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CC Balance Transfer Offer
Old 03-18-2007, 01:19 PM   #1
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CC Balance Transfer Offer

I've always limited my credit card life to simply paying off the balance every month. Am thinking about taking advantage of a 3.99% for life offer by transferring 20K of Car and Motorcyle loan balances (with higher rates). Other than factoring in the Transfer Fee, what could I be missing? Thanks
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Re: CC Balance Transfer Offer
Old 03-18-2007, 02:26 PM   #2
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Re: CC Balance Transfer Offer

Read the fine print for traps and extra fees. Are there limits on Balance transfer amounts?

Alot of those credit card offers are voided if you have any late payments. Plus... Are you sure there isn't a clause the allows them to change the rules and/or rates? Most of credit card offers are not binding for life.... there is usually a clause.
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Re: CC Balance Transfer Offer
Old 03-18-2007, 03:10 PM   #3
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Re: CC Balance Transfer Offer

Set up an automatic payment plan so you don't miss the minimum. You should be able to pay extra later.
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Re: CC Balance Transfer Offer
Old 03-18-2007, 03:39 PM   #4
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Re: CC Balance Transfer Offer

Also be sure you don't charge anything else on the card after you transfer - every one I've seen says "Payments are applied to balance with lowest rate first".

So if you transfer 20k then charge 200 bucks, that 200 bucks is earning interest until you've paid off the 20k.

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Re: CC Balance Transfer Offer
Old 03-18-2007, 08:56 PM   #5
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Re: CC Balance Transfer Offer

Many people do this successfully. I know somebody who has carried 200k at 0% for 2 years now...
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Re: CC Balance Transfer Offer
Old 03-19-2007, 03:02 AM   #6
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Re: CC Balance Transfer Offer

I once carried $30,000 at 0% for 18 months. You just have to be very careful, because most companies have a "universal default." Make sure you're not late on any payments. They can really make your life miserable. You could be late on a payment totally unrelated to your credit card and they might perhaps bump your interest up to 30%. Congress is currently discussing this problem.
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Re: CC Balance Transfer Offer
Old 03-19-2007, 03:20 AM   #7
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Re: CC Balance Transfer Offer

I just applied for a 12 months 0% BT card and was approved, so I'm going to take advantage of the $30k loan and invest it elsewhere.

In your situation, I think it's a good idea to take advantage of it. Anytime you can leverage other peoples' money and either reduce interest payments or increase investing, it's something that needs to be considered seriously.
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Re: CC Balance Transfer Offer
Old 03-19-2007, 09:34 AM   #8
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Re: CC Balance Transfer Offer

I always try to avoid a transfer fee, so only do that if you have to.

Read all the conditions very carefully. I had an offer that sounded like that one, but you were required to make a purchase every month to keep the low rate on the balance transfer. That one didn't seem to be worth it.

Last summer I got an offer for a no fee balance transfer from Capital One. It had a rate of 2.99% for one year and then the rate drops to 1.99% for the life of the balance transfer. I read everything 3 times and then called and asked questions before I took the deal. It really was what it said it was. We used it to pay off our Home Equity Line Of Credit ..... that we had previously used to pay off the mortgage.
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Re: CC Balance Transfer Offer
Old 03-19-2007, 09:51 AM   #9
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Re: CC Balance Transfer Offer

I paid for a substantial portion of my house using a few "2.99% for life" or 0% for 12-18 months credit cards. Just pay close attention to details.
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