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17

Typically you can use credit card balance transfers to consolidate some, or all, of your other loan balances in one place. The interest rate might be lower. Some prefer to make one payment rather than multiple payments. There is typically a fee that is imposed by the card that is originating or creating the loan. This would be the credit card you are ...


11

You should check the details of those balance transfers - they typically have a 3 to 5 % 'one-time fee', which means you pay nearly a year's interest right away. And then every time you transfer the total on again. Also, this fee gets added to the credit card total, and it is possibly considered paid last (after you paid off the completed transferred ...


11

Since you are not paying the full balance off each month you are carrying a balance from month to month. That balance is being charged some interest rate X. With a balance transfer, the new credit card pays off that balance. As a result you now have a balance of the same amount (plus any processing charges) on the new credit card. Hence the balance has ...


9

TL;DR summary: 0% balance transfer offers and "free checks usable anywhere" rarely are a good deal for the customer. 0% rate balance transfer offers (and the checks usable anywhere including payment of taxes) come with a transaction fee because the credit card company is paying off the balance on the other card (or the tax or the electric bill) in the ...


9

You are misunderstanding the answer. Suppose that you are in the habit of paying off the total balance due shown as due on your most recent monthly statement in timely fashion (meaning on or before the due date). You use the 0% rate balance transfer offer with 0% fee to pay off $500 on another credit card, and also make a $100 purchase in the current ...


8

The pitfalls are: not paying it off during the so-called 0% time limit, and accumulating more debt in the meantime. the balance transfer is rarely 'free', it's common to have a 3% fee/$25 minimum once a balance transfer offer has been accepted, the account becomes a revolving charge account and the "grace period" during which new charges don't get charged ...


7

It really depends on the exact wording of that zero rate offer. Some specifically state they are to be used for paying other debt. Others will have wording such as "pay other debt or write yourself a check to pay for that next vacation, or new furniture." Sorry, it's back on you to check this out in advance.


6

This is what your car loan would look like if you paid it off in 14 months at the existing 2.94% rate: Principal Interest Payment $15,000.00 $36.75 -$1,091.22 $13,945.53 $34.17 -$1,091.22 $12,888.48 $31.58 -$1,091.22 $11,828.83 $28.98 -$1,091.22 $10,766.59 $26.38 -$1,091.22 $9,701.75 $23....


5

I have a few 0% APR Balance Transfer cards. Here is what happens on mine--does not imply the same for you. But hopefully it will help you understand your contract. My interpretation of the phrase is that they are going to calculate the interest you owe and place it in a hidden 'bucket' if you will. This 'bucket' of interest charges is only applied if your '...


5

Note: the question is tagged united kingdom, this is a UK focussed answer practices elsewhere may be different). A balance transfer moves your debt from one credit card to another. This can be a good way to get a debt onto a lower (often zero) interest rate. There will usually be a transfer fee but with a good balance transfer deal the effective interest ...


4

There is nothing called free lunch. The 2% fee indirectly covers the cost of funds and in effect would be a personal loan. Further the repayment period would typically be 3 months and roughly would translate into 7-9% loan depending of repayment schedule etc. There is no harm in trying to get the fee waived, however one thing can lead to another and they ...


4

Generally, in the US, you have 25 days after the date of the monthly statement to make a payment. If each month you pay the amount stated as the Balance Due within this 25-day window, then the purchases that you make after the monthly statement date are not charged interest. As soon as you pay less that the full amount due, this interest-free period ...


4

Background I wasn't able to answer my question from searching Money.SE by balance amount subject interest calculation apr—admittedly, I probably didn't know enough (or have enough context) to click the right links—but given that, most questions I found were about general APR calculations and certain nuances such as accounting for grace periods. ...


4

To answer your question as clarified in a comment: All I wanted to know what will happen if I enter my debit card number in the sixteen digit account number they offer on the application for balance transfer. That's all. Almost certainly (subject to the particular terms and conditions of the offer), no money will move, the only question is exactly when ...


