Balance Transfer Cards (WAS I TRICKED?)

**jjr417** · 01-11-2012, 09:11 AM

Call and ask what credit limit the bank will offer you. Then you can decide whether the card is worth it to you.

Also make sure you ask if there is a balance transfer fee. Many banks charge a percentage of the balance transferred, increasing your total debt and either negating or diminishing your interest savings.

Ask around and find a card that offers the rate and credit limit you want and that has no balance transfer fee. You might try a local bank or a credit union, not just the big guys.

Jennifer Roland
Writer and Editor

**bjl584** · 01-11-2012, 09:29 AM

Originally posted by tcn_321 View Post

Happy New Year to All,
Last year my goal was to pay off my high balance credit card which had a balance of 3k. I read many blogs and websites and decided the Chase Slate card would be the best fit for me. They were offering 0% on purchases and transfers for the first 12 months which was great considering my current card rate is a high 22% interest rate. I appiled and was approved instantly and told card would be mailed out in a couple weeks. I received the card but to my surprise only given a $400 credit limit, well below what I requested which made the card useless since the 0% rate was a one-time transfer offer.

Forward to 2012:
I have 4k I want to transfer to a Citi card that offers 0% for 18 months. Is there a way to find out if the entire 4k will be transferred so I won't end up with another card I will never use? I also checked my Fico scores last week and my transunion was 760 and my Equifax was 780.

Lastly, will a transfer hurt my current scores?

Thanks in advance for all comments!

So last year you had 3000 in credit card debt, and now you have 4000 in credit card debt? All the balance transers in the world aren't going to help you. You need to change your spending habits. Growing credit card debt is a good indication of someone living above their means.

As far as your question goes, you will need to make absolutely sure that the full amount will be transferred before you sign up for the card.

**disneysteve** · 01-11-2012, 09:34 AM

Originally posted by bjl584 View Post

So last year you had 3000 in credit card debt, and now you have 4000 in credit card debt? All the balance transers in the world aren't going to help you.

I couldn't agree more. So not only did you pay off absolutely none of your debt in 2011, you increased your debt by 33%.

You can not borrow your way out of debt!

Forget trying to play the balance transfer game. Slash your budget, free up cash and pay off what you owe. And immediately stop using your credit cards. Stop spending money you don't have. Stop buying things you can't afford.

**pdweaver** · 01-11-2012, 10:52 AM

I agree with the posts above.

There is no way to know what they will aprove you for. The only way to get a higher rate in your case would most likely be to have a higher income that you report on the application.

Good luck

**bjl584** · 01-11-2012, 12:23 PM

One thing to add:

You weren't tricked. You were preapproved. Preapproval is basically a confirmation that said credit card company has decided to extend you a line of credit. The interest rate could be X and the credit could be in the amount of X. When you actually received your card it was for the amount that the company decided was based based on your credit history. 3K at 22% does not bode well in their decision making process.

**tcn_321** · 01-11-2012, 05:33 PM

Originally posted by bjl584 View Post

So last year you had 3000 in credit card debt, and now you have 4000 in credit card debt? All the balance transers in the world aren't going to help you. You need to change your spending habits. Growing credit card debt is a good indication of someone living above their means.

As far as your question goes, you will need to make absolutely sure that the full amount will be transferred before you sign up for the card.

Thank you for responding. I actually paid the 3k balance off last year. This 4k is from unexpected hospital bills. The card has a credit line of 12k and I never try to carry a balance on it or charge more than 1k in a single month. I just figured it would save me some cash trying to transfer the balance rather than paying it monthly at the current interest rate. I do my best using credit responsibly but sometimes life interrupts those plans, just trying to figure out a way to pay it off without paying tons of interest. I can most likely make a payment of $500-$600 a month.

**tcn_321** · 01-11-2012, 06:01 PM

Originally posted by disneysteve View Post

I couldn't agree more. So not only did you pay off absolutely none of your debt in 2011, you increased your debt by 33%.

