Questions about balance transfers

[clocktick]

I have a 0% cc balance transfer offer and am wondering...

1 - can you transfer your husband/wife's cc balance on it even if your name is not on their card and you are not a joint/authorized user? 

2- how do they differentiate the balance transfer money vs. the money you put on your card monthly?  For instance, say I transferred over $1000 and every month I charge and PIF $500, does it somehow separate the money and can you "pick" which one to pay down? 

Thank you.

[Anonymous]

1) Yes, you can pay off any card or thing you want with the balance transfer.  It works just like a check...if you are allowed to sign the check you can send it anywhere you want to pay for anything you want.  If you want to pay off your spouse's card, you have to be the one to call in.

2) New credit card law states that the balances with the highest interest rates get paid off first with the minimum going towards the lower interest rates.  Banks used to do the exact opposite to maximize their profits.  You'll see on your statement the various balances and the rates they are at.  If you have a $1000 balance transfer and $500 in spending you need to make sure you send in enough to cover the $500 plus whatever the minimum required on the balance transfer is.  Not sure how that's calculated though although I think the new law raised the minimum payment required to 5%.  You might be able to call and ask.

[Anonymous]

For question #2 I would recommend not mixing different types of charges like this. Too much room for error IMO.

When I do a BT I only use a card that already has a zero balance and then don't use that card for anything else until the BT is paid off.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[clocktick]

Thank you both.

marineveitvet - That was my plan, however, I made a charge Dec. 1 that didn't show up on my statement yet so it looks like it'll be added after the BT unforunately.  I guess I can just pay that charge off right away as soon as it hits.

[Anonymous]

---

@Anonymous wrote:

1) Yes, you can pay off any card or thing you want with the balance transfer.  It works just like a check...if you are allowed to sign the check you can send it anywhere you want to pay for anything you want.  If you want to pay off your spouse's card, you have to be the one to call in.

---

Just want to put a qualifier on this statement... Carefully read the terms of your offer.  Most banks/CUs, and YMMV of course, will not allow you to pay off any other account you have with them using the BT offer.  Sometimes this also applies to personal or auto loans held by the same bank.  I'd be careful transferring from a spouse's account as many banks are starting to employ intelligent algorithms in their risk profiling of customers and this could potentially raise a flag.

[clocktick]

I would like to move my spouse's Cap One and Chase Amazon (I'm an AU on this one) balances on my Barclays which has 0% for the next 5 months.  We are still thinking about it as we can pay it off now if we want to.

[android01]

I would also watch out as although the balance transfer APR may be 0%, there is still (in most cases) a balance transfer FEE that is usually 3-5% of the amount transfered.  You need to figure out if the interest you save from having a 0% APR outweighs the fee you'll be charged over time.  It depends entirely on how long you plan on carrying a balance. 

[Anonymous]

---

@clocktick wrote:

2- how do they differentiate the balance transfer money vs. the money you put on your card monthly?  For instance, say I transferred over $1000 and every month I charge and PIF $500, does it somehow separate the money and can you "pick" which one to pay down? 

Thank you.

---

They separate it on the statement.   They have to apply payment above the minimum payment to the highest interest rate.    Until the last 2 months before the offer expires, then the extra payment goes to the expiring deal.  

IMO, mixing charges and BT is not a good idea, too much chance of problems.