cancel
Showing results for 
Search instead for 
Did you mean: 

Avoiding balance transfer fees

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Frequent Contributor

Re: Avoiding balance transfer fees

"Most people only do a balance transfer if there is a no or very low APR intro period involved."

Agreed - but with this technique, anyone can benefit from it even if the card their transferring to only barely has a lower APR. Or even if all you want to do is shuffle balances around to keep your utilizations on certain cards lower.

 

"If you want to avoid BT fees, there are cards that dont charge them."

True - if you have good enough credit to get them.

    Total CL: $21,100
Fico 8 Scores:
12/2018:
03/2019:
06/2019:
09/2019:
Goals:   550 by 12/2018 600 by 3/2019   650 by 6/2019   700 by 1/2020   750 by 1/2021 800+ by 1/2022
8 derog. (all settled 1/2019)     |     Inquiries: 10, 9, 6     |     AoOA: 10.0yr     |     AAoA: 5.2yr     |     AoYA: 0.4yr
Message 11 of 20
Moderator

Re: Avoiding balance transfer fees

I think I get it... now. @Saeren and @Remedios, the clarity has helped, but after reading all of that again, I'm having Friday head 'spinnies'.
Message 12 of 20
Super Contributor

Re: Avoiding balance transfer fees

I mean you’re still being forced to make payments the size of the debt you want to "transfer" so it’s not really the same thing, it’s just a vicious cycle of debt that actually wouldn’t be too hard to have it blow up in your face. I used to do this in my 20s and before I knew it, my cards were unmanageable. A BT can be a very responsible way to pay down debt if you stop using your cards when you take one but this method is an easy way to let your debt spin out of control and cost a lot more than the 3-5% fee. 


Scores 1/2019:
Scores 9/2019:

Hover over my cards to see my limits!
Goal cards: Does it look like I really need any more cards? My goal is to garden until 2/2020.
Message 13 of 20
Moderator

Re: Avoiding balance transfer fees


@FinStar wrote:
I think I get it... now. @Saeren and @Remedios, the clarity has helped, but after reading all of that again, I'm having Friday head 'spinnies'.

+1

 

It took me reading over it a second time to understand, but I've actually done this before.

 

Assuming you have a 0% offer on purchases it can work if your usual spend is similar to the amount you want to transfer anyway, but it will be easy for the casual credit card user to get lost in the details.

 

This is a good example of where the explanation for how to do something is more complicated than the actual 'something' itself. Smiley Happy

Message 14 of 20
Established Contributor

Re: Avoiding balance transfer fees

But.... I feel like if there is a charge I can put on a cc, I will (to get those rewards points!) So if there's anything I'm paying out of my checking, it's because the fee to pay it (like rent) is greater than the % back I'll get in rewards. So essentially, if I'm putting that charge on a different card to "transfer" a balance, I'll be paying a fee anyway.

I just think a lot of MF peeps don't have regular charges coming out of their checking unless there's a reason for it (ie high cc fees)
Message 15 of 20
Regular Contributor

Re: Avoiding balance transfer fees

I got this 1st time reading! Smiley LOL

                 I've done this a few times.....

            Also have moved statement credits (Subs)  to another FI using this technique (I'm looking at you Amex)!

Message 16 of 20
Contributor

Re: Avoiding balance transfer fees

What about a transfer app like Plastiq? Didnt someone pay for their Tesla that way, AND get his points? 😲
Starting Score: 630
Current Score: 768/798/803
Goal Score: 820+


Take the myFICO Fitness Challenge

Began in Jan 2017.
As of March 2018, just bought a new solar home!

Planning for: Chase Saphire Preferred
Am Ex Blue Everyday
Marriott Bonvoy or Visa Sig and Hyatt Visa Card (DONE! SPG Business, baby!!!)
A Viaso card (all for Japanese travel)
And to open a High Yield Savings and CD investment, and maybe look into ETFs. (DONE! ALL!)


Citi Rewards+ - $14000, Citi DC - $11000, Nordstrom VS - $5000, Discover IT - $14700, CareCredit - $15000, Cap One Venture - $6000, Amazon - $3800, Wayfair - $4900, Simply Be - $1200, Lane Bryant Platinum - $1900, Cap One Quicksilver (co-sign/au) - $1250, Victoria Secret - $750, Paypal MC - $900 ☹
($79750 in credit. So Far ...) Updated 6/5/2019
Message 17 of 20
Established Contributor

Re: Avoiding balance transfer fees

Funny thing... I've never used a balance transfer check to tranfer a balance between cards. Barclaycard US which for me was Sallie Mae, then something else, then something else... used to send me balance transfer checks for 1% transfer fee and 14 months term no interest. Back when the stock market was plush and difficult to pick a loser (2016-2017) , I borrowed $10K at a cost of $100 each a couple times.  

 

Now this could have backfired, but I ended up $18K ahead when the account settled, so almost doubled my interest free investments. I considered it a hobby. Today... it's too scary. Besides, those 1% offers evaporated.  

Message 18 of 20
Contributor

Re: Avoiding balance transfer fees

Citi used to send me tons of those checks, I think Discover did, too.
If you deposit them into your own accounts (checking, savings, stock, etc, ...) is the fee the same for each?
Or is it only the full charge for a check written to another card?
Starting Score: 630
Current Score: 768/798/803
Goal Score: 820+


Take the myFICO Fitness Challenge

Began in Jan 2017.
As of March 2018, just bought a new solar home!

Planning for: Chase Saphire Preferred
Am Ex Blue Everyday
Marriott Bonvoy or Visa Sig and Hyatt Visa Card (DONE! SPG Business, baby!!!)
A Viaso card (all for Japanese travel)
And to open a High Yield Savings and CD investment, and maybe look into ETFs. (DONE! ALL!)


Citi Rewards+ - $14000, Citi DC - $11000, Nordstrom VS - $5000, Discover IT - $14700, CareCredit - $15000, Cap One Venture - $6000, Amazon - $3800, Wayfair - $4900, Simply Be - $1200, Lane Bryant Platinum - $1900, Cap One Quicksilver (co-sign/au) - $1250, Victoria Secret - $750, Paypal MC - $900 ☹
($79750 in credit. So Far ...) Updated 6/5/2019
Message 19 of 20
Established Contributor

Re: Avoiding balance transfer fees


@TheFraulein wrote:
Citi used to send me tons of those checks, I think Discover did, too.
If you deposit them into your own accounts (checking, savings, stock, etc, ...) is the fee the same for each?
Or is it only the full charge for a check written to another card?

You make the checks payable to yourself and deposited by you. The terms are whatever is written for that check. Sometimes there will be different options for different checks on the same offer sheet so read the small print. 

Message 20 of 20
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.