Comments on: How to Avoid A Major 0% Balance Transfer Credit Card Mistake http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/ Personal Finance Beyond Credit Cards and Balance Transfers Mon, 15 Mar 2010 19:30:38 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Christine http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-133263 Christine Mon, 08 Feb 2010 20:32:16 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-133263 Hey Raymond, I am a small business owner and was interested in applying for a credit card with a $0 annual fee, 0% apr for 12 monthes, and either a 0% or 3% balance transfer fee. The only problem is, I want to be able to balance transfer an amount of about $30,000, and not a lot of credit card companies nowadays are allowing that large of a credit limit. Given that i have an excellent credit rating, what companies should I look into to apply? Continuously applying for new credit cards just to find out the credit limit can't be helping my credit score. Any suggestions? Hey Raymond,
I am a small business owner and was interested in applying for a credit card with a $0 annual fee, 0% apr for 12 monthes, and either a 0% or 3% balance transfer fee. The only problem is, I want to be able to balance transfer an amount of about $30,000, and not a lot of credit card companies nowadays are allowing that large of a credit limit. Given that i have an excellent credit rating, what companies should I look into to apply? Continuously applying for new credit cards just to find out the credit limit can’t be helping my credit score. Any suggestions?

]]> By: lesley http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-115967 lesley Wed, 09 Dec 2009 14:24:32 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-115967 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.) 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.)

]]> By: Raymond http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-95328 Raymond Wed, 09 Sep 2009 16:15:53 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-95328 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. 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.

]]> By: Russ http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-95326 Russ Wed, 09 Sep 2009 16:08:56 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-95326 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? 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?

]]> By: OLITA http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-87542 OLITA Wed, 05 Aug 2009 03:05:45 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-87542 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.... 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….

]]> By: Cheng http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-80642 Cheng Sun, 28 Jun 2009 07:29:13 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-80642 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.. 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..

]]> By: crossroads http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-80573 crossroads Sat, 27 Jun 2009 23:24:04 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-80573 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. 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.

]]> By: Dean http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-80141 Dean Fri, 26 Jun 2009 02:19:29 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-80141 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 . . . . 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 . . . .

]]> By: crossroads http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-80111 crossroads Thu, 25 Jun 2009 23:39:32 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-80111 I just got a letter from Chase saying they are increasing my minimum payment percectage to 5%. It was 2%. Now my payment will increase from $451 to $1112. There is no way we can afford such a payment. We have a large balance of $22000 which I have worked hard at paying down (paying more that the minimum due and on time). Now I don't know what to do- my increased payment starts in August. I'm looking into doing a balance transfer but I don't think any credit card co. would allow me to transfer such a large amount especially in today's credit crunch. We have a good fico score of about 750. Does anyone know if this is possible or know of any credit card co's that might be willing to let us transfer that much? If not, I don't think it would be worth it to just transfer say $5,000 of it. My payment on the rest would still be too much. I hope someone can give me some advice. I just got a letter from Chase saying they are increasing my minimum payment percectage to 5%. It was 2%. Now my payment will increase from $451 to $1112. There is no way we can afford such a payment. We have a large balance of $22000 which I have worked hard at paying down (paying more that the minimum due and on time). Now I don’t know what to do- my increased payment starts in August. I’m looking into doing a balance transfer but I don’t think any credit card co. would allow me to transfer such a large amount especially in today’s credit crunch. We have a good fico score of about 750. Does anyone know if this is possible or know of any credit card co’s that might be willing to let us transfer that much? If not, I don’t think it would be worth it to just transfer say $5,000 of it. My payment on the rest would still be too much. I hope someone can give me some advice.

]]> By: Shadow http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-75509 Shadow Tue, 02 Jun 2009 03:27:50 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-75509 I'm hoping someone could answer this question..... I read about the Citicard Balance Transfer Checks. I have some of them laying around offering 2.99% until Nov 2010. I have about $8100 I'd like to transfer but the catch is that its on my husbands Citicard. Can I write the check to him directly, and then have him pay off his credit card from his bank account? I can't see how Citi could block that but if so I'd really like to know how ahead of time :) Thanks! I’m hoping someone could answer this question…..

I read about the Citicard Balance Transfer Checks. I have some of them laying around offering 2.99% until Nov 2010. I have about $8100 I’d like to transfer but the catch is that its on my husbands Citicard. Can I write the check to him directly, and then have him pay off his credit card from his bank account? I can’t see how Citi could block that but if so I’d really like to know how ahead of time :)

Thanks!

]]> By: Kristen http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-74180 Kristen Fri, 29 May 2009 17:12:06 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-74180 I don't understand what you mean by putting the extra cash in a savings account. What extra cash are you talking about? Are you talking about the interest that you have been charged on the original card before the balance transfer? Are you talking about taking out some cash advances off the original card and then transferring to the 0% interest card? Could you please give me some kind of scenario so I can see what you're saying and what I need to do in order to benefit from the same situation? Thanks. I don’t understand what you mean by putting the extra cash in a savings account. What extra cash are you talking about? Are you talking about the interest that you have been charged on the original card before the balance transfer? Are you talking about taking out some cash advances off the original card and then transferring to the 0% interest card? Could you please give me some kind of scenario so I can see what you’re saying and what I need to do in order to benefit from the same situation? Thanks.

