High limit balance transfer card?

[icyhot]

Everyone knows the cards with the best rewards/store cards have high interest rates. In a perfect world we would all PIF but sometimes it just doesn't happen. Do you think it would be a good strategy to have a high limit (>$10K) BT card on deck that offers 0% to transfer balances to after say a holiday shopping spree or big vacation? Would there be any drawbacks to this? Currently my credit profile won't support such a thing but something to think about for the future

[ojefferyo]

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@icyhot wrote:
Everyone knows the cards with the best rewards/store cards have high interest rates. In a perfect world we would all PIF but sometimes it just doesn't happen. Do you think it would be a good strategy to have a high limit (>$10K) BT card on deck that offers 0% to transfer balances to after say a holiday shopping spree or big vacation? Would there be any drawbacks to this? Currently my credit profile won't support such a thing but something to think about for the future

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Of course that would be nice, it's pretty much an interest free loan. Drawbacks...depends on the lender. Some want you to pay back as soon as possible some don't seem to mind. 

[icyhot]

Wow really? You would think the whole point of a BT card is pay down balances at your pace with no penalty

[FiveOhFour]

What is a BT card please? With all the abbreviations used on this site i sometimes feel like i speak a different language

Ah, "Balance Transfer"...it clicked right as i hit the Post button

[DaveInAZ]

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@icyhot wrote:
Wow really? You would think the whole point of a BT card is pay down balances at your pace with no penalty

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I did a BT on Barclays Rewards to 90% of CL, and paid it off the month before the 0% was due to become 22.9%. Barclays responded with an auto CLI from $3500 to $5700.

What is a BT card please? With all the abbreviations used on this site i sometimes feel like i speak a different language

BT = Balance Transfer

[happypill]

Most BT cards have a limit on how long they offer 0% so you really need to apply for one around the time you need to use it.  It's a pretty good idea, but there's a reason why lenders off 0%; it's because their statistics tell them that in the long run it will make them money when people run up balances they can't pay off.  They don't stay in business giving away stuff for free.

It's a good plan if you're disciplned though.

[lg8302ch]

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@icyhot wrote:
Everyone knows the cards with the best rewards/store cards have high interest rates. In a perfect world we would all PIF but sometimes it just doesn't happen. Do you think it would be a good strategy to have a high limit (>$10K) BT card on deck that offers 0% to transfer balances to after say a holiday shopping spree or big vacation? Would there be any drawbacks to this? Currently my credit profile won't support such a thing but something to think about for the future

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There is a risk free way by saving upfront and you can even more enjoy your big vacation if you know there are no bills coming afterwards   Start planing now!

[TheGardner]

Barclaycard is great for BT they have 0% offers a lot. The cards also grow nicely as long as you use them.

[kdm31091]

In my opinion, it can be a double edged sword. Knowing you have those 0% offers available is only going to do one thing. It's going to tempt you to spend more. "Well, I can afford this because I have that nice 0% BT offer from so and so, so I'll just do that".

I'm not attacking you, but the best solution is to live within your means. Spend what you can afford to pay off. Treat your credit cards like debit and spend what you have enough money to pay for and that's it. Then you don't have to care what BT or 0% offers you have or can get. Just my opinion. The 0% offer will make you feel like you have a "safety net" that you don't really have because it's not your actual money. As much as savings accounts make such little money, IMO it's better to have some actual money aside for these things and not rely on 0% offers.

[Anonymous]

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@kdm31091 wrote:

In my opinion, it can be a double edged sword. Knowing you have those 0% offers available is only going to do one thing. It's going to tempt you to spend more. "Well, I can afford this because I have that nice 0% BT offer from so and so, so I'll just do that".

I'm not attacking you, but the best solution is to live within your means. Spend what you can afford to pay off. Treat your credit cards like debit and spend what you have enough money to pay for and that's it. Then you don't have to care what BT or 0% offers you have or can get. Just my opinion. The 0% offer will make you feel like you have a "safety net" that you don't really have because it's not your actual money. As much as savings accounts make such little money, IMO it's better to have some actual money aside for these things and not rely on 0% offers.

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Yes this is how it should be handled, however it is nice to have such a card for unplanned or emergency situations. Medical emergencies, death in the family, etc. may cause you to need to carry a balance even if you never have before. It really doesn't hurt to have it just in case, as long as you are responsible enough to not use it unless needed.