Help Needed - Multiple Balance Transfers?
Jul 27, 2015 | 9:36 am
#1
Original Poster
Join Date: Nov 2012
Location: CA
Posts: 28
Help Needed - Multiple Balance Transfers?
Hi everyone, I've never done a balance transfer before and I'm hoping you can weigh in on my plan.
My husband and I are planning to put some home renovation expenses on to some credit cards to meet minimum spend requirements and then balance transfer those balances to cards where we have 0% APR offers.
Can he and I complete 2 balance transfers each (4 total) without issue? And are BTs similar to CC app-o-ramas in which they should be requested on the same day? (Note that at this time I don't want to open any new CCs, even if they have 0% APR offers).
Here is the breakdown of $17.5k in transfers, each with the aim of keeping each transfer at 30% utilization:
Me:
$5.5k from Chase to Barclay Arrival ($18k CL)
$3k from Amex to Barclay Aviator ($10.5k CL)
Husband:
$6k from Citi to Chase ($24k CL)
$3k from Amex to Cap1 ($10k CL)
Please let me know if you think this will work, or if there are any other recommendations. TIA!
My husband and I are planning to put some home renovation expenses on to some credit cards to meet minimum spend requirements and then balance transfer those balances to cards where we have 0% APR offers.
Can he and I complete 2 balance transfers each (4 total) without issue? And are BTs similar to CC app-o-ramas in which they should be requested on the same day? (Note that at this time I don't want to open any new CCs, even if they have 0% APR offers).
Here is the breakdown of $17.5k in transfers, each with the aim of keeping each transfer at 30% utilization:
Me:
$5.5k from Chase to Barclay Arrival ($18k CL)
$3k from Amex to Barclay Aviator ($10.5k CL)
Husband:
$6k from Citi to Chase ($24k CL)
$3k from Amex to Cap1 ($10k CL)
Please let me know if you think this will work, or if there are any other recommendations. TIA!
Jul 27, 2015 | 10:25 am
#2
Join Date: May 2007
Location: Des Moines, Iowa
Programs: Hyatt, Fairmont, SPG, AA, WN
Posts: 102
That makes sense to me, but while the APR is 0% there is most likely a balance transfer fee which is usually 3-4%. So if the 0%APR is for 12 months, the 3% fee is essentially a 3% APR for the year.
This is still better than a HELOC since you are using unsecured credit rather than your house.
This is still better than a HELOC since you are using unsecured credit rather than your house.
Jul 27, 2015 | 10:43 am
#3
Original Poster
Join Date: Nov 2012
Location: CA
Posts: 28
That makes sense to me, but while the APR is 0% there is most likely a balance transfer fee which is usually 3-4%. So if the 0%APR is for 12 months, the 3% fee is essentially a 3% APR for the year.
This is still better than a HELOC since you are using unsecured credit rather than your house.
This is still better than a HELOC since you are using unsecured credit rather than your house.
Jul 27, 2015 | 12:16 pm
#4
Join Date: Jul 2013
Posts: 384
No, a BT is nothing like a credit card application. You can schedule the BT's as desired. There's no benefit to doing them all on the same day. Definitely make sure you're considering any applicable BT fees.
Jul 28, 2015 | 5:22 am
#5
FlyerTalk Evangelist
Join Date: Aug 2009
Location: ZOA, SFO, HKG
Programs: UA 1K 0.9MM, Marriott Gold, HHonors Gold, Hertz PC, SBux Gold, TSA Pre✓
Posts: 13,807
I strongly recommend against.
You are from CA. So your debt means your husband's debt as well (community property). So it does not matter where you put it.
I am not sure how many credit cards both of you have in total. Based on your plan, you will effectively take 4 cards out of commission. Of course, you can continue to use it. You are simply not taking advantage of the BT offer.
Also - it is easier to pay off a single large balance than 4 separate balance. Beside, BT is designed for debt consolidation. In your case, you are not consolidating anything.
Both of you will take a hit on credit due to the balance. Since credit lines are available, I don't see why 2 people have to take the hit altogether.
If I were you, a single BT to Chase.
You are from CA. So your debt means your husband's debt as well (community property). So it does not matter where you put it.
I am not sure how many credit cards both of you have in total. Based on your plan, you will effectively take 4 cards out of commission. Of course, you can continue to use it. You are simply not taking advantage of the BT offer.
Also - it is easier to pay off a single large balance than 4 separate balance. Beside, BT is designed for debt consolidation. In your case, you are not consolidating anything.
Both of you will take a hit on credit due to the balance. Since credit lines are available, I don't see why 2 people have to take the hit altogether.
If I were you, a single BT to Chase.