I don't understand how anyone can say that this is harmful to your credit history or how anyone can say that this is illegal or unethical.
Here is the expanded nutshell..
1. Check with the CC Co to find out what they will accept as a balance transfer. Some will allow secured loans to be transfered (cars and I have a friend who even had the last 30K of his house transfered to a card).
2. Check with the CC Co to find out what happens to you APR after the 1 year mark if you don't pay off the transfer amount. Many times they accumulate a large APR from the day of transfer if you don't pay it off within a year.
3. Check with the CC Co to find out what the APR will become if you are 1 second late on a payment. As posted above, many times they go to 23%+. remember: balance transfers aren't subject to federal APR laws and can go as high as they want them too if you default or don't pay it off within the contract time.
4. When you transfer a balance, make sure that your previous card is canceled. The only way that transfering balances can harm your Credit History is if you leave the credit card open and you have that CC as available credit which can hurt. If you close it and were current on all payments, there is absolutely no negative impact at all.
5. This requires alot of diligence but can be done. Make sure you have a calendar dedicated to nothing but your CC Payments and the transfers. Start working on transfering your 0% about 3 months prior to the end of the 0% introductory rate.
The reason that banks do this is that they don't lose any money but they do (at least) gain market presence and some people will keep their card with them open.
Here is the expanded nutshell..
1. Check with the CC Co to find out what they will accept as a balance transfer. Some will allow secured loans to be transfered (cars and I have a friend who even had the last 30K of his house transfered to a card).
2. Check with the CC Co to find out what happens to you APR after the 1 year mark if you don't pay off the transfer amount. Many times they accumulate a large APR from the day of transfer if you don't pay it off within a year.
3. Check with the CC Co to find out what the APR will become if you are 1 second late on a payment. As posted above, many times they go to 23%+. remember: balance transfers aren't subject to federal APR laws and can go as high as they want them too if you default or don't pay it off within the contract time.
4. When you transfer a balance, make sure that your previous card is canceled. The only way that transfering balances can harm your Credit History is if you leave the credit card open and you have that CC as available credit which can hurt. If you close it and were current on all payments, there is absolutely no negative impact at all.
5. This requires alot of diligence but can be done. Make sure you have a calendar dedicated to nothing but your CC Payments and the transfers. Start working on transfering your 0% about 3 months prior to the end of the 0% introductory rate.
The reason that banks do this is that they don't lose any money but they do (at least) gain market presence and some people will keep their card with them open.
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