMT

Yep - I learned that the hard way (granted it was for a small purchase, but still). Now anytime I do a balance transfer on a card, it is sock drawered until I PIF. I want to use my Freedom card now but I BT onto it :\

Re: Questionable BT Offer From Chase ?

boomhower — Sat, 11 May 2013 03:48:13 GMT

This isn't unique to Chase, very common among lenders. If you have a BT promo, don't use the card. My Freedom card is currently froze due to a BT offer on it.

Re: Questionable BT Offer From Chase ?

FinStar — Sat, 11 May 2013 03:56:01 GMT

@boomhower wrote:
This isn't unique to Chase, very common among lenders. If you have a BT promo, don't use the card. My Freedom card is currently froze due to a BT offer on it.

They are in compliance with the Card Act guidance and not violating any rules. So, if you are unfamiliar with the promotional language disclosure, or would not like to get hit with an unexpected "surprise" then just use the card for the BT promo exclusively until paid off.

Re: Questionable BT Offer From Chase ?

youngandcreditwrthy — Sat, 11 May 2013 15:24:32 GMT

This is why it's important to consider a BT card that has 0% on purchases AND bts.

My freedom has 15 mos 0% on bts AND purchases, so I bt'ed some to it and still use it for whatever categories lol.

Re: Questionable BT Offer From Chase ?

LS2982 — Sat, 11 May 2013 15:26:25 GMT

@flapjack wrote:
I just got an email from Chase offering a 0% BT. I wasn't considering it but this language caught my eye:

Once you take advantage of this balance transfer offer, you will have a new balance on your account. This means interest will be charged on new purchases you make with your credit card, unless you pay the entire balance (including any transferred balances) in full each month.

I take that to mean that if I transfer say $1000 and then charge $1, I'll pay interest on that dollar until $1001 is paid off. I thought the credit card act required higher interest balances to paid off first. Any thoughts ?

Best to take the offer and S the card until the BT is PIF if you really need to do the BT.

Re: Questionable BT Offer From Chase ?

Anonymous — Sat, 11 May 2013 21:31:13 GMT

Thankfully NFCU does not do this. I BTed some cards and still use the card and only pay interest on regular purchases. Once I paid off those regular purchases (gas and dinner. some groceries) now I get no interest.

I like that not all cards/banks are greedy.