Credit Tips: How Many Times Can you Balance Transfer a Credit Card

Posted On: May 1, 2006

Author: LookingForSolutions
Posted: Sun Dec 04, 2005 6:43 pm
Post subject: Putting balance transfer on card that already has a 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.

Author: tonygoldston
Posted: Sun Dec 04, 2005 7:53 pm
Post subject:

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:

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?