Originally Posted by robertw477
They just offered me a rate of 1.9% transfer to the citi aa card until paid with no cost transfer. That is a super deal. I might take them up on that one.
Rob
You realize that either (a) you'll earn no miles until that is paid off, or (b) you'll pay way more than 1.9%?
That's because all the credit card companies have a clause that they can apply payments in any order they wish, and in fact they always apply payments to the lowest interest rate part of your balance first.
So if your normal interest rate on purchases is XX.99%, and you haven't paid off your purchases in full before you did the balance transfer and/or you keep making purchases ("to earn miles") while you have the balance transfer on the same account, any monthly payments you make will reduce the balance you only are charged 1.99% for while not paying off your purchases which they'll start charging you XX.99% for!
It NEVER makes sense to do a balance transfer to a mileage card UNLESS you will totally avoid making purchases (and thus earning miles from purchases) on that card until the balance transfer is paid off in full.