Credit card question..

[Syringer]

Why do some cards offer 0% balance transfers, but have interest on purchases? Is there any reason not to just purchase something from another card and then transfer it over to the 0% balance card (if you can't make full payments)?

 

[FelixDeCat]

Originally posted by: Syringer
Why do some cards offer 0% balance transfers, but have interest on purchases? Is there any reason not to just purchase something from another card and then transfer it over to the 0% balance card (if you can't make full payments)?

Sounds like a plan, but make sure you dont have BT fees. And I have seen some with 0% purchases before.

 

[TimMyMac]

they want you to get that card charged up, most of the time balance transfers only last 6 or so months, very few people accually get them paid off in that time, so when it does come six months they can start tacking on their own interest and make the money off of the debt. Lots of money in suppling revolving debts. Lots of it.

 

[spidey07]

It is done to ruin your finances by trapping you with a balance transfer and then hiking the rate up to 25% on you. Forever in debt, paying nothing but interest and watching your hard earned money go up in smoke every month/year.

 

[MrBond]

Most people transfer their old balance to a new credit card, then stop using the old card and start using the new. Your payments to the new card go to pay off the oldest debt, ie: your balance transfer. So you're paying off the 0% interest portion of the money, while being charged whatever interest rate for the new purchases.

The only time you should transfer money to a card with 0% balance transfers is if you plan on never using the new card and taking the time available to pay off the balance (ie: 6 months interest free on balance transfers, so pay it off before that 6 months is up)

 

[FelixDeCat]

Originally posted by: MrBond
Most people transfer their old balance to a new credit card, then stop using the old card and start using the new. Your payments to the new card go to pay off the oldest debt, ie: your balance transfer. So you're paying off the 0% interest portion of the money, while being charged whatever interest rate for the new purchases.

The only time you should transfer money to a card with 0% balance transfers is if you plan on never using the new card and taking the time available to pay off the balance (ie: 6 months interest free on balance transfers, so pay it off before that 6 months is up)

Or even better have two cards with the same limit and move them back n forth at no or low apr's.

One card with a 10k bal, new card 0% 12 mos 10k limit. Within about 6 or seven months, the oringal card misses your business and starts to make offers for you to come back. Works everytime. :thumbsup: