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 SirTripAlot
Semper Fidelis
Registered: 01/11/05
Posts: 1,814
Loc: God Bless America
Last seen: 1 hour, 24 minutes
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 Balance Transfers....the real story
#8266723 - 04/10/08 09:49 PM (4 months, 23 days ago) |
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Having worked for a major bank in the area of credit cards, I would like to pass the below information to the wonderful community here. Having processed countless balance transfers, there are several things one can do, to actually save money. However most consumers are oblivious on how to accomplish this:
1. The first thing to realize, is that when you submit a payment into any financial institution, 100% of your payment is ALWAYS applied to the LOWEST APR on your credit card.
2. For this reason, whenever you do a balance transfer, make sure it is done to a card with a zero balance. (the best way to do this, is to have a separate account or card for this reason)
3. This way when you submit your payment, 100% of the payment will be assessed on the transfered balance,while no other interest is incurring at a higher rate (typically your purchase APR).
Example:
Say you have a credit card with $3,000 on it. Say you transfer the balance to another card at a 4.99 fixed for the life of the loan. If you have ANY purchases or cash advances existing on the account, YOU CANNOT PAY OFF those balances until you pay off your transfer in full. While you are paying off the transfer, your purchases are incurring interest!!! It defeats the purpose of the balance transfer itself!!!
Bottom line:
Balance transfers save you money IF you do them to credit cards with no balance, and do not put ANY purchases or cash advances on them.
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I will not fear
Fear is the mindkiller,
Fear is the little death
That brings total Oblivion
I will permit my fear to pass
Over me and through me
And where it has gone
I will turn the inner eye
Nothing will be there
Only I will remain
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 tak
geo's henchman
Registered: 11/20/00
Posts: 2,591
Loc: nowhereland
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Re: Balance Transfers....the real story [Re: SirTripAlot]
#8271418 - 04/11/08 08:48 PM (4 months, 22 days ago) |
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i got incredibly lucky with a 0% balance xfer card that had limits to hold my other 3 cards. without this id never be able to crawl out of debt
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The DJ's took pills to stay awake and play for seven days.
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SirTripAlot
Semper Fidelis
Registered: 01/11/05
Posts: 1,814
Loc: God Bless America
Last seen: 1 hour, 24 minutes
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Re: Balance Transfers....the real story [Re: tak]
#8271634 - 04/11/08 09:35 PM (4 months, 22 days ago) |
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Good to hear....I talk to people daily in this credit crunch.....some people are really hurting.
What did they charge you for the transfers? How long?
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I will not fear
Fear is the mindkiller,
Fear is the little death
That brings total Oblivion
I will permit my fear to pass
Over me and through me
And where it has gone
I will turn the inner eye
Nothing will be there
Only I will remain
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tak
geo's henchman
Registered: 11/20/00
Posts: 2,591
Loc: nowhereland
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Re: Balance Transfers....the real story [Re: SirTripAlot]
#8273130 - 04/12/08 08:09 AM (4 months, 22 days ago) |
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I had to pay a certain % up to $50. Xfered about 8,000 into 1 card and had it payed off before the 18 month 0% ended.
The 3 other cards I payed off were at 32% from missing payments, etc. I was paying out the ass each month and going no where. I learned the hard way, but im glad that its all done with.
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The DJ's took pills to stay awake and play for seven days.
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rawtoxic
Registered: 10/06/02
Posts: 2,044
Loc: smokey mountains
Last seen: 12 days, 22 hours
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Re: Balance Transfers....the real story [Re: tak]
#8308444 - 04/20/08 05:53 PM (4 months, 14 days ago) |
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Another strategy I have found interesting is what my current girlfriend does she has great credit and gets 0% balance xfers for 2 years or whatever longest term she just uses the money she says if banks are going to give her $10k interest free loan she is going to use it. I am thinking about doing something similar I am watching my mail for offers.
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Terillius
Renaissance Man
Registered: 07/21/06
Posts: 536
Last seen: 10 minutes, 4 seconds
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Re: Balance Transfers....the real story [Re: rawtoxic]
#8353394 - 05/02/08 11:36 AM (4 months, 2 days ago) |
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Quote:
rawtoxic said:
Another strategy I have found interesting is what my current girlfriend does she has great credit and gets 0% balance xfers for 2 years or whatever longest term she just uses the money she says if banks are going to give her $10k interest free loan she is going to use it. I am thinking about doing something similar I am watching my mail for offers.
I've been doing the same thing. Put everything, I mean everything, on a card with 0% APR and then collect the rewards checks. Just don't miss a payment or the APR will spike and you will be screwed. It's best to pay the whole thing every month.
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"The Prohibitionist must always be a person of no moral character;
for he cannot even conceive of the possibility of a man capable
of resisting temptation." -Aleister Crowley
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