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Curiosity about transfer balances

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Skye12329
Valued Contributor

Curiosity about transfer balances

So totally random question, but why cant a company transfer within their company? I have a Best Buy card and a Captial One card, Cap1 says they cant balance transfer since they issue BB cards, and i was just curious why? Wouldnt it make more logical sense to do it within the same company?

BK7 - 2/21
Cap1 QS - 2k (4/21)
Mission Lane - 4k (11/21)
Venmo - 900 (11/21)
SavorOne - 2500 (12/21)
VentureOne - 2000 (7/22)
Message 1 of 6
5 REPLIES 5
09Lexie
Moderator Emerita

Re: Curiosity about transfer balances

Just like you can't deposit a check ( from the same account) into your bank account . The source of the funds must be different.
Message 2 of 6
chnceit
Valued Contributor

Re: Curiosity about transfer balances


@09Lexie wrote:
Just like you can't deposit a check ( from the same account) into your bank account . The source of the funds must be different.

+1 most banks wont let you BT to/from their own CC's


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Message 3 of 6
boomhower
Valued Contributor

Re: Curiosity about transfer balances

I'm going to disagree with the above.  The reason they don't let you transfer between their own cards is because they want you to pay interest.  Letting you transfer to another card with a lower interest or a 0% offer costs them money they would otherwise make.  They'd rather you park that money at another card than take the rist of you defaulting an not making a dime on that money.

Message 4 of 6
09Lexie
Moderator Emerita

Re: Curiosity about transfer balances

@boomhower

I guess we are in a disagreement. It's simple, they will not let you use their money to pay themself.
Message 5 of 6
FinStar
Moderator Emeritus

Re: Curiosity about transfer balances


@09Lexie wrote:
@boomhower

I guess we are in a disagreement. It's simple, they will not let you use their money to pay themself.

+1

 

Actually 09Lexie is correct.  Specific usury restrictions do not allow banks within a specific line of business to use such method to "pay itself" or extend the life cycle of a limited revolving promotional loan offer.  Essentially, if you have 3 credit card lines of credit (i.e. spread among multiple products) with the same bank or affiliate, it is counted or functions as "1" overall primary access line (ceiling) from a portfolio perspective.  You essentially "draw" from it for your everyday purchases or any other allowable transactions that are permitted by your cardholder agreement (i.e. promotional balance transfers, cash advance equivalents, etc.).

 

Now, of course it doesn't mean that folks won't use an alternate method for balance transfer checks, such as depositing into their bank account and then turn around and pay off (or essentially "transfer") the outstanding balance of the other card.  Hence why some lenders place other restrictions on balance transfer checks to ward off such abuse or practice.

Message 6 of 6
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