how does paying off multiple balance transfers for 0% work?

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joD
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how does paying off multiple balance transfers for 0% work?

Postby joD » Tue Dec 08, 2015 9:08 pm

I currently have a $3,000 0% until 6/16 balance transfer on my Barclay card and that's it, I just pay the monthly payment, I have another offer for 0% until 2/17 for 1% transfer fee from Barclay that I would like to use on my Bank of America balance that is due of $7,000. I will have the $3,000 to pay the initial transfer off by 6/23 to avoid any fees but will Barclay apply that $3,000 there?

Thanks for any help


yfan
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Re: how does paying off multiple balance transfers for 0% work?

Postby yfan » Tue Dec 08, 2015 11:52 pm

Apply the $3000 where? If you pay it off by the end of the 0% promo period, you won't have to pay interest. But if you don't, interest will apply retroactively on the remaining balance from the point the expenses were made/BT was made.

Btw, why are you constantly transferring balances? Even 1% interest is interest, plus there's the BT fee.

kdm31091
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Re: how does paying off multiple balance transfers for 0% work?

Postby kdm31091 » Wed Dec 09, 2015 7:49 am

yfan wrote:Apply the $3000 where? If you pay it off by the end of the 0% promo period, you won't have to pay interest. But if you don't, interest will apply retroactively on the remaining balance from the point the expenses were made/BT was made.

Btw, why are you constantly transferring balances? Even 1% interest is interest, plus there's the BT fee.


Right. BTs are basically a bandaid, not a solution to the actual problem. We don't know why OP is doing this, but certainly shuffling debt around doesn't tend to accomplish much (and you keep paying the fee, as yfan mentioned).

It sounds like - if I'm reading this right - OP has two balances, one for 3k one for 7k. 10k in debt is certainly significant for anyone.

I would try my hardest to get the balances down or gone before the 0% ends to hopefully avoid having to BT again. 3% every time adds up.

takeshi
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Re: how does paying off multiple balance transfers for 0% work?

Postby takeshi » Wed Dec 09, 2015 7:59 am

joD wrote:I currently have a $3,000 0% until 6/16 balance transfer on my Barclay card and that's it, I just pay the monthly payment, I have another offer for 0% until 2/17 for 1% transfer fee from Barclay that I would like to use on my Bank of America balance that is due of $7,000.

What's the limit on the Barclay card? Keep in mind that revolving utilization matters regardless of 0% offers. If you're going to take a long time to pay it down then be very careful as you're running the risk of adverse action depending on how high and how long your utilization is high.

As for how it works, read your terms. Creditors provide such info in their terms. If the terms aren't clear to you then call and clarify.

rockyrock
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Re: how does paying off multiple balance transfers for 0% work?

Postby rockyrock » Wed Dec 09, 2015 8:58 am

+1 on what takeshi said. The others mis-read your post so I'd ignore that advice.

All offers are different and even within the same issuer you can get vastly different terms. It's important to know what the original terms are and how they are affected by new purchases/transfers. The best way to do that is to call and get clarification by explaining what you want to do.

After you find out if the offer is stack-able, you will want to know how your payments will be applied. This could have the biggest impact of you being able to pay off the first one on time.

Those are pretty good terms overall and you would likely save money on interest if you are currently pay the standard rate for the other card. What takeshi said is serious though, having a high utilization will impact your credit for as long as it is being reported high. If your goal is to pay down the debt and you can handle the score hit for a year or longer this may be a good option.

As always, YMMV. Good luck.
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joD
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Re: how does paying off multiple balance transfers for 0% work?

Postby joD » Wed Dec 09, 2015 4:42 pm

kdm31091 wrote:
yfan wrote:Apply the $3000 where? If you pay it off by the end of the 0% promo period, you won't have to pay interest. But if you don't, interest will apply retroactively on the remaining balance from the point the expenses were made/BT was made.

Btw, why are you constantly transferring balances? Even 1% interest is interest, plus there's the BT fee.


Right. BTs are basically a bandaid, not a solution to the actual problem. We don't know why OP is doing this, but certainly shuffling debt around doesn't tend to accomplish much (and you keep paying the fee, as yfan mentioned).

