BT trickses?

[Anonymous]

Background:

I'm trying to play the BT game to pay as little interest as I can (thus paying off debts faster).

Disc. and BoA are both offering me decent BT offers, but both are at/above 50% util, and I use them every month for purchases (Disc. especially).  My AmEx is 8% util- I BT'd to it last May, have not used it at all, and then recently got a CLI- but they won't give me any good BT offers now (19%, are they crazy?!).

So, I had 2 thoughts:  Would paying off the AmEx (I could do that this month if I wanted) get them to start sending good BT offers?

Or, more complicated, would a "reciprocal" BT work- i.e., transfer BoA's balance to AmEx at their ridiculous rate, then BT it back to BoA at 0%?  Yeah, I wouldn't get the full benefit if I keep using BoA, but it would mean $200/month @ 7.9% and 5k @ 0% vs. 5500 @ 7.9%...

Or is this all just too involved considering all my CC's should be paid off within the next 12-18 months?

Thanks!

[Anonymous]

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MsMS wrote:

Background:

I'm trying to play the BT game to pay as little interest as I can (thus paying off debts faster).

Disc. and BoA are both offering me decent BT offers, but both are at/above 50% util, and I use them every month for purchases (Disc. especially).  My AmEx is 8% util- I BT'd to it last May, have not used it at all, and then recently got a CLI- but they won't give me any good BT offers now (19%, are they crazy?!).

Would paying off the AmEx (I could do that this month if I wanted) get them to start sending good BT offers?

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I'm going to address just one issue.  I don't carry a balance on my AMEX card.  I also haven't received any spectacular balance transfer offers from AMEX since the late 1990s.  Even about 4 years ago, when my other CCCs were sending me lifetime of the balance BT offers at around 2% and 3%, AMEX would offer me BTs at 7.9%. 

Message Edited by psychic on 02-14-2008 09:26 AM

[Anonymous]

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MsMS wrote:

Background:

I'm trying to play the BT game to pay as little interest as I can (thus paying off debts faster).

Disc. and BoA are both offering me decent BT offers, but both are at/above 50% util, and I use them every month for purchases (Disc. especially).  My AmEx is 8% util- I BT'd to it last May, have not used it at all, and then recently got a CLI- but they won't give me any good BT offers now (19%, are they crazy?!).

Or, more complicated, would a "reciprocal" BT work- i.e., transfer BoA's balance to AmEx at their ridiculous rate, then BT it back to BoA at 0%?  Yeah, I wouldn't get the full benefit if I keep using BoA, but it would mean $200/month @ 7.9% and 5k @ 0% vs. 5500 @ 7.9%...

Or is this all just too involved considering all my CC's should be paid off within the next 12-18 months?

Thanks!

---

I decided to address your second question.  You have to consider fees--is there any fee for transferring the BoA balance to AMEX, and/or another fee to transfer it back to BoA?  You also have to remember that payments will most likely be applied to the lowest percentage rate balance, until that is paid in full, before any payments are applied to the 7.9% rate balance. 

[SanFranMatt]

What are your scores?  Citi has some cards with 0% on BT's for 12 months and no fee.  If you can qualify for their card with a decent limit, that may be your best option.

[Anonymous]

which citi cards? i see diamond rewards but it has a 3% fee, maybe the premeire pass but it doesn't report a cl so it will tank uti.

[SanFranMatt]

I think it was the Upromise and the Home Rebate, but I can't log into the site right now to confirm.  I signed up for both, 0% apr with no fees.

[haulingthescoreup]

This might have been covered in this thread --I got a little lost --but the absolute number one thing to always keep in mind with a BT card is that you don't want to have a single penny of any other charge on it. If you have a 0% or low BT rate, and there's a $39.95 purchase already on there at 12.99% or whatever, none of the payments that you make toward the card will be applied to that $39.95 until the BT is completely paid off. All payments are credited to the lowest interest charges first.

DH BT'd a balance from Discover to B0fA a year ago, and he lost his mind and also charged a $700 car repair or something. He has been paying whatever the interest rate is on that $700 for an entire year, because the payments only reduce the BT. I bet he's paid $80 interest on that stupid charge by now.

And as PP said, the other thing is to watch the BT fee. A 3% fee on a balance that only stays there for 3 months is like a 12% APR (roughly.) You have to leave it in there long enough for the fee to beat the other account's APR. Plus BofA usually doesn't cap its fees, so if you move a lot around, you're going to get hammered.

[Anonymous]

Hi MsMs,

This is what I has been doing past 3~4 years. 

I only had one CC through my bank, and I wanted to save the interest like you.

I applied to new CC with an offer came in the mail, 0% intro APR for 12 months on Purchases and BT / No Annual Fee / No BT Fees.  And then I made BT to my new CC.  I applied to new CC again before 0% intro APR expires to get more time to pay off and save the interest.

I kept repeat this action, because I still had balance by charged with unexpected expenses.

At this time, I could not get enough CL with same offer I always got and No BT Fee offer (3% BT Fee).  It is Discover More.  So ended-up I applied to Citi Driver's Edge with offer of 0% intro APR on BT / 3% BT Fee to make BT.  3% BT Fees ... Ouch!   But I will save a lot of interest with 0% APR is sure. 

* Since 0% APR is only on BT (Driver's Edge), I PIF the balance before I made BT to this CC.   Then I don't have to worry about collecting the interest on it.

* I have AMEX Blue and they don't give me any BT offer neither.  But they just told me I have Fixed  11.79% APR on my Blue.

* If you want to make BT to your current CCs, make sure you will get 0% APR on both Purchase & BT to use the card for your daily needs.  If it is for only BTs, PIF the balance before you make BT.

* I will not make BT back to back if there is BT Fee is involved.

* Apply to new CC if possible, try Citi Dividend Platinum or Chase Flexible.  And then transfer the balance from highest APR CC.

Good Luck!

[Anonymous]

Thanks to all!

I had hoped to just juggle balances between existing cards instead of adding more- I've already got 6 cards, a HELOC, and a car payment to manage (the other 3 are a closed Chase, Home Depot, and a CitiBusiness card for our small business).  I'll talk to the hubby- I think if we get a new card, he should be primary on it- he doesn't have any major cards of his own; he's just AU on some of mine.  I haven't checked his scores, but when we bought the truck a couple weeks ago, his Beacon score was better than mine- my  EQ score then was 662, according to ScoreWatch.  Mine has since gone up to 698.

I had forgotten to factor in fees; thank you for reminding me!

It's a pity AmEx isn't as generous with the BT offers- I have a 10k limit and $814 balance...

[Anonymous]

Your welcome.  Good thinking!  Remember, if your DH is just AU on your CCs he will not build his credit history.  He needs his own CCs to build his credit history.  It is good to have at least three CCs by his own, and stay away from store CCs and sub-prime CCs.   Research well before he apply to any CCs at this forum and choose the CCs carefully.