You can not borrow your way out of debt!

Forget trying to play the balance transfer game. Slash your budget, free up cash and pay off what you owe. And immediately stop using your credit cards. Stop spending money you don't have. Stop buying things you can't afford.

I'm not viewing it as "borrowing my way out of debt" I'm going to pay it off regardless but wouldn't it be better if I was able to pay $500 a month at 0% interest opposed to the 22% interest as it stands now? My Fico scores are decent now (760 and 780) and my goal is to be around 800. Would a balance transfer hurt my scores at all?

**disneysteve** · 01-11-2012, 07:02 PM

Originally posted by tcn_321 View Post

Would a balance transfer hurt my scores at all?

The balance transfer itself doesn't hurt your score. What does hurt your score is a few other things. Applying for new credit accounts lowers your score (whether you are accepted or not - it is the inquiries that count). The other thing that may be an issue is credit utilization. You want to keep your balance no higher than 30% of your limit so if you are transferring $4,000, you need a limit of at least $13,300 and the higher the better.

**bjl584** · 01-12-2012, 04:22 AM

Originally posted by tcn_321 View Post

Thank you for responding. I actually paid the 3k balance off last year. This 4k is from unexpected hospital bills. The card has a credit line of 12k and I never try to carry a balance on it or charge more than 1k in a single month. I just figured it would save me some cash trying to transfer the balance rather than paying it monthly at the current interest rate. I do my best using credit responsibly but sometimes life interrupts those plans, just trying to figure out a way to pay it off without paying tons of interest. I can most likely make a payment of $500-$600 a month.

If you never carry a balance and you pay off your bill every month, then interest rates are irrelivant. You will only be charged interest if you carry a balance on your card.

If you are in good standing with your card holder, then call them and see if you qualify for a lower interest rate.

**josephbales** · 01-12-2012, 04:24 AM

I did the same thing as the OP with Citi and only got approved for a $1200 limit. Luckily I already had a Visa from my bank with a large limit and one from Discover as well. I surfed it between the three cards until I could get it all on one card. Now just the Discover and Visa are still open with no interest for about 12 more months. I hope I can get it paid before that.

Also note that you'll have to pay a 3%-5% transfer fee on the balance. You might have better luck going to a credit union and getting a loan to pay off the balance, especially if you think you can pay it off within a year or two.

**riverwed070707** · 01-12-2012, 06:31 AM

Originally posted by tcn_321 View Post

Thank you for responding. I actually paid the 3k balance off last year. This 4k is from unexpected hospital bills. The card has a credit line of 12k and I never try to carry a balance on it or charge more than 1k in a single month. I just figured it would save me some cash trying to transfer the balance rather than paying it monthly at the current interest rate. I do my best using credit responsibly but sometimes life interrupts those plans, just trying to figure out a way to pay it off without paying tons of interest. I can most likely make a payment of $500-$600 a month.

Why would you put medical bills on a 22% interest credit card? Medical bills don't accrue interest and you can usually work out a payment plan with the facilitiy

**Brownstone** · 01-12-2012, 06:09 PM

My guess would be that OP wanted to avoid going into collections. Also, the interest rate might have been lower initially.

**DayByDay** · 01-13-2012, 10:07 AM

In my experience, hospitals and other medical providers require you to make payments large enough to have the bill paid off in 12 months. Only one provider allowed my son to pay his bill over 24 months.

**jrjan1** · 01-23-2012, 12:28 PM

tell them what you are going to do with it.

I think the people who work the phones at the credit card companies take a lot of flak unnecessarily. Tell them what you want the card for. If it's to consolidate bills of $4000, tell them that. They are just people, don't be afraid. If you have any questions, you should ask when you are on the phone with them. Tell them you will hold until they have an answer. They can check it a couple minutes. If you hang up not knowing how much you were approved for, then it's your own fault.

Balance Transfer Cards (WAS I TRICKED?)