It sounds like - if I'm reading this right - OP has two balances, one for 3k one for 7k. 10k in debt is certainly significant for anyone.

I would try my hardest to get the balances down or gone before the 0% ends to hopefully avoid having to BT again. 3% every time adds up.


Basically I used Cash, refinanced my car and used some credit cards to buy a house and do the renovation, we are paying the credit cards and have not had to pay any interest. 785 is my FICO credit score atm. You are right on how your reading it, in June when the 3,000's 0% ends I will be able to pay that off and let the $7,000 stay 0% until feb and then pay some of that off and transfer anything left. I just need to know how they apply my payment and if thy won't apply it to the 1st 0% BT, is there a way to circumvent that? Like wait until the day after my 0% ends and then they would have to apply my payment to the amount that is actually being charged interest? I don't know how all this stuff works, that's why I am here to ask questions.

The barclay card is 0% for 12 months with a 1% transfer fee, So isn't that better than any loan?

joD
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Re: how does paying off multiple balance transfers for 0% work?

Postby joD » Wed Dec 09, 2015 9:11 pm

Here is Barclay's response:


Thank you for contacting us regarding your Barclaycard Rewards Visa Signature Card. We can certainly address your inquiry regarding the balance transfer on your account.

We are pleased to inform you that your account is eligible for a 0% Promotional APR on balance transfers until feb 01, 2017. This offer has a transaction fee of 1% of the amount of each transaction, not less than $5.00 no maximum fee. To avail of this offer, the balance transfer should be processed on or before February 01, 2016.

As an added convenience, you may review any promotional balance transfer offers and transfer a balance on the website. To do so, select the 'Account settings' link. On this page, you will see the balance transfer offers on your account just under the 'Balance transfer offers' heading. To verify the status of any balance transfer submitted click on 'See history' to the right of the 'Balance transfer offers' heading.

Please also know that any amount paid above the minimum payment each month is applied to your highest Annual Percentage Rate (APR) first, until each APR balance is paid. Based on the Credit Card Act, if there are multiple balances at the same interest rate we can treat them as one balance and apply the payments in the matter that we determine, as long as the amount in excess of the minimum payment amount due are being applied to the highest rates first. Please keep in mind that the “promotional balance” referred to in the minimum payment allocation refers to promotional balances with an interest rate or with deferred interest. All 0% promotions will only be paid once all of the purchases have been paid. We apologize for any inconvenience this may cause.

We deeply value your business and appreciate the trust you have placed in us. We are looking forward to catering your future financial needs! If you have any other questions or concerns, please reply to this message.

Sincerely,

Customer Care


It looks like they could apply anything I pay towards the 2nd BT instead of the 1st. Both BTs are 0% for 12 months and 13.99 % after.


So see if you can come up with an answer for this one. 1st 0% BT FOR $3,000 ends 6/23/16 2nd 0% BT FOR $7000 ends 2/1/17 both are 13.99% after 12 mo , if on 6/24/16 I pay $3,000 would they have to apply it to the $3,000 balance because it is now 13.99% and the other transfer is 0% at that time? And if I can do that, what interest would I have to pay?

Vermonster
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Re: how does paying off multiple balance transfers for 0% work?

Postby Vermonster » Thu Dec 10, 2015 9:13 am

joD wrote:So see if you can come up with an answer for this one. 1st 0% BT FOR $3,000 ends 6/23/16 2nd 0% BT FOR $7000 ends 2/1/17 both are 13.99% after 12 mo , if on 6/24/16 I pay $3,000 would they have to apply it to the $3,000 balance because it is now 13.99% and the other transfer is 0% at that time? And if I can do that, what interest would I have to pay?


In that case yes. Interest is going to be calculated based on when your statement cuts. If it cuts the 23rd then you should have one month to pay it off without interest. Future charges after the 23rd will incur interest at then end of the next statement.

Any payments made before that can technically be applied to either the $3k or $7k as they are both 0%/13.99%. I have heard with certain cards that you need to pay the minimum, then call to make a separate payment if you want it to apply directly to a specific balance.
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