]]> By: AKB http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-71345 AKB Tue, 19 May 2009 15:44:00 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-71345 Thank you for the information. My FICO score is 765, so am I to assume that it will be easier for me to obtain the 0%? Also, you do suggest sticking with the 0% even though I will not be able to pay off the balance in 6 months to a year? Of course I am worried about my score going down because of repeated requests. I do have an existing card which is offering me 0% until November, or 2.99% until 8/2010. There is not enough credit on that card to put the whole balance, but a good portion of it. Of course there is a 3% transaction fee...Trying to decide, but it's so confusing sometimes. I will keep my eyes open for the Discover offer. Thank you for the information. My FICO score is 765, so am I to assume that it will be easier for me to obtain the 0%? Also, you do suggest sticking with the 0% even though I will not be able to pay off the balance in 6 months to a year? Of course I am worried about my score going down because of repeated requests. I do have an existing card which is offering me 0% until November, or 2.99% until 8/2010. There is not enough credit on that card to put the whole balance, but a good portion of it. Of course there is a 3% transaction fee…Trying to decide, but it’s so confusing sometimes. I will keep my eyes open for the Discover offer.

]]> By: Raymond http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-71053 Raymond Mon, 18 May 2009 23:09:42 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-71053 AKB, It would help if I knew what your FICO credit score is. A high FICO score ensures a much higher likelihood your 0% balance transfer credit card applications will be approved. A high credit score also ensures that the hard credit checks associated with repeated credit card applications will not substantially impact your credit score health. But in general, I would recommend sticking with 0% APR credit cards if possible. Also, keep your eyes peeled for those Discover card lifetime balance transfer offers floating around. They offer 0% for the life of the transfer, except there is a catch...you have to make a few purchase transactions every month - transactions that incur interest at the higher purchase rate. AKB,

It would help if I knew what your FICO credit score is. A high FICO score ensures a much higher likelihood your 0% balance transfer credit card applications will be approved. A high credit score also ensures that the hard credit checks associated with repeated credit card applications will not substantially impact your credit score health.

But in general, I would recommend sticking with 0% APR credit cards if possible. Also, keep your eyes peeled for those Discover card lifetime balance transfer offers floating around. They offer 0% for the life of the transfer, except there is a catch…you have to make a few purchase transactions every month – transactions that incur interest at the higher purchase rate.

]]> By: AKB http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-70975 AKB Mon, 18 May 2009 20:16:08 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-70975 I have approximately 15,500 in total credit card debt on two cards with 14,500 on one card with about half of that at 0% until November. I have struggled with this for a long time and really want to develop a plan to pay this off within 2-3 years. I am confident that it can happen, but I need some advice on how to proceed. Is it feasible to split the 14,500 between two cards-perhaps one being an existing card? Also, would it be wiser for me to seek out a low interest rate for the life of the loan because I know that I will not be able to pay this off in a year? I'm concerned that I will not be able to transfer the entire balance onto another card. I assume it is not possible to request the transfer be of the dollar amount not at 0%? Any advice would be appreciated. I have approximately 15,500 in total credit card debt on two cards with 14,500 on one card with about half of that at 0% until November. I have struggled with this for a long time and really want to develop a plan to pay this off within 2-3 years. I am confident that it can happen, but I need some advice on how to proceed. Is it feasible to split the 14,500 between two cards-perhaps one being an existing card? Also, would it be wiser for me to seek out a low interest rate for the life of the loan because I know that I will not be able to pay this off in a year? I’m concerned that I will not be able to transfer the entire balance onto another card. I assume it is not possible to request the transfer be of the dollar amount not at 0%? Any advice would be appreciated.

]]> By: Raymond http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/comment-page-1/#comment-64958 Raymond Wed, 15 Apr 2009 06:20:20 +0000 http://www.moneybluebook.com/how-to-avoid-a-major-0-balance-transfer-credit-card-mistake/#comment-64958 Dead Welsh, I'm presuming your US Bank balance transfer credit card does not set a minimum purchase amount for the requirement that you must make at least one purchase per year. If that's the case, then I'd advise you use the card on the cheapest product you can find....something like a 5 cent candy if that's possible. The lower the purchase amount, the less likely the compound interest effect of the APR interest will really harm you. However, even if you carried a sizable balance at 0% APR and added a few purchases of $10 at the normal credit card interest rate, the $10 alone isn't going to compound all that quickly unless you drag it out for years and years. It'll probably take more than 15 years for that original $10 to add up with interest to exceed more than $100. Dead Welsh,

I’m presuming your US Bank balance transfer credit card does not set a minimum purchase amount for the requirement that you must make at least one purchase per year. If that’s the case, then I’d advise you use the card on the cheapest product you can find….something like a 5 cent candy if that’s possible. The lower the purchase amount, the less likely the compound interest effect of the APR interest will really harm you.

However, even if you carried a sizable balance at 0% APR and added a few purchases of $10 at the normal credit card interest rate, the $10 alone isn’t going to compound all that quickly unless you drag it out for years and years. It’ll probably take more than 15 years for that original $10 to add up with interest to exceed more than $100.

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