Thinking of transferring a credit card balance...

[disneygoof]

...what are the consequences? Is the company I'm transferring from likely to reduce my limit or close my account?

Thanks in advance.

 

[sweetdana]

Usually there is a 3% fee. Unless you are saving more than that on perm interest rate, not the intro rate you pay more.
Not likely as long as you keep paying interest... they will keep letting you charge. they might reduce your limit, if you go a period of time without spending anything.

 

[goodeats]

Usually there is a 3% fee. Unless you are saving more than that on perm interest rate, not the intro rate you pay more.
Not likely as long as you keep paying interest... they will keep letting you charge. they might reduce your limit, if you go a period of time without spending anything.

Discover sent us a no fee 0% balance transfer offer, so they do exist. I think they are rare though. We had an old Citibank card that we stopped using because we switched to a rewards card. Citibank ended up closing the account.

 

[LuLuO]

The company you're transferring from won't close your account. Instead they'll probably send you convenience checks in the mail.

 

[leelee9878]

Check the chase slate card, I did 0% transfer no fee with them. My Citicard hasn't closed, or reduced the limit.

 

[DawnM]

I am surprised people have had CC accounts closed. I have CCs I haven't used in years and not only do they not close them, they argue with me when I call to close them and try to get me to stay.

Dawn

 

[mikehn]

I think the answer might be different here for everyone and it might have to do with ones credit score. For me, no credit card company has ever closed an account just because it has a zero balance. I do believe a few department stores have closed my credit accounts because there was no activity for years.

 

[seashoreCM]

Warning!

If the destination credit card already has a balance or you keep using it for other things then the other things will continue to exist and rack up interest at a higher rate until the "balance transfer" has been paid off.

You will not be able to pay off the other things first. (some rare exceptions)

In addition the low or zero interest rate on the balance transfer (usually) lasts only for a few months.

 

[zippingalong]

Warning!

If the destination credit card already has a balance or you keep using it for other things then the other things will continue to exist and rack up interest at a higher rate until the "balance transfer" has been paid off.

You will not be able to pay off the other things first. (some rare exceptions)

In addition the low or zero interest rate on the balance transfer (usually) lasts only for a few months.

Actually, when credit card reform went into effect, this changed.

Any amount of $$ paid *above* the minimum payment goes on the special APR rate. So if you owe $3000 and your minimum payment is $50 and you pay $300, the $50 goes towards your regular rate and $250 goes to the special financing.