Like lets say it goes from a mastercard to a visa. Will my benefits for my purchase change or stay the same?
When you balance transfers payments onto a different credit card does your benefits on your purchase change?
- Thread starter pcslookout
- Start date
I'm not entirely sure what benefits you're talking about. Do you mean things like cash back or whatever? All a balance transfer is essentially is one CC company paying the other one.
You talkin about extended manufacturer warranty? Cash Back? Sky Miles? What? All you're doing is paying the card off, they cant penalize you for that......
No it does not. Does this make a difference in any way ?
I am not sure if I am going to do it or not yet though.
SoulAssassin
Diamond Member
- Feb 1, 2001
- 6,135
- 2
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Originally posted by: RossMAN
Yes it does, can anyone answer why?
mugs, kranky and DaveSimmons are excluded from answering that question
Why ? Interest is started or something ?
RossMAN
Grand Nagus
- Feb 24, 2000
- 79,083
- 456
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Originally posted by: pcslookout
Originally posted by: RossMAN
Yes it does, can anyone answer why?
mugs, kranky and DaveSimmons are excluded from answering that question
Why ? Interest is started or something ?
It has something to do with interest.
Interest doubles on the original purchase thats on that credit card after you do a transfer balance ?
Safeway
Lifer
- Jun 22, 2004
- 12,075
- 11
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When you make a payment, the payment is credited to the lowest interest portion first.
If you have a $500 existing balance at 20%, and do a balance transfer of $2000 at 0%, and you send in a $500 check, it will be credited towards the $2000 balance at the lower interest.
Thus, the $500 balance is now $600, and you have a $1500 balance transfer balance. You will have to entirely pay off the balance transfer balance before you can pay on the purchase balance that is still accruing interest at 20%.
If you have a $500 existing balance at 20%, and do a balance transfer of $2000 at 0%, and you send in a $500 check, it will be credited towards the $2000 balance at the lower interest.
Thus, the $500 balance is now $600, and you have a $1500 balance transfer balance. You will have to entirely pay off the balance transfer balance before you can pay on the purchase balance that is still accruing interest at 20%.
The OP is saying what will change when you balance transfer with Visa or Mastercard
When you break down Credit Cards they are basically Banks that give you credit. Balance transfer basically transfers the credit(balance) to another bank. Visa, Mastercard, Amex, Discover is not a bank... it is Credit Card system that banks use. For example Citi has Mastercard Cards and Amex Cards... you can balance transfer from a card to another card within the Citi or transfer it to Chase Visa Card. There are MANY cards and that will offer different things such as Cashback/ Rewards, Interest Rate and such. You would want to find one with 0% on Balance transfers for a promotional period.
To answer your question, you can transfer your credit to any Bank and to any type of card. Also some cards might charge you a fee say 3% max $75 of the Balance Transfer. Be sure to know the exact details transfering a balance.
When you break down Credit Cards they are basically Banks that give you credit. Balance transfer basically transfers the credit(balance) to another bank. Visa, Mastercard, Amex, Discover is not a bank... it is Credit Card system that banks use. For example Citi has Mastercard Cards and Amex Cards... you can balance transfer from a card to another card within the Citi or transfer it to Chase Visa Card. There are MANY cards and that will offer different things such as Cashback/ Rewards, Interest Rate and such. You would want to find one with 0% on Balance transfers for a promotional period.
To answer your question, you can transfer your credit to any Bank and to any type of card. Also some cards might charge you a fee say 3% max $75 of the Balance Transfer. Be sure to know the exact details transfering a balance.
Does this happen or become a problem if you have no transactions on the credit card at all yet?
If not what would I have to pay in about 20 days to a month ? The minimum payment fee? How do I figure out how much that would be? 0% APR on balance transfers for 6 months.
They all charge 3% but thats not that bad I don't think ? Like for example 3% off $250 transfer balance would only be $7.50
I am just reading the fine print and want to make sure I understand what it means. Could anyone explain it?
