Credit card checks

[PandiferBear]

I have never used one of these, but I was looking at my spreadsheets and it looks like it could really make life easier.  I was thinking about using one of DH's checks that came when he got his Sallie Mae and put all of our credit card debt to that card.  Most of our balances have no interest XX/XX but a couple do not.  And none of them have no interest for as long as the check offers.  It would be nice to just have one bill to pay.  There is a 3% charge, but our CC debt is roughly $2900, so it will not be that much.  And I would really like the convenience.  It would bring my utilization from 7.8% to 0% (so I would just let my one account I use report to keep optimal) and his would change from 7.81% to about 12%, and that one account we are transferring to would be at around 34%, but that would come down soon, and it would be better than his highest utilization account currently.  Could someone tell me about their experience (good or bad) with these, and let me know if there are any holes in my plan that I am not seeing?  What am I overlooking?  It kind of seems too good to be true, even though I may end up paying a few dollars in the end.  Obviously, we will be PIF any new charges.  Thanks in advance for your wisdom. 

[juggalo9er]

write it to yourself and throw it in the bank ....then pay the cards off. i have used them a few times and have never had a problem

[PandiferBear]

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@juggalo9er wrote:

write it to yourself and throw it in the bank ....then pay the cards off. i have used them a few times and have never had a problem

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Thanks for your input.  Good to know.  I was hoping that was the case, but I had no experience, and I knew someone here would.  Much appreciated!

[Brax]

The credit card checks work best if you will NOT use the card any further for regular purchases.

Most of these "convenience" checks have a gotchya where even if you PIF new purchases (but not the convenience check), you will still get charged interest as they somehow can subvert the CARD act with these and apply payments to lowest APR (convenience check) first instead of higher APR (purchases).

These can be very useful though. I've gotten auto CLIs from WF after using them, so banks MIGHT be more generous if they see you as being more profitable.

[PandiferBear]

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@Brax wrote:

The credit card checks work best if you will NOT use the card any further for regular purchases.

Most of these "convenience" checks have a gotchya where even if you PIF new purchases (but not the convenience check), you will still get charged interest as they somehow can subvert the CARD act with these and apply payments to lowest APR (convenience check) first instead of higher APR (purchases).

These can be very useful though. I've gotten auto CLIs from WF after using them, so banks MIGHT be more generous if they see you as being more profitable.

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Gotcha.  Thanks for the info.  We will definitely be holding off on using the card until that promo balance is paid!

[Jlu]

I sent a secure message to Barclays (who also owns Sallie Mae) asking for a lower BT fee and told them I was offered 2% by their competition. Less than a week later I was offered 0% for 18 months instead of 12 months and with a 1% fee instead of a 3% fee. Now this offer is a permanent staple on my account and the only reason I keep the account open.

It is definitely worth a shot if only to save you the $60 now, but perhaps offer a convenient solution to a future problem.

[PandiferBear]

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@Jlu wrote:

I sent a secure message to Barclays (who also owns Sallie Mae) asking for a lower BT fee and told them I was offered 2% by their competition. Less than a week later I was offered 0% for 18 months instead of 12 months and with a 1% fee instead of a 3% fee. Now this offer is a permanent staple on my account and the only reason I keep the account open.

It is definitely worth a shot if only to save you the $60 now, but perhaps offer a convenient solution to a future problem.

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What?!?!?! Wow. It would not have occurred to me to ask for a lower rate. Thanks for the insight!  I will give that a shot! It definitely does not hurt to ask, and hopefully I will get a lower rate. If not, nothing lost. Thanks again. This place is awesome.

[Jlu]

When it comes to CC's everything is negotiable Also I may have called in instead of SM'd because I don't think they handle BT questions via SM. Anyways like you said the worst they can do is say no.

[PandiferBear]

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@Jlu wrote:

When it comes to CC's everything is negotiable Also I may have called in instead of SM'd because I don't think they handle BT questions via SM. Anyways like you said the worst they can do is say no.

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Nice!!  I just sent a secure message. There was a "balance transfer" option in the pull down menu, so we shall see. I think what surprised me the most is that after I submitted it, they said I would have a response within 6 hours.  WHAT?  THat is crazy amazing if it happens!

[takeshi74]

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@PandiferBear wrote:

What am I overlooking? 

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No idea.  BT offers can and do vary so I can't tell you what the terms are for that card.  Make sure you read and understand all the terms of the BT offer.  Mentioned above but also make sure you undertand how payments are allocated after the BT is complete.

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@PandiferBear wrote:

Could someone tell me about their experience (good or bad) with these

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They're balance transfers and the "good" and "bad" are going to be in the details of the terms.

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@PandiferBear wrote:

that one account we are transferring to would be at around 34%, but that would come down soon, and it would be better than his highest utilization account currently.

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How long is "soon"?  How long would be over 30%?  How high is the account with higher utilization and how long would it be over 30%?  Saying it's way better than an account with even higher utilization isn't a positive statement.  Both individual and overall utilization matter.