Should I Use A 0% Balance Transfer Check To Give Myself Money To Invest?

From Credit Forum:

should I use a 0% balance transfer check to give myself money to invest? I have no credit card debt and am very stable financially. One of my credit cards has over a $24,000 credit limit. This credit card has just sent me 0% balance transfer checks. The maximum fee for using these checks is $75 and the 0% deal is until Dec 2007. Should I write one of these checks to myself for $24,000 and keep that money in a 5.05% CD for 9 months? I am confident I can make the minimum monthly payments without problems. I also have other credit cards I use normally (and pay off every month) so I don't have to rely on this one for anything. Does this hurt my credit in any way?

Answer: A balance transfer check is for a balance transfer not a cash advance. A balance transfer would be used to transfer the balance from another credit card to this new card. Usually credit card companies are not so lenient with cash advances.

How Do Balance Transfers Work On Credit Cards?

From Personal Finance Forum:

How do balance transfers work on credit cards? Currently i'm paying an average of £43 per month in interest on my main credit card, on a £3.500 debt. I'm looking to transfer this debt onto a 0% balance transfer card.

Answer: Credit card balance transfer is one of the preferred ways to get rid of credit card debt and is used by many people to get immediate relief. Credit card balance transfer essentially means that we transfer our outstanding balances from a high APR credit card to a credit card which offers low APR's. A 0% Intro APR credit card is the preferred credit card to transfer balances, but because of the widespread misuse of such credit card offers, credit card companies have withdrawn all such offers. Indeed balance transfer saves a lot of money and can save things from going worse, but many people simply don't know the right way to do balance transfer. This article takes a look at the correct process to initiate and complete the balance transfer. The first thing to look out, when a person wants to transfer his balances is a credit card which offers the lowest APR rates and lowest balance transfer fees. Many on line credit card companies offer credit card comparisons. It is indeed a good practice to search for the credit cards using their services and decide on a credit card which offers the maximum savings. It is important to note here that balance transfer AP Rs depend on a person's credit history. If the credit card in question offers the lowest rates, it is definitely for those with the best credit ratings. There are different balance transfer apr's for people with lower credit ratings. So, it becomes imperative that one chooses the credit card which offers the lowest APR and balance transfer fees for his credit ratings. When you decide for a balance transfer it doesn't mean that your obligation for payments towards your outstanding balances with the existing credit card company cease to exist. You will have to pay the credit card company all the monthly payments. One way you can save money is to just send the monthly minimum payments to the existing credit card company. This way you won't default and invite penalty. The next step is to sign up with the credit card which you sought for transferring your balances, and fill up the balance transfer application. Read more from: http://www.credit-card-gallery.com/article/414,The_right_way_to_credit_card_balance_transfers

How Much Do I Have To Pay Back Each Month On A Credit Card?

From Credit Forum:

How much do I have to pay back each month on a credit card? I have not had one before so don't know how it works. I was wanting to get one because of the 0% balance transfer fees although there is a small (3%) admin fee for these transfers, I thought it could be cheaper for my circumstances than getting a loan. If I was to transfer £1,000 into my bank account from the credit card, would I have to pay that all back at the end f the month? Or does it work in instalments?

Answer: Most balance transfers work just like normal credit cards, meaning once the balance is transferred, you'll have to make minimum payments. However, most credit card issuers that accept balance transfers ask that you pay a little more each month. So instead of paying say 2% of the balance each month, you may be required to pay 2% + $40 each month... The idea is that you actually pay off the debt, instead of simply transferring it over and over with no meaningful payoff. That said, it's not all due in a month or in installments, just paid off normally like a standard credit card balance.

What Credit Cards Are Best For Balance Transfers?

From Personal Finance Forum:

What credit cards are best for balance transfers? I'm carrying a $3500 balance with 22% APR and keep hearing about 0% balance transfer. I did research and noticed they charge a fee, which I am hoping to avoid. Anyway, can anyone make suggestions?

Answer: This is a good plan if the 0% APR will last you until you can pay off the entire balance. Usually, with 0% APR teaser rates, the APR ends up re-adjusting to a higher amount after 3-6 months. So far the best deal I have seen is American Express' Blue card that offers 12 months of 0% APR. But, there is an annual fee for this card, which takes away some of the benefit of transferring the balance. When looking at the economics of a balance transfer, you have to know how long it will take you to pay off the balance in order to see if it makes financial sense. you may be better off transferring your balance to a low fixed rate APR, like Capital One offers. Even though it isn't 0%, it is fixed for the life of the balance, so you don't risk ending up in the same high APR situation all over again. Also, make sure not to charge anything additional on that card since you begin paying interest on additional charges immediately.

