Help on BT

[amp0804]

Welcome

[Anonymous]

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@sgs10 wrote:

Thanks I just checked with CSR about the direct deposit and he confirmed that its a BT and not CA

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So let me understand this, you can get a balance transfer through direct deposit into your bank account and not have it tied to any of the fees of a cash advance?

I didn't know this until now, quite useful.

[clocktick]

I recently did a balance transfer from a card to a Citi card.  It was quick and easy.  I called up Citi (but also see that I could've done it online) and told them the card and amount I wanted to transfer and then in under a week, it was done.

I also just got blank checks from Barclays.  It said you could fill them out and give them to people as checks or write a check to yourself and deposit it in your bank.  I haven't read the fine print but it seems simple enough.

[sgs10]

Yep but only in CITI

[LisaPA]

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@Anonymous wrote:

So let me understand this, you can get a balance transfer through direct deposit into your bank account and not have it tied to any of the fees of a cash advance?

I didn't know this until now, quite useful.

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Yup. It's known as credit card arbitrage. It's basically a short-term interest-free loan from the credit card company. It can be used to pay off/down a higher interest loan.

You have to make the minimum monthly payments and possibly pay a BT fee, and by all means, pay it back on time! Also, it's important to do this on a card with no other purchases, because payments will go to the lowest interest items first. I recently did this with my Chase card and the CSR was quite detailed about how to do it.

ETA: Meh, crappy block quote.

[Anonymous]

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@LisaPA wrote:

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@Anonymous wrote:

So let me understand this, you can get a balance transfer through direct deposit into your bank account and not have it tied to any of the fees of a cash advance?

I didn't know this until now, quite useful.

---

Yup. It's known as credit card arbitrage. It's basically a short-term interest-free loan from the credit card company. It can be used to pay off/down a higher interest loan.

You have to make the minimum monthly payments and possibly pay a BT fee, and by all means, pay it back on time! Also, it's important to do this on a card with no other purchases, because payments will go to the lowest interest items first. I recently did this with my Chase card and the CSR was quite detailed about how to do it.

ETA: Meh, crappy block quote.

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This is no longer true.  Feel free to do a BT on whichever card offers you the best offer, and your payments above the minimum will not go to the lower interest rate balance first like they used to.

One positive thing to come out of the CARD act.

[LisaPA]

Maybe my CSR at Chase was wrong, but he told me that just last month. I'm not inclined to find out which of us is wrong at this point. My BT doesn't end until May of 2012!