Latest responses to “How to Avoid A Major 0% Balance Transfer Credit Card Mistake” Copyright 2012, MoneyBlueBook.com 417850 2010-07-11T00:50:28-07:00 Grego Miko, you should keep the credit card open, even if it is high interest. Credit card accounts that you have held for a long time will increase your credit score, there really is no reason to close them. Once, I thought my interest rate was too high on my citi card so I called them and told them I wanted to close the account because I had better cards in my wallet with lower rates. Since they really wanted to keep my business they offered me a 0% APR for a year or so. So that is an option you might try. Keep the account open - you never know when you might need the money. 417840 2010-06-21T17:51:23-07:00 Miko I am looking to transfer a balance on a high interest credit card(CaptilalOne) to a low interest credit card (Citibank). My question is; should i close the high interest credit card after transferring the balance? or should i keep it open in order to build credit? I have a 5 year history with Capital One. Any advice is appreciated. 417830 2010-05-10T15:15:01-07:00 Sunil Thanks for the great article Raymond. I received citibank balance transfer checks in the mail. Instead of depositing the checks in my checking account, I wrote a check to a friend as I owe him some money. I guess that would still be treated as a balance transfer right? My friend deposited the check in his bank account today. It's still in process. I talked to Citi customer service and they mentioned if the bank takes the checks that should be fine. 417820 2009-12-09T10:24:32-08:00 lesley Hi Raymond, I just applied online for the virgin offer of 0% interest for 16mths on balance transfers and intend to use it immediately for paying off my debt. I am confused as after completion it says congratulations you are accepted and you now have ����2000 credit. Does this mean i now "owe them my previous debt from my last card supplier but I also have ����2000, credit on top? also what about my other card that i transferred from, i am assuming i owe them nothing any more , will i still have my credit that i had originally available to spend ? (not that i intend to.) 417810 2009-09-09T12:15:53-07:00 Raymond Well Russ, I don't necessarily think balance transfer cards will completely die out 100%, as I truly believe credit card issuers will ultimately find a way to adapt and restructure their 0% APR offers to allow consumers to continue taking advantage of such features while also allowing themselves the ability to profit in some way. But the biggest thing that the new credit card rules will do is severely restrict the credit card issuers' ability to direct card member payments towards lower interest rate balances first before applying them towards higher rate balances. Their ability to do this was one of the reasons why balance transfer cards were so profitable for the issuers and so widely promoted during the heyday. Not being able to restructure credit card payments in this way will severely limit the issuers' incentive to offer balance transfers in the future. 417780 2009-09-09T12:08:56-07:00 Russ What are the impacts of the credit card laws that go into effect in February 2010. There are many analysts predicting that we are nearing the end of zero percent introductory offers because of the new laws signed last august that dont fully go into effect until february. From what i gathered the laws will require that new accounts cannot have a promotional APR raised within the first years. Since banks offering zero pecent intro rates were counting on some people defaulting and taking a higher interest rate, does this mean the end of the zero pecent balance transfer game? 417770 2009-08-04T23:05:45-07:00 OLITA I AM NEW TO ALL THESE TRANSFERS AND I NEED SOMEONE'S HELP! I WANT TO TRANSFER MY BALANCE FROM ONE CARD TO ANOTHER BUT I HAVE A FORECLOSURE ON MY RECORD, CAN I STILL APPLY FOR THE CARD WITH 0% APR AND TRANSFER BALANCE OF $1000 TO IT. MY CURRENT PERCENT ON BANK OF AMERICA CREDIT CARD IS 27% !!! I PAY ALMOST THE SAME AMOUNT ON INTEREST AS ON PRINCIPAL..THEY RAISED BECAUSE OF COUPLE LATE PAYMENTS AND COULDNT DROP IT DOWN BECAUSE OF FORECLOSURE! HOW UNFARE IT IS, I AM A GOOD CUSTOMER, JUST HAPPENED TO BE LATE PAYMENTS DUE TO MY MOVING, SO NOW IAM SUFFERING WITH HIGH % RATE, CAN ANYONE SUGGEST ME WHAT TO DO AND IF IT MAKES SENCE TO APPLY TO 0% APR CREDIT CARD WITH MY CREDIT HISTORY.... 417670 2009-06-28T03:29:13-07:00 Cheng i just wanted to know if you believed in the ATM card with zero balance since one year at the same time it was already expired and still can withdraw money from ATM machine. the type of account is SAVING not CURRENT please help me to know the rights of the card owner and what is the risk. thank you and have a nice day.. 417740 2009-06-27T19:24:04-07:00 crossroads I have an update. We called Chase today and I really expected to hear that there is nothing they could do for our situation. But to my surprise, the service rep transfered us to a dept that works with customers who are eligible but it does require that you close down your account. They offered to give us a fixed interest rate of 6% with payments over 5 yrs. Our payment will be $438 every mo. This sounds great and a far cry from the $1100 it would have been. They are not a third party and are called Proactive. They said that because we have such a good credit history they could help us. I asked if it would hurt our credit report to do this and she said no because we would be voluntarily closing the account and it would still show up as current payments with Chase. So please call Chase to see if they can work with you first before you do anything else, especially if you have good credit and made payments on time with Chase. The number Chase transfered me to is 1 800 404 6220. But call the number on your bill first and find out if you are eligible. Hope this helps some people. Again, we are still thinking about it but we are pretty sure we are going for it since going to the CCCS (credit counseling) might involve them keeping your credit cards except one for emergency and would show up on your credit report as a third party making the payments for you. Otherwise, than that, they look to be a great co. to work with and a good choice if you go that route. They are recommended by Suze Orman, the financial guru. 417800 2009-06-25T22:19:29-07:00 Dean I'd call them. Tell them what you can afford. Tell them you want to pay them in full but you simply cannot afford their new minimum. If they don't work something out with you then you could talk with an attorney or credit counselor. Or, just say SCREW THEM and never pay them a penny. I doubt they will sue you. And, even if they do - so be it. There are no debtor's prisons in America any more. So, 'it will ruin my credit score' you say? Who cares. Who really needs it. The country was FINE/BETTER before all this credit score/FICO BS started anyway. It is just a paper-tiger club that they try to scare you with. THEY ARE CROOKS. They need BILLIONS to stay afloat yet try (and do - if we let them) to rape the little guy (US TAX-PAYERS that are keeping them afloat....) REVOLT! Don't pay the crooks. Unless and until you and I start receiving our monthly dividend checks in the mail as partial stock holders of the business since it is our tax payer dollars that keeps this crooked, evil beast alive . . . .