Credit Card Balance Transfer Question

[MiamiLooker]

Regarding offers to transfer credit card balances to a card with a lower interest rate, can I transfer only up to the existing balance or can I transfer more than the balance? For example, if I have a balance of $4,000 on the old card, can I transfer $5,000 to the new one, leaving me with a credit of $1,000 on the old and a $5,000 balance on the new one?

[Vincent_Michael]

yes you can what card are you going with? Any how you can rollover ballences you just have to have the credit limit available and also the company your getting credit from must allow it (Some dont)

 

 

e-mail me

[JamesK840]

BEST way to get cash advance...

 

I discovered years ago that if I did a balance transfer to a low (or no) interest credit card from my checking account Credit Line it really had no limit to how much was actually used on the line, and even better, the transfer was just dumped straight into the checking account (though I of course used part to pay off the line)!

 

So instead of paying the 13-20% interest on the credit line, or the 20-25% interest (and other BS) on a cash advance (WHY WOULD ANYONE TAKE A CASH ADVANCE?), I got the same thing but for only the 2.5%-5% balance transfer fee (usually capped around $50 anyway) and something like 0% to 1.9% for 15 months!

 

The only caveat is with all the bank consolidations you can't transfer/pay between accounts owned by the same megalopoly. Great reason to keep a long-standing Credit Union gold or platinum card around, though there's still enough choice out there that you shouldn't have to transfer just be able to transfer again to a good deal--if you keep your credit score up.

 

Remember the transfer fees do add up though (and that multiple inquiries lower your credit score for a while), and most importantly: now the minimum payments are A LOT higher, so DON'T GO RUNNING UP THE ORIGINAL CARDS (/credit lines) AGAIN or you'll be way over your head in no time and bankruptcy isn't an option anymore!!!

 

Also remember not to close your older previous cards/credit lines, just having them open and *unused* (maybe buy a tank of gas or something once every 6 months and pay it off next bill) helps your credit so you might get that next great offer.

 

I've used these kinds of machinations to get through some periods of unemployment typical to my industry, but more recently to consolidate EVERYTHING down and pay it all off. It is a hell of a feeling! Knowing that once rent (wish it was mortgage) is paid there's just about nothing else I have to pay. Been working hard on savings with the wonderful new "extra" cash (helps that except for my brief trip to Vegas I've cut back other ahem, expensive hobbies) so next downturn I don't get so deep into debt.

[ted]

RE: BEST way to get cash advance...

 

Just be sure to read all the fine print. Many of these offers insist all payments go to pay off the transferred balance before anything goes against current charges, so you entire payment pays off the 3% balance for a couple of months and meanwhile your regular normal charges accumulate at 12 or more percent interest and you're right back where you started.

[JamesK840]

RE: BEST way to get cash advance...

 

Great point! DON'T have 'regular normal charges'. Your BALANCE TRANSFER CARD GOES IN YOUR CLOSET, not your wallet! Plus be sure to pay ALL bills on time! Late payments on an an unrelated card, over limit, etc. can jack up ALL your rates!

[doctordoctor]

how about not running up your credir card so much that you have a balance?...pay it off in full every month!...if you need to make a big purchase, save up!...credit card finance charges are a horrible rip-off...

 

I realize not all can abide by these suggestions, but it's "worth" a try...

[JamesK840]

As I was saying, if you find yourself unemployed but with good credit it can be a great temporary crutch until you get back on you feet, certainly better then those payday advance loan sharks and if you do it right even better then fully emptying your savings.

 

That said, you're generally right. Having all your debt paid off is a great sense of freedom and if you have the discipline it helps you to save for the important things in life.

 

But on the other hand, don't let being 100% anti-debt blind you to a great deal on something you need anyway. Sure, say you have the money to buy a computer, but if Best Buy or CompUSA will give it to you for 24months (or even longer) same as cash, AND YOU ARE SURE YOU understand the conditions AND WILL pay it off in time (automatic payment from checking, maybe?) you can enjoy your new computer and do something productive with the money in the meantime.

 

RothIRA at the least, maybe (they really aren't hard to start...)? That way you'd be able to get the principal back out at any time for any future emergency, no BS...