4

A balance transfer is paying one debt instrument with another. While this is typically seen in credit card offers it isn't necessarily confined to credit cards. Obviously the only reason to do this is refinancing debt to a lower interest rate. You need to watch for loads on the incoming money, there may be an upwards of 5% fee. This calculation is ...


4

It is kind of standard practice, and the way you are proposing you should be just fine provided nothing goes wrong. As I understand it, you will get a new 0% card and charge this large purchase on it. Many get into trouble when something does go wrong such as missing the end of the zero percent, or missing a payment. Anything of those kind of situation ...


4

They immediately make money by charging you the initial 2.39% fee. In the long term they make money because a surprisingly large number of customers don't pay the balance off, or otherwise violate the terms of the offer, so that the 18.95% rate applies. And sometimes, depending on card policies, they make money when the consumer makes new purchases on ...


4

The implied intent is that balance transfers are for your balances, not someone else's. However, I bet it would be not only allowed but also encouraged. Why? Because the goal of a teaser rate is to get you to borrow. Typically there is a balance transfer fee that allows the offering company to break even. In the unlikely event that a person does pay off ...


4

A balance transfer is used to transfer an outstanding balance from one credit card to another. Or to put it another way, you are using one credit card to pay off the other. In your case, you could only transfer one way - use the card with $3680 credit limit remaining to pay off the card on which you owe $341. The other way would instantly take you over ...


3

You need to pay off the entire balance of 7450 as soon as possible. This should be your primary financial goal at this point above anything else. A basic structure that you can follow is this: Evaluate your income. It needs to increase, and you seem to agree that it can. Cut expenses. Then cut more. You need to put all your expenses under a harsh light. If ...


3

Moving $15,000 from 8.25% to 0% and paying it off in 15 months will save you about $840 in interest. However, there are a few things to watch out for in order for this scheme to work: If you don't pay off all $15k by the time your 0% promotional rate is done, the interest rate will certainly skyrocket to something higher than the 8.25% you are currently ...


3

I used to work for a major US-based credit card company (CapitalOne) like 4 or 5 years ago as an outsourced agent. The way it works (or it used to, I don't think it has changed tho) is if you have a balance transfer segment (even if it's 0% APR), it will cancel what is called "the grace period", during which you won't accrue interest on new purchases if ...


3

To expand on @JoeTaxpayer's answer, the devil is actually in the fine print. All the "credit-card checks" that I have ever received in the mail explicitly says that the checks cannot be used to pay off (or pay down) the balance on any other credit card issued by the same bank, whether the card is branded with the bank logo or is branded with a department-...


3

You owe $10k at 18% and borrow an additional $10k at 0. When you pay back $10k, they are likely to apply it to the zero rate money and you are out 2%. Your question has merit, but as others say, the devil is I'm the details. You should read the fine print. My credit card checks forbid drawing a check payable to myself. I need to pay another account, in my ...


3

Any such amount has to be reported by Skrill and the Bank to RBI. As long as your earnings are legitimate and you are paying the taxes you shouldn't be worried. If its for services rendered, you would have a contract and / or invoice ... ie some paper work. It is important to keep the paper work in order.


3

Transferring the balance of a credit card is what they call moving your debt from one credit card to another credit card or loan. A debit card, however, is not debt. It is a card that is tied to a checking account with money in it. You can't transfer debt to your checking account. If you have enough money in your checking account to cover the balance of ...


3

From the card issuer's point of view, the purpose of balance transfers is very simple. A credit card company wants you to owe them more money, so they will make more profit getting more interest payments from you. To do that, they will offer an (apparently) good deal to transfer the debt that you owe to other companies onto their card. The deal may ...


3

If you read a bit on this site you will see warnings about closing accounts. Yes, what you propose to do can work, as long as your timing is right, and you watch your score. You get a minor ding for pulls to your report (credit inquiries), for high utilization, and for low average account age. For your goals, you should only get cards that have no annual ...


3

Yes. That's typical. When money is outstanding via cash advance/transfer you lose the grace period for new purchases. The minimum payment on the cash advance is still due and is credited first. Any further funds are credited to the new purchase. Keep in mind, there's nothing magic about waiting for the bill cycle. You can make an extra payment as soon as ...


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