cancel
Showing results for 
Search instead for 
Did you mean: 

Balance Transfer Question

Highlighted
Regular Contributor

Balance Transfer Question

I am sure this has been asked a million times, but I need to know asap. 

 

My parents are looking to use a zero % 12-month balance transfer offer from Chase for some home repairs.  It has a 4% fee, and I, being a great son, was thinking it makes sense to put the charge on my 2% cash back card as a way to help them reduce the cost.  They have no non-Chase cards except for AMEX and the provider doesn't accept AMEX.

 

Is there any downside to paying an issuer off from a balance transfer?  In other words, will Bank A be bothered by the fact I am paying off the balance using a BT from Bank B?  We will probably do this twice before 1/31.

 

Not worried about utilization for my card.

Message 1 of 4
3 REPLIES 3
Highlighted
Epic Contributor

Re: Balance Transfer Question


@NKB246 wrote:

I am sure this has been asked a million times, but I need to know asap. 

 

My parents are looking to use a zero % 12-month balance transfer offer from Chase for some home repairs.  It has a 4% fee, and I, being a great son, was thinking it makes sense to put the charge on my 2% cash back card as a way to help them reduce the cost.  They have no non-Chase cards except for AMEX and the provider doesn't accept AMEX.

 

Is there any downside to paying an issuer off from a balance transfer?  In other words, will Bank A be bothered by the fact I am paying off the balance using a BT from Bank B?  We will probably do this twice before 1/31.

 

Not worried about utilization for my card.


I think this is probablt quite common, and I don't see an issue. Personally I would try to keep you utilization as low as possible.

and anything over 89% is considered maxed to the limit. I also suggest making more than the minumum payments

on cards with BT's.  .. All JMHO

popcorn eating emoticon.gif

Message 2 of 4
Highlighted
Moderator

Re: Balance Transfer Question

Zero issues whatsoever.  It may be worth your parents calling Chase to see if there might be any 0% promotional purchase offers available for them.  May be a long shot but it saves 2% of the 4% fee after taking into account your 2% cash back, and depending on the Chase card there might be rewards on top of it earned for their purchase.  Alternately, if they're up for it, a new application for a card with a 0% introductory offer that also earns rewards would also cost less than zero for them to carry.

Message 3 of 4
Highlighted
Regular Contributor

Re: Balance Transfer Question

Thanks!

 

I thought about it, and they can transfer the $ from the BT into their checking account, transfer the funds to me, and I can pay from my checking account, avoiding my concern.

 

None of the accounts will go into dangerous utilization. 

Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.