Balance Transfer Minimum Payment Question

[Anonymous]

Hi,

So I'm about to do my first ever balance transfer since Discover was kind enough to give me a 12-month 0% APR balance transfer offer and I am trying to figure out if I should pay the minimum payment before or after the transfer.

I could easily pay well over the minimum before or after the transfer, but I'd prefer not to pay twice in one month if I can help it. If I pay the minimum for Citi (where the balance currently is) before transfering to Discover, will I owe the minimum to Discover that month as well or only next month?

Thanks

[noobody]

timing is everything

Balance transfer take time, some bank may take 7-10 days to complete the transfer.

If the min due to citi bank not received by them by due date, it will put a bad mark on your citi account and late fee.

if you make the min to citi bank now (recommend), and discover payment/transfer arrive later, the amount you owe citi will be

last month balance + new purchase (if any) + residue interest (if any) - min payment you just made - balance transfer to discover

this might result a negative balance, you can ask citi to mail you a check or use it against future purchase on the citi card.  

the min and whole balance you owe discover will be shown on your next discover statement

[Anonymous]

Awesome, thanks ^_^

[Anonymous]

Be careful transferring balances on top of an existing balance. You'll want to research how they will apply your payments when you start making them and make sure there isn't some weird payment application (such as applying the payment to your 0% balance first, effectively letting the regular interest purchases just sit there) before you do the transfer.

I always pay a card off in full before using a promo . . even if it means juggling things around and needing to BT a little more after the fact . . . then sock drawer that card until the 0% is paid off.

[Anonymous]

Nah, I haven't used my Discover card since I got my Citi card. I guess they want my business again or something. Essentially all I'm doing at this point is taking the balance off of Citi's 0% purchase APR and moving it to Discover for 12 months of 0% balance transfer APR. Really all I need to pay is 3% which really isn't much sub $1000. That's totally fine with me to have it stretched out into 12 more months. I don't plan to use the Discover card until it's paid off since I don't want to get into the 0% BT APR mixed with new purchases, etc. Too much to remember.

It's not necessary. I mean, I could pay it off now....but I did just graduate school not that long ago and my utilization is very low so...heck I'll take it. Never know when you might need actual cash for something.

[hsspres]

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@Anonymous wrote:

Hi,

So I'm about to do my first ever balance transfer since Discover was kind enough to give me a 12-month 0% APR balance transfer offer and I am trying to figure out if I should pay the minimum payment before or after the transfer.

I could easily pay well over the minimum before or after the transfer, but I'd prefer not to pay twice in one month if I can help it. If I pay the minimum for Citi (where the balance currently is) before transfering to Discover, will I owe the minimum to Discover that month as well or only next month?

Thanks

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If you received the BT paper checks from Discover,  just make it out to yourself and deposit into your checking account then pay off the Citi from your checking.  I've done this in the past, plus there was no 7-10 day wait.  The BT check posted to my Discover two days after deposit and the balance on another account was paid the same day as deposit (bank didn't put a hold on the deposit).  You'll owe a minimum to Discover whenever the BT posts.  So if you want to pay the Disco minimum next month, wait until it bills then do the BT.

Edit: Yes, there probably will be residual interest from Citi for the time between the last bill and when you actually pay off the balance.  Also, you will pay Disco interest if you are carrying a balance when you do the BT.  I always make sure to have a zero balance before doing BTs - learned this one the hard way a ways back, lol.