What is a Balance Transfer on a Credit Card?
Author: Ira
Posted: Sun Feb 06, 2005 6:16 pm
Post subject: What is a "balance transfer?"
There has been some discussion here on what exactly constitutes a balance transfer and whether you can do a balance transfer to yourself. I just received a 0% offer from JP Morgan-Chase, and I thought that some of the language they use might be helpful. I added the highlighting for clarity.
Quote:
"...and because of your history on your account ending in xxxx, you have options. You can use all four checks and save with a low promotional 0% fixed annual percentage rate (APR) through your last billing cycle that ends before November 1, 2005. So it's like writing yourself a fixed rate personal loan with no application to fill out. Use of these checks requires that your account is in good standing.
This is an ideal opportunity to save on higher APR balances from other credit cards, spread out the cost of home repairs and improvements, replace or add appliances, pay for educational expenses, revamp your wardrobe, or simply deposit one in your bank account for extra cash."
Although this offer is quite clear that it permits me to write a check to myself, I hasten to say that you must carefully read the terms and conditions of any similar offer you receive, since some might specifically prohibit that course of action.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Sun Feb 06, 2005 7:16 pm
Post subject: What is a Balance Transfer on a Credit Card?
Ira, I've got 6 credit cards with Chase. On one of them, I received a 3.99% for life of loan ($50 fee maximum) offer if I responded by 1/31. On two others, I have on hand a 4.99% for life of loan (same $50 maximum fee) if I respond by 2/28. On the remaining three, I have no special offer at all--Chase Online says I can do the BTs at my usual purchase rates plus a $75 maximum fee. All three of the special offers are like the one you quote as far as how they can be used--just checks which I can deposit in a bank account or use in any way.
Any idea why you got a 9 month 0% offer? I gather this isn't a new card for you...
I used to do tons of cost-free balance transfers with the 6 Chase cards. There were no BT fees and the transfers were treated as purchases with the usual grace periods. Saved a LOT of money that way! But terms changed for all the cards late last year when the 3% maximum $75 fee was put in.
Author: Ira
Posted: Mon Feb 07, 2005 2:00 am
Post subject: What is a Balance Transfer on a Credit Card?
Correct, it's not a new card, but it's one of my favorite 0% cards. I had a 15 month 0% offer expire in November, and now out of the blue comes this new offer. I have a $19,000.00 limit on this card, so I wrote a check to myself for $18,800.00 and plopped it into my ING account which is currently paying 2.35%. I figure that I'll make roughly $330.00 in interest, less the $50.00 BT fee, for a net profit to me of $280.00.
BTW, my 1099-INT from ING showed that I made just under $900.00 in BT interest last year. Not too shabby for working with OPM!
author: Board Monitor
Posted: Mon Feb 07, 2005 10:29 am
Post subject:
Ira,
Let me get this straight...you made 900 bucks off of 0% balance transfer offers?!? Talk about easy money.
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Sun Feb 06, 2005 6:16 pm
Post subject: What is a "balance transfer?"
There has been some discussion here on what exactly constitutes a balance transfer and whether you can do a balance transfer to yourself. I just received a 0% offer from JP Morgan-Chase, and I thought that some of the language they use might be helpful. I added the highlighting for clarity.
Quote:
"...and because of your history on your account ending in xxxx, you have options. You can use all four checks and save with a low promotional 0% fixed annual percentage rate (APR) through your last billing cycle that ends before November 1, 2005. So it's like writing yourself a fixed rate personal loan with no application to fill out. Use of these checks requires that your account is in good standing.
This is an ideal opportunity to save on higher APR balances from other credit cards, spread out the cost of home repairs and improvements, replace or add appliances, pay for educational expenses, revamp your wardrobe, or simply deposit one in your bank account for extra cash."
Although this offer is quite clear that it permits me to write a check to myself, I hasten to say that you must carefully read the terms and conditions of any similar offer you receive, since some might specifically prohibit that course of action.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Sun Feb 06, 2005 7:16 pm
Post subject: What is a Balance Transfer on a Credit Card?
Ira, I've got 6 credit cards with Chase. On one of them, I received a 3.99% for life of loan ($50 fee maximum) offer if I responded by 1/31. On two others, I have on hand a 4.99% for life of loan (same $50 maximum fee) if I respond by 2/28. On the remaining three, I have no special offer at all--Chase Online says I can do the BTs at my usual purchase rates plus a $75 maximum fee. All three of the special offers are like the one you quote as far as how they can be used--just checks which I can deposit in a bank account or use in any way.
Any idea why you got a 9 month 0% offer? I gather this isn't a new card for you...
I used to do tons of cost-free balance transfers with the 6 Chase cards. There were no BT fees and the transfers were treated as purchases with the usual grace periods. Saved a LOT of money that way! But terms changed for all the cards late last year when the 3% maximum $75 fee was put in.
Author: Ira
Posted: Mon Feb 07, 2005 2:00 am
Post subject: What is a Balance Transfer on a Credit Card?
Correct, it's not a new card, but it's one of my favorite 0% cards. I had a 15 month 0% offer expire in November, and now out of the blue comes this new offer. I have a $19,000.00 limit on this card, so I wrote a check to myself for $18,800.00 and plopped it into my ING account which is currently paying 2.35%. I figure that I'll make roughly $330.00 in interest, less the $50.00 BT fee, for a net profit to me of $280.00.
BTW, my 1099-INT from ING showed that I made just under $900.00 in BT interest last year. Not too shabby for working with OPM!
author: Board Monitor
Posted: Mon Feb 07, 2005 10:29 am
Post subject:
Ira,
Let me get this straight...you made 900 bucks off of 0% balance transfer offers?!? Talk about easy money.
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 5:11 PM
0 Comments:
Post a Comment
<< Home