Credit Card Question

[MikeyIs4Dcats]

My credit card states it treats balance transfers as a cash advance. The PAR is the same as for purchases. Is this a big deal? I'd like to transfer a balance from another card to this one but don't want to get screwed.

 

[sswingle]

If the interest rate is the same as for purchases, that is ok. Normally they are higher. However, just remember that the cash advance interest will start accumulating immediately instead of the end of the month like normal credit charges.

 

[cubby1223]

It's not a big deal if you can save enough money on interest with the new card versus the old card.

 

[MikeyIs4Dcats]

here's another question:

I have 3 cards:
A, B, and C
A and C are the same creditor, so I can't transfer balances between them, but I have low % BT offers for said company.
Can I transfer from C to B then back to C, and from A to B and back to A?

That would allow me to take advatage of the low % BT offers.

 

[jarfykk]

But then you might get hit with a bunch of 1% fees for the balance. Read the fine print and the terms...worth looking into though.

 

[spidey07]

Yep, you'll need to read the terms and fine print on each and every card.

 

[randomlinh]

1%? all mine are 3% or max $50-$75 for a BT. Assuming there's no promo to waive those fees.

 

[kamranziadar]

They will charge you balance transfer fee that could be upto $50 per balance transfer.

 

[dullard]

Originally posted by: randomlinh
1%? all mine are 3% or max $50-$75 for a BT. Assuming there's no promo to waive those fees.

Yep, that is where you risk being screwed. A probable 3% fee with every transfer adds up quickly.

Some cards are starting to charge to transfer out as well as in. So, in the worst case that could be 6% per transfer. Luckilly, this is rare. And with special offers this can be reduced.

You may very well be better off searching for a real loan and eliminating the balance altogether. Stop using the CC as a loan.