Balance Transfer for Credit Card that Already Has Balance
Author: LookingForSolutions
Posted: Sun Dec 04, 2005 6:43 pm
Post subject: Balance Transfer for Credit Card that Already Has Balance
I have a Delta Sky Miles card with a high int rate (16%) with $3000 balance, limit is $4500. I've received an offer to transfer balances to the card, 2.99% until transfer paid off, they'll raise limit to $9500. I know if I transfer balances any payments I make will go toward the amount I transfer until paid off. Does the original $3000 balance just sit there collecting interest until the balance transfer is paid off? I have 2 other cards I want to pay off using the lower balance transfer rate (Citi, $2100 bal, 21% int rate and Discover, $5100 bal, 16% int rate ---and by the way I've never been late on any payments, these lovely rates were given to me after I was told "your balance to limit is too high"---fodder for another post---the vultures ). Anyway, seeing as the $3000 will grow as I'm paying down the balance with the lower int rate, does anyone see this as a 1) dumb thing to do, 2) smart thing to do, 3) somewhere in between. I've done a little math and while the interest will be added to the original balance, the total balance will be coming down. Any suggestions/comments will be greatly appreciated.
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Author: tonygoldston
Posted: Sun Dec 04, 2005 7:53 pm
Post subject: Balance Transfer for Credit Card that Already Has Balance
The balance on there would probably accrue interest at 16% while the transferred balance will be at 2.99%. If you are paying off balances at 21% and 16% you aren't doing any worse than you would be after transferring. I would definitely move the 21% over.
I would suggest calling the Delta Sky Miles and see if they can drop the rate on the 16%. Asking never hurts.
Author: Polonius
Posted: Sun Dec 04, 2005 8:12 pm
Post subject: Balance Transfer for Credit Card that Already Has Balance
Are you able to balance transfer the current balance on the Delta card to the Citibank and/or Discover? You do want to get rid of that $3000 balance BEFORE doing the other BT. Isn't there any way you can pay that off first, before doing the low-rate BT?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: mouse
Posted: Mon Dec 05, 2005 3:05 am
Post subject: Balance Transfer for Credit Card that Already Has Balance
Always start a new BT with a $0.00 balance (unless the existing APR is the same as the new BT)
Any existing balance will collect interest till the lower rate BT is PIF then the payments will go to the HIGHER RATE
Posted: Sun Dec 04, 2005 6:43 pm
Post subject: Balance Transfer for Credit Card that Already Has Balance
I have a Delta Sky Miles card with a high int rate (16%) with $3000 balance, limit is $4500. I've received an offer to transfer balances to the card, 2.99% until transfer paid off, they'll raise limit to $9500. I know if I transfer balances any payments I make will go toward the amount I transfer until paid off. Does the original $3000 balance just sit there collecting interest until the balance transfer is paid off? I have 2 other cards I want to pay off using the lower balance transfer rate (Citi, $2100 bal, 21% int rate and Discover, $5100 bal, 16% int rate ---and by the way I've never been late on any payments, these lovely rates were given to me after I was told "your balance to limit is too high"---fodder for another post---the vultures ). Anyway, seeing as the $3000 will grow as I'm paying down the balance with the lower int rate, does anyone see this as a 1) dumb thing to do, 2) smart thing to do, 3) somewhere in between. I've done a little math and while the interest will be added to the original balance, the total balance will be coming down. Any suggestions/comments will be greatly appreciated.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: tonygoldston
Posted: Sun Dec 04, 2005 7:53 pm
Post subject: Balance Transfer for Credit Card that Already Has Balance
The balance on there would probably accrue interest at 16% while the transferred balance will be at 2.99%. If you are paying off balances at 21% and 16% you aren't doing any worse than you would be after transferring. I would definitely move the 21% over.
I would suggest calling the Delta Sky Miles and see if they can drop the rate on the 16%. Asking never hurts.
Author: Polonius
Posted: Sun Dec 04, 2005 8:12 pm
Post subject: Balance Transfer for Credit Card that Already Has Balance
Are you able to balance transfer the current balance on the Delta card to the Citibank and/or Discover? You do want to get rid of that $3000 balance BEFORE doing the other BT. Isn't there any way you can pay that off first, before doing the low-rate BT?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: mouse
Posted: Mon Dec 05, 2005 3:05 am
Post subject: Balance Transfer for Credit Card that Already Has Balance
Always start a new BT with a $0.00 balance (unless the existing APR is the same as the new BT)
Any existing balance will collect interest till the lower rate BT is PIF then the payments will go to the HIGHER RATE
posted by CardRatings.com at 12:38 PM
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