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Can I BT a large amount for 7-10 days? Cap One

Established Contributor

Re: Can I BT a large amount for 7-10 days? Cap One

What about the 3 percent transr fee that Capital one charges?

Message 11 of 16
Valued Contributor

Re: Can I BT a large amount for 7-10 days? Cap One

If you are paying a BT fee, your effective interest rate is through the roof for a 7-10 day loan. Getting 3% for lending money 7-10 days yields an annual rate near 100%. Of course it's not actually 100%, but the short period has an annual rate equivalent to 100%.

If the BT has no BT fee, then its fine.

Some don't realize BT fees are like prepaid interest. If your BT is for 1 year at 0% with a fee of 3%, and you pay it off, you paid them 3% of the initial balance in interest.

Scores, HPs/24 mos. (updated 01/13/21):
Experian FICO Score 8 = 828, 1/24
Experian FICO Score 9 = 813, 1/24
TransUnion = 811, 1/24
Equifax = 813, 0/24

Total 2020 rewards, incl. offers/deals = \$1,388.00

Total CL: \$247,000

Cards (hover over for CL | interest rate | Date Opened):
Message 12 of 16
Mega Contributor

Re: Can I BT a large amount for 7-10 days? Cap One

@firefox100 wrote:

What about the 3 percent transr fee that Capital one charges?

There is no fee for a full APR BT which is why people think to use their Capital One cards for this purpose.

Seems to me if Capital One doesn't want people to move a balance there and transfer it somewhere else, they should put in a fee for doing the transfer.

Message 13 of 16
Established Contributor

Re: Can I BT a large amount for 7-10 days? Cap One

@Saeren wrote:

@firefox100 wrote:

What about the 3 percent transr fee that Capital one charges?

There is no fee for a full APR BT which is why people think to use their Capital One cards for this purpose.

Seems to me if Capital One doesn't want people to move a balance there and transfer it somewhere else, they should put in a fee for doing the transfer.

Right

ive did this a few times with Cap 1 with no issues. Granted the amounts were only like 2k so maybe that played a role.

Amex Green NPSL, Amex Hilton Surpass 5k, Amex Marriott Bonvoy 1k, AMEX BBP 1k, AMEX Biz Cash 6k, BOA Cash Rewards 5k, BOA Better Balance Rewards 2k, Care Credit 15k, Chase Amazon Visa 19.825k, Discover 11.8k, Discover 12.5k, Nordstrom Store 4.5k , Fidelity Visa 10k, Cap 1 QS 15k, Cap 1 Savor 10.5k, Citi Rewards+ 4.4k, Citi DC 8k, Citi Advantage Platinum 5.5k, US Cash+ 3.5k, Altitude Reserve 12.5k, Paypal Mastercard 4k, Apple Card 6.5k, Wells Fargo Cash Wise 5k, BOA Premium Rewards 8k, Citi AA Biz 1.5k, Flexperks Biz 3k
Message 14 of 16
Established Contributor

eRe: Can I BT a large amount for 7-10 days? Cap One

Is this correct if you do a balance transfer from Capital one account like a Quick silver to another creditcard that is not with Cap one at the regular intrest rate and pay balance off before account closes ther will be no intrest charge. for example Bt \$ 5000 to Boa and pay Cap off with in 10 days ther will be finance charge.

Message 15 of 16
Super Contributor

Re: Can I BT a large amount for 7-10 days? Cap One

@wwalter2718 wrote:

OK, here's one for which I have an answer that may actually be useful!

First, others who have assumed that interest would be charged immediately are probably wrong.  Unless things have changed just recently, CapOne cards will actually do a BT as a pseudo-purchase -- they don't incur interest until the next statement cuts and the balance hasn't been paid off  by the due date.  Of course, if there's a revolving balance, this doesn't apply.

I took advantage of this odd feature a couple years ago.  I had a 0% BT expiring on a Barclay card and a BT offer for just 1% BT fee on the same card.  So I BTed a few thousand to CapOne, then as soon as it arrived there, I BTed it back to Barclay for another year at 0%.  I had multiple BT balances on the Barclay card and, as each came due, I paid it off (pmts were applied to earliest-expiring offer, thankfully) and then sent it back.  I did this probably half a dozen times, for a total amount of maybe \$28k.  It worked every time.  Never paid CapOne anything.  Life was beautiful.

Until it all went bad.  CapOne decided that they no longer wanted to maintain a business relationship with me.  They shut down both cards I had (and I'm pretty sure I never used the smaller one for these BTs) as well as a CapOne 360 account I had tried to open for a bonus.

Now, my Walmart card just transitioned from Synchrony to CapOne.  I had a zero balance and essentially never used that 10K of credit line, but as soon as it showed up at CapOne it went pretty much immediately to "restricted" status and I got a credit-monitoring alert that it had closed (in addition the Synch acct, so 2 notifications).  It still shows as open/current/never late, etc. but I believe it really is gone.  That with a true FICO of 750 and up on all 3, perfect payment history, no derogatories, etc.  So, I'm clearly on CapOne's black list.

So, if you do it, do it just once.  Or don't do it.

Dio

Great post. I had exactly the same experience. Thought those fee-free, interest-free balance transfers were great, until Capital One without warning closed all my accounts, including my checking account which I'd had for 15 or more years, going back to ING Bank.

They've never admitted that that was why they did it, and they never gave me a chance to just stop doing them.

Their "Executive Office" said it was a "back office thing", and the back office never tells them why it shut down an account.

Total revolving limits 653000 (575000 reporting) FICO 8: EQ 716 TU 747 EX 715

Message 16 of 16
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