Citbank Credit Card Balance Transfers
sueb
Author: Guest
Posted: Thu Jun 10, 2004 10:49 am
Post subject: Citbank Credit Card Balance Transfers
11/9/2002 4:47 pm CDT
Quick question. I am new to the whole balance transfer game regarding credit cards. I just got a 3.9 life of balance offer on my citibank platinum select card. I have other cards with really high rates I would like to transfer.
couple of quick questions.
If I transfer my entire limit, I currently have a 0 balance of my citibank platinum select card (will I be penalized an over credit limit fee because finance charges put me over my limit. Should I leave at least $200 on the account?
Also is it correct that lower rate balances or paid off before higher rate balances. So if I already have a balance it will sit at same amount but not get paid off before the low rate balance transfer offer. Is this correct.
Sorry if my questions are confusing.
Just trying to find out the possible downsides to transfers. Kind of nervous, since I have never done balance transfers before. I don't want to get screwed over.
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: Thu Jun 10, 2004 10:50 am
Post subject: Citbank Credit Card Balance Transfers
11/9/2002 4:50 pm CDT
Leave some balance available, otherwise you will get hit with a OVER-LIMIT fee.
Pay off the HIGHEST interest rate first.
Author: Dori
Posted: Thu Jun 10, 2004 10:51 am
Post subject: Citbank Credit Card Balance Transfers
11/9/2002 6:27 pm CDT
Sue,
You really have to read the information carefully. Usually when these offers are made there may be a transfer fee of 2% or 3% (of the amount transferred) or it may state that they will not charge you more than $50 per transfer or per tansaction.
Yes, payments are usually applied to the higher interest rate first then the lower interest rate. It is smart to pay off cards first of any outstanding balance and then transfer funds to pay off other higher cards. But you say that you have 0 balance already.
If purchases are at a different rate which I am pretty sure that they are with Citibank, I would stop using that card for purchases. Just do your transfer and don't use it for anything else for the length of your outstanding balance. This way you are assured that the interest will stay at exactly at this low rate. Hopefully you don't have any bills that get automatically paid with this particular account.
Your payment monthly will either be 2% or 3% of your balance due. i.e. $2000 bal could equal $40 if @2% or $60 if @ of 3%
Interest does accrue immediately for transfers, so you do want to subtract a months interest back out of your transfers so that you do not go over the limit as you know.
Rough calculation: .039 X (? transfer amount) divided by 12= your interest per month. Add a couple extra dollars for an extra cushion.
Author: Guest
Posted: Thu Jun 10, 2004 10:49 am
Post subject: Citbank Credit Card Balance Transfers
11/9/2002 4:47 pm CDT
Quick question. I am new to the whole balance transfer game regarding credit cards. I just got a 3.9 life of balance offer on my citibank platinum select card. I have other cards with really high rates I would like to transfer.
couple of quick questions.
If I transfer my entire limit, I currently have a 0 balance of my citibank platinum select card (will I be penalized an over credit limit fee because finance charges put me over my limit. Should I leave at least $200 on the account?
Also is it correct that lower rate balances or paid off before higher rate balances. So if I already have a balance it will sit at same amount but not get paid off before the low rate balance transfer offer. Is this correct.
Sorry if my questions are confusing.
Just trying to find out the possible downsides to transfers. Kind of nervous, since I have never done balance transfers before. I don't want to get screwed over.
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: Thu Jun 10, 2004 10:50 am
Post subject: Citbank Credit Card Balance Transfers
11/9/2002 4:50 pm CDT
Leave some balance available, otherwise you will get hit with a OVER-LIMIT fee.
Pay off the HIGHEST interest rate first.
Author: Dori
Posted: Thu Jun 10, 2004 10:51 am
Post subject: Citbank Credit Card Balance Transfers
11/9/2002 6:27 pm CDT
Sue,
You really have to read the information carefully. Usually when these offers are made there may be a transfer fee of 2% or 3% (of the amount transferred) or it may state that they will not charge you more than $50 per transfer or per tansaction.
Yes, payments are usually applied to the higher interest rate first then the lower interest rate. It is smart to pay off cards first of any outstanding balance and then transfer funds to pay off other higher cards. But you say that you have 0 balance already.
If purchases are at a different rate which I am pretty sure that they are with Citibank, I would stop using that card for purchases. Just do your transfer and don't use it for anything else for the length of your outstanding balance. This way you are assured that the interest will stay at exactly at this low rate. Hopefully you don't have any bills that get automatically paid with this particular account.
Your payment monthly will either be 2% or 3% of your balance due. i.e. $2000 bal could equal $40 if @2% or $60 if @ of 3%
Interest does accrue immediately for transfers, so you do want to subtract a months interest back out of your transfers so that you do not go over the limit as you know.
Rough calculation: .039 X (? transfer amount) divided by 12= your interest per month. Add a couple extra dollars for an extra cushion.
posted by CardRatings.com at 7:32 PM
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