Balance Transfers-give me the skinny!

[FairestOfThemAll37]

Ok budget boarders who seem to know everything about CCs and interest etc., please give me the low down on balance transfers.

I've gotten a ton (I have zero idea what triggered these all at once) of offers for 0% interest for x months on balance transfers.

I would mainly be transferring somebody else's debt to me. I know the risks of this and how it impacts my responsibility and am comfortable with that.

I also had a rather large tax bill due to last minute unforeseen things so rather than pull from my short term savings, I'd love to pay on cc and then pay off monthly for a bit.

From what I understand there is a 3% transfer fee and then I should "freeze" those cards because taking advantage of the 0% offer means you lose your grace period on new purchases.

Is there anything else I'm missing here? TIA

 

[Marionnette]

Ok budget boarders who seem to know everything about CCs and interest etc., please give me the low down on balance transfers.

I've gotten a ton (I have zero idea what triggered these all at once) of offers for 0% interest for x months on balance transfers.

I would mainly be transferring somebody else's debt to me. I know the risks of this and how it impacts my responsibility and am comfortable with that.

I also had a rather large tax bill due to last minute unforeseen things so rather than pull from my short term savings, I'd love to pay on cc and then pay off monthly for a bit.

From what I understand there is a 3% transfer fee and then I should "freeze" those cards because taking advantage of the 0% offer means you lose your grace period on new purchases.

Is there anything else I'm missing here? TIA

Balance transfers and their fees cannot add up to more than your available credit on the account.
You will need to make the minimum payment each month, even if the offer is at 0% and you never make another purchase with that CC during the promotional period.
The promotional period will be to the exact day stated on your statement. It may be in the middle of your billing period. Don't wait for the next statement to generate. You need to have the entire amount paid off by that date or else you accrue interest.
PAY ON TIME! Paying late can cause you to lose that promotional rate early.
If you fail to pay the full amount off by the time that the promotional period expires, you will begin paying interest on the balance immediately.

As far as taking on someone else's debt, well I'm sure that you know it is never a good idea, no matter how much you trust the other person. From the moment that you use a balance transfer to pay off that person's debt, it becomes yours. So, if you move forward with the plan it is essential that you regard that debt as yours. If the other person is paying you a set amount each month in order to offset their debt, assume that those payments will stop at some point. Then ask yourself whether you can handle paying off the debt all on your own and how it will affect your relationship with that person going forward. The financial responsibility is not the only factor to consider.

 

[CalDisneyMomof2]

I believe Slate (Chase) is the only card (that I know of) that has 0 balance transfer fees. And most offers that I have seen are 0% interest for 15 months also. There are no additional perks/bonuses but if you're trying to pay off debt with no interest or fees, I would look into that card.

 

[PerfessorZ]

While not as good as the Slate offer, I received a Chase Freedom offer for only 2% in transfer fees and 0% interest for around 15-18 months. If you already have a CF, that might be better than applying for a new card just for a balance transfer.

You are completely correct in that once you do the transfer, you need to lock that card away until your balance is paid off or you'll rack up tons of interest on the purchases you make with it.

 

[FairestOfThemAll37]

I believe Slate (Chase) is the only card (that I know of) that has 0 balance transfer fees. And most offers that I have seen are 0% interest for 15 months also. There are no additional perks/bonuses but if you're trying to pay off debt with no interest or fees, I would look into that card.

While not as good as the Slate offer, I received a Chase Freedom offer for only 2% in transfer fees and 0% interest for around 15-18 months. If you already have a CF, that might be better than applying for a new card just for a balance transfer.

You are completely correct in that once you do the transfer, you need to lock that card away until your balance is paid off or you'll rack up tons of interest on the purchases you make with it.

Thanks for the suggestions, unfortunately I don't have either of these cards and Chase won't give me any more cards.

 

[FairestOfThemAll37]

Balance transfers and their fees cannot add up to more than your available credit on the account.
You will need to make the minimum payment each month, even if the offer is at 0% and you never make another purchase with that CC during the promotional period.
The promotional period will be to the exact day stated on your statement. It may be in the middle of your billing period. Don't wait for the next statement to generate. You need to have the entire amount paid off by that date or else you accrue interest.
PAY ON TIME! Paying late can cause you to lose that promotional rate early.
If you fail to pay the full amount off by the time that the promotional period expires, you will begin paying interest on the balance immediately.

As far as taking on someone else's debt, well I'm sure that you know it is never a good idea, no matter how much you trust the other person. From the moment that you use a balance transfer to pay off that person's debt, it becomes yours. So, if you move forward with the plan it is essential that you regard that debt as yours. If the other person is paying you a set amount each month in order to offset their debt, assume that those payments will stop at some point. Then ask yourself whether you can handle paying off the debt all on your own and how it will affect your relationship with that person going forward. The financial responsibility is not the only factor to consider.

Thanks for the detailed info. It's pretty much as I thought so that's good.

 

[barkley]

you can often times do better with a credit union issued card. they may not offer a zero/6 month deal, but in the long run their deals are better.

as an example (the credit union I belong to)-0 fees for balance transfer, 1.9% for the first 13 months and as low as 7.99% after that. when I looked up the chase offer the best they will do is 13.24% after the introductory period.

unless a line of credit is going to paid IN FULL within the zero/x number of months then I feel it's best to look into the long term costs.

 

[seashoreCM]

Caution: On some balance transfers, if you don't finish paying off the entire balance by a certain date, you will have to pay higher interest retroactive to when you started the balance transfer. Read the fine print and details.

If the promotional period is less than six months, it might not be worth your while to do it and then have to shop around for another balance transfer plan to switch it to after about five months. You will have to size up the terms, such as how much of a transfer fee you would have to pay each time.

Disney hints: http://www.cockam.com/disney.htm