Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.


Sign in to follow this  

Is it smart to balance transfer?

The last post in this topic was posted 892 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Recommended Posts

So my balance transfer on my credit card is less then the other credit card that I have debt on so is it smarter to pay off that card and keep transferring balance there because Ill incurr less interest and no balance transfer fee since its a navy federal cc.

Share this post


Link to post
Share on other sites

If you can save overall interest, factoring in transfer fees (which you said are $0), then it makes sense, yes. Just be sure you aren't reducing the total amount you are paying each month so you aren't delaying the amount of time it will take to pay it off.

Share this post


Link to post
Share on other sites

So say I pay $100 on the navy card and I transfer $100 from another credit card would that be smart because it’s like I am paying $100 to that other credit card. Navy federal cards have no transfer fees.

Share this post


Link to post
Share on other sites

No, in that case if you wanted to move the $100 you should pay Navy $200 so that youre not increasing your balance overall.

Share this post


Link to post
Share on other sites

NFCU balance transfers may not have a transfer fee but there is no grace period so your statement will include x number of days of interest from the transaction date.

Share this post


Link to post
Share on other sites

So say I pay $100 on the navy card and I transfer $100 from another credit card would that be smart because it’s like I am paying $100 to that other credit card. Navy federal cards have no transfer fees.

 

Under this scenario you're NOT paying $100 to that other credit card, (Navy Federal is).

 

Think of the childhood game of Musical Chairs. Every time the music stops someone doesn't get a chair.

 

Play this game with CC issuers long enough and eventually you won't get a chair.

 

Balance transfers can help you save money under limited circumstances, but unless you have a reasonable plan whereby you can eventually pay back ALL the money you've borrowed on a revolving basis, the BT game isn't a whole lot different than "re-arranging the deck chairs on the Titanic"

Share this post


Link to post
Share on other sites

 

So say I pay $100 on the navy card and I transfer $100 from another credit card would that be smart because its like I am paying $100 to that other credit card. Navy federal cards have no transfer fees.

Under this scenario you're NOT paying $100 to that other credit card, (Navy Federal is).

 

Think of the childhood game of Musical Chairs. Every time the music stops someone doesn't get a chair.

 

Play this game with CC issuers long enough and eventually you won't get a chair.

 

Balance transfers can help you save money under limited circumstances, but unless you have a reasonable plan whereby you can eventually pay back ALL the money you've borrowed on a revolving basis, the BT game isn't a whole lot different than "re-arranging the deck chairs on the Titanic"

+1

Share this post


Link to post
Share on other sites

Do you mean you have a $5k balance with a $100 minimum payment and you're thinking about doing a BT with Navy every month to cover the payment? If so, that will cost a lot more money in interest. It would be much better to transfer as much as you can to Navy (if the interest rate is lower) and make payments on both. Of course, you will need to take into account how much interest will accrue and your payment amounts to determine how close to your limit you can get.

Share this post


Link to post
Share on other sites

Wouldn’t it be smarter to do a balance transfer and pay the balance transfer apr then paying my higher interest card before it’s due? My navy federal card has a 17% interest on balance transfer and no balance transfer fee. My credit card has a 24% interest. So I am trying to ask if I should transfer how much I paid on my navy since my navy federal has a lower interest rate and no transfer fee, while my cc has a 24% interest or am I overthinking it?

Share this post


Link to post
Share on other sites

If there is no balance transfer fee and your NFCU CC has a lower interest rate than your CC with a balance then by all means you should transfer the balance to save you money and keep paying as much as you can towards the balance so it is paid off faster and saves you money.

Share this post


Link to post
Share on other sites

Okay so one last question. Say I did transfer to my chase to my navy now is that 3 interest charges I have to worry bout instead of 2? What I am getting is I pay interest the balance transfer and an interest in my chase+ navy(from previous balances or am I only going to pay for 2? Really confused here.

Share this post


Link to post
Share on other sites

If you have already made or make new charges on the Navy card, you will be paying interest on that as well, but the interest rate is probably the same unless there is a promo rate involved.

Edited by nooneimportant

Share this post


Link to post
Share on other sites

So am I paying for 2 or 3 interests? 1 navy,1 chase, 1 navy(for BT) or is it navy and navy(for BT) and my chase doesn't get charge current for the interest because its not like I am transferring all my balance to my navy card. I am confused there.

Share this post


Link to post
Share on other sites

So am I paying for 2 or 3 interests? 1 navy,1 chase, 1 navy(for BT) or is it navy and navy(for BT) and my chase doesn't get charge current for the interest because its not like I am transferring all my balance to my navy card. I am confused there.

 

Just one interest rate for each card.

 

Unless there is a PROMO RATE involved.

Share this post


Link to post
Share on other sites

The last post in this topic was posted 892 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




  • Member Statistics

    • Total Members
      179,604
    • Most Online
      2,046

    Newest Member
    datboykahn
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines