How common are balance transfers?

[HiLine]

I've been wondering about the point of balance transfers. Most balance transfers cost at least 3%, and if you're carrying a large balance you'd have a small chance of being approved for a large limit and low interest card. But I frankly don't know. I don't carry a balance on any of my cards, and I wonder if many of us here actually do balance transfers and find them worth the transfer fees.

[LS2982]

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@HiLine wrote:

I've been wondering about the point of balance transfers. Most balance transfers cost at least 3%, and if you're carrying a large balance you'd have a small chance of being approved for a large limit and low interest card. But I frankly don't know. I don't carry a balance on any of my cards, and I wonder if many of us here actually do balance transfers and find them worth the transfer fees.

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BT's are very common to get out of hight interest debt and pay a small fee to pay it down on 0% terms. Most of time if your declined for a good BT card a simple recon explaining your intent with the card will help in getting approval.

[ryanbush]

I did my first one ever a couple of months ago, needed a couple of months to pay off a hotel charge for 3k, and the interest would have been more than the 75$ fee.  Capital one gave me 0% for 14 months, it's only been a couple of months and I have the money to pay it off sitting in my savings account now but I would rather hold onto it for a while  since it's 0% for another 12 months.  my utilization is still below 10% so i'm not worried about it 

[youngandcreditwrthy]

Lol Im a sucker for bts! Especially with those checks they send! Also, 0% on purchases is convenient too.

[j_casteel]

NFCU BT's are awesome especially during their promo times!

[HiLine]

Thanks for your responses you guys! Once the 0% interest promotional period ends do you still use the card for balance transfers or do you put it in your sock drawer?

[Open123]

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@HiLine wrote:

Thanks for your responses you guys! Once the 0% interest promotional period ends do you still use the card for balance transfers or do you put it in your sock drawer?

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Sock drawer or product change.

On business cards, we've used 0% for the time period only making minimum payments, then pay off the balloon payment at the end.  This allows us to use a signficant portion of the capital without incurring interest on the money.  These promos costs less than using the Business LOC.

[Dustink]

My mother was in need of a balance transfer. She applied for and was approved for a Chase Slate. The limit was more than she needed and it had no transfer fee and a decent interest free period.

[HiLine]

Since it is apparent that people get balance transfer credit cards just to take advantage of the 0% APR promotional period, these cards must be hugely unprofitable for the creditors....  Or am I missing something?

[navigatethis12]

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@HiLine wrote:

Since it is apparent that people get balance transfer credit cards just to take advantage of the 0% APR promotional period, these cards must be hugely unprofitable for the creditors....  Or am I missing something?

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That's why most will charge a fee to do the balance transfer. The highest I have seen is 5%, though this fee used to be capped at like $75. I am sure that there are also people who don't pay it off before the 0% runs out and end up starting to pay interest. I have never done a balance trasnfer and reckon I won't unless it's no fee and no interest and can be deposited into a savings account.