Is It Safe To Accept A Credit Card Offer From Warm Now?

From Credit Forum:

Is it safe to accept a credit card offer from Warm now? I just received an offer for 0% balance transferred until January 2010. Is it safe or "smart" for me to accept their offer knowing that they have been bought by JP Morgan Chase? Have you did it recently, and what are your experiences? Thanks!

Answer: I don't see a problem. The credit card division will continue to operate as Warm or be merged into somebody else's operation. Either way, they're not going to just disappear. You're not sending them any money in advance, so there's no risk to you.

Question About Canceling A Credit Cared And Its Effect On My Credit Score?

From Credit Forum:

Question about canceling a credit cared and its effect on my credit score? I have a credit card with a $12000 limit. I did a 0% balance transfer on it in late 2006 and the 0% is valid till June 2008. I will still have some money left to pay off by June 08, can I transfer this to a new card with 0% and cancel my current card? Will this affect my credit score if the new limit is the same as the current limt? my oldest CC is different and I still have that (from 2003). Thanks

Answer: You would be better to continue to pay off the debt on the current card as much as you can until May 2008. Credit bureaus 'get' balance transfers and they may have a negative impact on your score, because their will be and inquiry. Flipping credit eventually catches up to you. If you have to roll it into another card, wait until April or May when you have paid off more of the debt. Then keep that card open as it shows a good payment history (I guess). You might want to check out options for debt settlement if you are getting to a point where you can't pay the monthly plus.

If I Transfer £3000 To A New Credit Card Why Do I Need To Pay Off My Old One With The New One?

From Personal Finance Forum:

if I transfer £3000 to a new credit card why do I need to pay off my old one with the new one? I asked to transfer £3000 on a 0% balance transfer. They have given me a £6600 credit card with a balance left of £3600 left on it and have said I need to use that to pay off my old card. That just puts me in more debt. Cab I get out of this or is it too late?

Answer: Where did the 3000 go? Typically with a balance transfer, I think it goes directly to the old card to pay off the balance of that one - so you don't end up with more debt, you just owe the existing debt to a different company. Did they send you the 3000? If so, then you should use that to pay off the old card or then you will have more debt (and more interest charges that will make it even worse). If you did not get the money, then you should check the balance of the old card to make sure the balance of that has been reduced by 3000. If it hasn't, I would call one or both companies to find out why it hasn't. I don't think it should take more than a few days for the balance on the old card to be reduced by the transferred amount.

For Getting A New Travel Reward Credit Card, Can I Use My Existing 0 Apr Credit Card?

From Credit Forum:

For getting a new travel reward credit card, Can I use my existing 0 APR credit card? I already have a 0 APR credit card with no annual fees and 0 balance transfers. Now I heard about travel reward card and want to apply for it.For getting a new travel reward credit card, Can I use my existing 0 APR credit card?

Answer: You would have to ask someone at the credit card company if you are able to have the benefits of both types of cards. The answer is probably "no", but it doesn't hurt to ask.

Do You Know Any Credit Card Company Which Provides A Travel Reward Card With Great Benefits?

From Credit Forum:

Do you know any credit card company which provides a travel reward card with great benefits? I already have a 0 APR credit card with no annual fees and 0 balance transfers. Now I heard about travel reward card and want to apply for it. Do you know any credit card company which provides a travel reward card with great benefits?

Answer: Throughout the month of May, American Express Gold Delta Sky Miles Business Credit Card is offering special bonus points. The MBNA-American Express partnership will likely be a great boost for American Express, but consumer watchdogs are hoping customers will reap something more than a Bongo University American Express card. you can get more information about travel card from: http://www.card-gallery.com/American_Express.html

Can'T Make Credit Card Payments, How Does It Affect Credit Score?

From Credit Forum:

Can't make credit card payments, how does it affect credit score? My 0% balance transfer offer expired and now I can't make the minimum monthly payments. I'm going to need to arrange for a payment plan with Citibank, however they said that it will affect my credit score. Does anyone how badly a specialized payment plan with a credit card company will negatively affect my credit score? Is there a specific amount of points my score will go down?

Answer: EVERY month you can't make a payment- your Credit Score will take a 100 Point hit !! :( So You need to do whatever it TAKES- to keep those Payments up... CZ if You DON'T, you may not be able to get a Loan, or another Credit Card- for a VERY Long time ! :o

Answers are provided by students, volunteers, and random strangers. We have roughly checked them for grammar, and punctuation, not for accuracy, do not make any life threatening, or financial decisions based on this information. The questions are generated by people using search, so the most common questions are likely to appear for a term.

News Meme