? The promotional Annual Percentage Rate (APR) offer for Purchases, Balance Transfers and Check Cash Advances is 0% through your statement Closing Date in October 2007. However, your promotional rate period may end sooner. If any Total Minimum Payment Due is not received by the Payment Due Date or if your total outstanding balance exceeds your credit limit on any statement Closing Date ("promotion turn-off event"), then as of the first day of the billing cycle in which such promotion turn-off event occurs, the promotional period will end. Thereafter, the APRs for all new and outstanding Purchases, Balance Transfers and Check Cash Advances will be increased to indexed rates that vary according to the terms disclosed in your Account Agreement, as is or may be amended ("Agreement"). These rates may also be increased to the Default Rates as disclosed in your Agreement. If the Default Rates are applied, your account will no longer have variable APRs that fluctuate according to an index and margin.
We will allocate your payments to balances (including new transactions) with lower Annual Percentage Rates (APRs) (including zero percent) before balances with higher APRs. Borrowing the full amount of your available credit may result in an overlimit fee, as applicable.
The transaction fee for balance transfers is 3% of each transaction, minimum of $10 .
§ Available credit amount may not include recent purchases, advances, or transfers. When determining your transfer amount, be sure to plan for applicable fees and finance charges (see your account agreement for details).
? The promotional Annual Percentage Rate (APR) offer for Purchases, Balance Transfers and Check Cash Advances is 0% through your statement Closing Date in October 2007. However, your promotional rate period may end sooner. If any Total Minimum Payment Due is not received by the Payment Due Date or if your total outstanding balance exceeds your credit limit on any statement Closing Date ("promotion turn-off event"), then as of the first day of the billing cycle in which such promotion turn-off event occurs, the promotional period will end. Thereafter, the APRs for all new and outstanding Purchases, Balance Transfers and Check Cash Advances will be increased to indexed rates that vary according to the terms disclosed in your Account Agreement, as is or may be amended ("Agreement"). These rates may also be increased to the Default Rates as disclosed in your Agreement. If the Default Rates are applied, your account will no longer have variable APRs that fluctuate according to an index and margin.
We will allocate your payments to balances (including new transactions) with lower Annual Percentage Rates (APRs) (including zero percent) before balances with higher APRs. Borrowing the full amount of your available credit may result in an overlimit fee, as applicable.
The transaction fee for balance transfers is 3% of each transaction, minimum of $10 .
§ Available credit amount may not include recent purchases, advances, or transfers. When determining your transfer amount, be sure to plan for applicable fees and finance charges (see your account agreement for details).
kranky
Elite Member
- Oct 9, 1999
- 21,020
- 156
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It means you are being offered a 0% APR for all your purchases and balance transfers. That rate will be in effect until the statement which closes in October. But if you don't pay on time or go over your credit limit, then you lose your 0% rate earlier. Your rate will go up to whatever they told you in the account agreement.
Any payments you make are credited against the balance with the lowest APR first. [If your entire balance is 0% APR, this makes no difference. But if you have balances with DIFFERENT APRs, remember that they are going to pay off the lowest rate balance first]
If you make a balance transfer, they will charge you a fee of 3% each time, but at least $10.
Any payments you make are credited against the balance with the lowest APR first. [If your entire balance is 0% APR, this makes no difference. But if you have balances with DIFFERENT APRs, remember that they are going to pay off the lowest rate balance first]
If you make a balance transfer, they will charge you a fee of 3% each time, but at least $10.
Thanks. I understand mostly what you are saying except for the part in bold.
Could you explain further please?
kranky
Elite Member
- Oct 9, 1999
- 21,020
- 156
- 106
A made-up example: let's say your regular interest rate is 12.9% APR.
They send you a check which has a 0% APR offer for six months. You write it out for $100 and cash it. You now have a balance of $100 at 0% APR. A week later, you charge $200 at a store. Now you have $100 at 0%, and $200 at 12.9% on your account.
If you make a payment of $70, they will apply that to your 0% APR balance because it is the lowest APR, and you'll end up with a balance of $30 at 0% APR, and $200 at 12.9% APR.
They send you a check which has a 0% APR offer for six months. You write it out for $100 and cash it. You now have a balance of $100 at 0% APR. A week later, you charge $200 at a store. Now you have $100 at 0%, and $200 at 12.9% on your account.
If you make a payment of $70, they will apply that to your 0% APR balance because it is the lowest APR, and you'll end up with a balance of $30 at 0% APR, and $200 at 12.9% APR.
So the key with 0% balance transfer APR and 0% purchase APR is to keep the 0% APR you should only make one purchase total on the credit card then put it in a draw until you have it all paid off at least within 6 months? Though pay the minimum payment each month so your interest stays at 0%.
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