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Balance transfers

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Jnbmom
Credit Mentor

Balance transfers

Just looking for opinions and or preferences.

 

When doing BTs do you prefer to just enter your creditors info or have the money direct deposited to you and then pay your creditor? Just curious if it makes a difference with the creditor as well seeing payment coming from another institution.

 

ThanksSmiley Happy

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UncleB
Credit Mentor

Re: Balance transfers


@Jnbmom wrote:

Just looking for opinions and or preferences.

 

When doing BTs do you prefer to just enter your creditors info or have the money direct deposited to you and then pay your creditor? Just curious if it makes a difference with the creditor as well seeing payment coming from another institution.

 

ThanksSmiley Happy


To the bank you're paying off (i.e. transferring the balance from) it makes no difference; they see it as a 'payment' either way.

 

That said, if given the choice I prefer to receive the funds via direct deposit and pay off the other card myself, since that way I can 'hand hold' things all the way through. 

 

A few times I have just provided the account number to the bank I'm transferring the balance to - and it was fine - however I was a bit in the dark until everything cleared, and it took longer than it would have had I just made the payment myself.

Message 2 of 7
Jnbmom
Credit Mentor

Re: Balance transfers

Thank you @UncleB

 

Yes I am kinda like that too lol. I did you put the account number in and amount but was tempted to do the direct deposit to me.

 

Maybe next time I willSmiley Happy

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marmaladepie
Regular Contributor

Re: Balance transfers

I hadn’t done a BT in over 15 years and I helped a friend do one for the first time last year. We only glanced over the fine print and when the BT fee hit, we were shocked. Too distracted with the 0% apr.
So since then I wanted to do a BT for myself and researched banks or CU that offer both 0% and no fee. I came across Logix CU. Applied for their CC and got approved. And guess what? They overnighted the whole CL of the card to me via certified check! 15k. While it was awesome everything was processed so fast, they immediately reported to the bureaus at 100% util! Ficos nose dived. While other accounts were very low util this one just looked so bad, a) being a brand new account and b) fully maxed out. Even without me using the whole amount for BTs, it took time to redeposit or “pay” that Acct down and for it to readjust on reports. What a pain. My tip is to know what you’re getting into and how the banks process things.
Message 4 of 7
Jnbmom
Credit Mentor

Re: Balance transfers

Thank you. 

 

My BT is through Citibank 0% through 18 months, there is a BT fee but the accounts I tranferred were very small. I am keeping my util% with Citibank below 30%. I didn't really need the BT per say but wanted to give Citi some business and hopefully I can increase my CL down the road.

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Message 5 of 7
marmaladepie
Regular Contributor

Re: Balance transfers

: ) good luck! Hopefully they’re not as uptight as Cap1 and Chase w increases.
Message 6 of 7
Jnbmom
Credit Mentor

Re: Balance transfers

Oh goodness I hope notSmiley Happy

 

Thanks

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