Balance Transfer From a Joint Credit Card Account?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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ck777
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Balance Transfer From a Joint Credit Card Account?

Postby ck777 » Wed Oct 26, 2011 12:40 pm

Hello,

I wanted a little advice on a situation I have encountered. I'm not too well versed with credit card balance transfers but have been reading some excellent information on the website.

Here are my details

United Chase Card
Balance: $7468
APR: 13.24%

I don't want to get into too much personal history but some background might be helpful. This is a joint credit card held with my recent ex-wife, her name is on the card. She is responsible for all of the balance (we are on excellent terms and she is taking full responsibility for the card)

Her financial situation is not very good and she is having difficulty keeping up with the minimum payments (I'm helping with that). I wanted to explore a balance transfer to a card that had 12-18 months at 0%. I'm a little nervous about her being able to qualify for one but she does want to apply.

Since I'm not too well versed with the subject, I'm not sure if there are any negative aspects of transferring the money. Are there things she needs to ask? Are there pro's/cons?

I would like to cancel the Chase card since it has both of our names but can't do that until it has a zero balance. I'm not used to having something in my name carrying such a huge balance; I always pay off my credit card immediately.

I really appreciate any advice you might have.
CK


sticf
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Postby sticf » Wed Oct 26, 2011 2:49 pm

If she can qualify for a credit card that can absorb the amount it should be easy to do the transfer. There may be a one time transfer fee. I recently opened a Chase Freedom, it has a 3% transfer fee but 0% interest for 12 months on balance transfers. This fee is usually reasonable when you compare it to 12 months of interest. Some people have posted that if you show a balance transfer during the application process you are more likely to get a credit limit to cover the transfer. I have never done it personally, so I am not sure.

Pros:
-If qualified she can save some interest.
-She can make a lower minimum payment until finances level out. Or she receives a windfall of money (end of year bonuses and the like).
-You could separate your and her financial obligations faster if the new card is in her name only.

Cons:
-If she does not pay it off in time it may cost her more in the long run (Transfer fee + Interest).
-She may not qualify for a large enough limit to cover balance.

BTW, you can cancel the Chase card even before it has $0 balance. You will still owe the money but Chase will freeze the account so no new charges will appear. Being on good terms can take some of the trust issues out of the equation but in my mind nothing gives peace of mind like "the law" (or a Court Order). I know I have trust issues, but money makes people crazy sometimes. :)

ck777
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Postby ck777 » Wed Oct 26, 2011 3:27 pm

Sticf,

Thank you so much for the reply. This is tremendously helpful. My big motivation is to get the amount off my credit report and more separation of finances. That is why I was thinking of the balance transfer to a card in only her name and so she can save on the interest charges.

I would cover the transfer costs; that doesn't bother me. I'm a little doubtful she will qualify for a card but will have her give it a shot.

I'm a little nervous about canceling the credit card with a balance and it effecting my credit rating, but if she doesn't qualify for the card it might be the best course of action.

Thanks again!
CK

DavidNY
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Postby DavidNY » Thu Oct 27, 2011 2:12 pm

Citibank Platinum Select MC offers a 0% BT for 21 months.

https://creditcards.citi.com/credit-cards/citi-platinum-select-mastercard/

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Pete838
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Postby Pete838 » Mon Oct 31, 2011 9:17 am

Citibank Platinum Select MC offers a 0% BT for 21 months.

https://creditcards.citi.com/credit-...ct-mastercard/
I just signed up for this card (Citi Platinum Select) to take advantage of the balance transfer. There is a surcharge of 3%, but a one time 3% whack then over a year interest free is a bargain. Just remember to make the payment on time or the intro APR can go away, even if you're only a day late due to the mailman. I always set mine up to auto-pay the minimum just in case.

I would definitely be nervous about continuing to share an active credit card with her if she is unable to secure her own credit cards. You know more than we about how her credit became tarnished to begin with. Friends or not, you're on the hook if she defaults.
Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.
Ronald Reagan

ck777
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Postby ck777 » Mon Oct 31, 2011 10:30 am

I want to thank everyone for taking the time to answer my questions; it has been so helpful. The CITI card looks to be great for the situation and I'll have her apply.

Actually, her credit is excellent. She just doesn't have a whole lot of income coming in.

Thanks so much! CK

ck777
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Postby ck777 » Wed Mar 21, 2012 3:12 pm

Hello All,

Sorry about bringing up an old thread from many months ago. Moderators, feel free to remove or suggest I start another thread.

It turns out that she did not qualify for the CITI card and was denied. I'm not sure what her credit score is but I don't think it is as good as I thought.

I've attempted to have my name removed from the account, but Chase has just denied that request.

The balance is still about the same from my first post.

I still would like to explore a balance transfer but I don't want her applying to a bunch of credit card company's and her credit rating go further down. Are there any recommendations for company's that might except a slightly lower then stellar credit rating?

I appreciate any ideas
CK



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