Can I get a lower fee in a 0% BT by calling my credit card company?
Guest: unemployedandbored
Post subject: Can I get a lower fee in a 0% BT by calling my credit card company?
Posted: Wed Mar 22, 2006 10:41 am
Recently I have recieved quite a few 0% Convenience Checks (Balance Transfer) offers from my existing Credit Card Companies. The Zero percent offers are good for as long as nine months. I get all excited about all the Interest Income (after depositing the checks) I can make during the nine month period UNTIL I SEE THE BALANCE TRANSFER FEE!
On one of my credit cards I have $21000.00 in available credit but they wanted me to pay a 3% fee (no maximum) for a balance transfer/Check. The $630.00 fee would wipe out any interest profit I would make from my bank.
My question is: would the Credit Card company offer me a better fee arrangement if I called them? Do you have any experiences asking for a better deal? My credit rating is great and I have no balance on any Credit Card right now.
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Guest: rapjunkie
Credit Expert (100+ Posts)
Posted: Wed Mar 22, 2006 12:04 pm
It's definitely worth a call. You may at least be able to get them to put a cap on the fee - like how most of them cap at $75.
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Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Mar 22, 2006 12:15 pm
It never hurts to call and ask. From what you tell us, you should be able to get other offers from other cards with capped fees or no fees. Why not apply for other cards?
Quote:
The $630.00 fee would wipe out any interest profit I would make from my bank.
For a 9-month 0% offer, you'd still make a little by investing the funds in a savings account at 4.8%, assuming you make minimum payments. Also, remember, it's a bad idea to max out the offer and assume you have a full $21,000 available. (For one thing, the $630.00 fee will put you over your credit limit!). Shoot for using under 90% of your limit at all times; under 50% is better if you can stand to give up the free money...
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Mar 22, 2006 12:26 pm
If you took out a $20,000.00 balance transfer and invested it at 4.8% you would make on average something over $80.00/month in interest. You'd probably end up with something like $975.00 in interest over one year. It will have cost you $630.00 for a net profit of about $345.00. You have to be the judge of whether that's worth it.
_________________
Do not let what you cannot do interfere with what you can do.
Ira
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Mar 22, 2006 6:59 pm
It's a little tighter than that, Ira--in this example, the BT was just for 9 months and you have to consider that you have to make repayments each month (2%? 3%?) so you don't earn interest on the full $20K at all times. I still think you come out ahead, but not by much...
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: TomfromCT
Credit Expert (100+ Posts)
Posted: Wed Mar 22, 2006 7:12 pm
Polonius and Ira discussing an issue.
Its like cool man.
_________________
Average FICO score: 709
Average FAKO score: 703
56 Months of perfection
WOOOHOOOOOO !!!!!!!!!!!!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: Can I get a lower fee in a 0% BT by calling my credit card company?
Posted: Wed Mar 22, 2006 10:41 am
Recently I have recieved quite a few 0% Convenience Checks (Balance Transfer) offers from my existing Credit Card Companies. The Zero percent offers are good for as long as nine months. I get all excited about all the Interest Income (after depositing the checks) I can make during the nine month period UNTIL I SEE THE BALANCE TRANSFER FEE!
On one of my credit cards I have $21000.00 in available credit but they wanted me to pay a 3% fee (no maximum) for a balance transfer/Check. The $630.00 fee would wipe out any interest profit I would make from my bank.
My question is: would the Credit Card company offer me a better fee arrangement if I called them? Do you have any experiences asking for a better deal? My credit rating is great and I have no balance on any Credit Card right now.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: rapjunkie
Credit Expert (100+ Posts)
Posted: Wed Mar 22, 2006 12:04 pm
It's definitely worth a call. You may at least be able to get them to put a cap on the fee - like how most of them cap at $75.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Mar 22, 2006 12:15 pm
It never hurts to call and ask. From what you tell us, you should be able to get other offers from other cards with capped fees or no fees. Why not apply for other cards?
Quote:
The $630.00 fee would wipe out any interest profit I would make from my bank.
For a 9-month 0% offer, you'd still make a little by investing the funds in a savings account at 4.8%, assuming you make minimum payments. Also, remember, it's a bad idea to max out the offer and assume you have a full $21,000 available. (For one thing, the $630.00 fee will put you over your credit limit!). Shoot for using under 90% of your limit at all times; under 50% is better if you can stand to give up the free money...
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Mar 22, 2006 12:26 pm
If you took out a $20,000.00 balance transfer and invested it at 4.8% you would make on average something over $80.00/month in interest. You'd probably end up with something like $975.00 in interest over one year. It will have cost you $630.00 for a net profit of about $345.00. You have to be the judge of whether that's worth it.
_________________
Do not let what you cannot do interfere with what you can do.
Ira
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Mar 22, 2006 6:59 pm
It's a little tighter than that, Ira--in this example, the BT was just for 9 months and you have to consider that you have to make repayments each month (2%? 3%?) so you don't earn interest on the full $20K at all times. I still think you come out ahead, but not by much...
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: TomfromCT
Credit Expert (100+ Posts)
Posted: Wed Mar 22, 2006 7:12 pm
Polonius and Ira discussing an issue.
Its like cool man.
_________________
Average FICO score: 709
Average FAKO score: 703
56 Months of perfection
WOOOHOOOOOO !!!!!!!!!!!!
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 4:49 PM
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