Using a balance transfer offer to pay on the same card's balance?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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Kamakzie
 
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Using a balance transfer offer to pay on the same card's balance?

Postby Kamakzie » Thu Jun 05, 2014 12:44 am

I called Citi one day seeking a lower purchase APR. At the time there was no longer term lower rate so they gave me a 6 month promo APR of 9.9%. The CSR also mentioned that I could get a 0% Balance transfer rate and only pay some 3% transfer fee and have it sent to my bank account. So if I got like say $14K I would also pay a 3% fee once I got the funds in my checking account he said to turn around and pay it back on the card and it would be at the 0% rate for 12 months. Has anyone tried this? I'm afraid that it would pay off the 0% promo rate and I'd add that 3% transfer fee for nothing. My 9.9% rate is about to expire and go back to 13.24.

Thanks!


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kcm7
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Postby kcm7 » Fri Jun 13, 2014 9:45 am

Kamakzie wrote:So if I got like say $14K I would also pay a 3% fee once I got the funds in my checking account he said to turn around and pay it back on the card and it would be at the 0% rate for 12 months.


Replying to bump this because I'm curious to see if anyone has any answers. Also, maybe it's just because I'm ignorant about balance transfers, but what exactly is meant by the stuff I quoted above? My understanding is that, when you do a balance transfer, you apply for a new card w/ a 0% dealy and get approved for a limit. Then you get a balance transfer check to pay off the old card, right? When I start to think about the concept of the bank giving you money to pay off your card and then that money goes on the same card, my head starts hurting.

tl;dr I'm confused (probably because I don't really know much a/b balance transfers), but also curious about how other people who know more might answer your question. So I am replying with a useless reply to bump your post.
Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG

Kamakzie
 
Posts: 2
Joined: Thu Jun 05, 2014 12:30 am
Location: Michigan

Postby Kamakzie » Fri Jun 13, 2014 11:22 am

Thanks for the bump as I'd really like to know if anyone has tried this.

takeshi
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Postby takeshi » Sat Jun 14, 2014 10:29 pm

kcm7 wrote:My understanding is that, when you do a balance transfer, you apply for a new card w/ a 0% dealy and get approved for a limit.

Balance transfers and new cards aren't mutually inclusive. One can BT to an existing card. One can BT to a card without a 0% offer. Balance transfer only means that all or part of the balance is transferred from one account to another.

kcm7 wrote:Then you get a balance transfer check to pay off the old card, right?

BT's can be electronic as well.

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kcm7
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Postby kcm7 » Wed Jun 18, 2014 5:18 pm

Good to know!

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Cards:

-Capital One Quicksilver
-Barclaycard Arrival (no AF)
- US Bank (no rewards)
-IHG



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