Author Topic: Credit Card Offer Question  (Read 881 times)

Deano

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Credit Card Offer Question
« on: July 27, 2015, 06:27:13 PM »
A question on "Balance Transfer" deals on Credit Cards. I'm about to pay for some work on my house, about 5k (repairs!). My credit card company just sent a notice that I can have .99% interest for 10 months if I do a cash advance to my chequing account. Well, my money is earning more than that so it seems like a good idea-I can easily pay it off in 3 to 5 months, incurring no real hit money wise.

My question is this-every month I have professional dues that come out of my credit card automatically-100 bucks. I pay it immediately of course, but my thinking is that the credit card company will pay the 100 I pay on the  .99% portion of the CC first, leaving me with 19% on the 100 bucks per month that comes out automatically. Let's say I just pay 100 for 3 months (just to highlight what would happen)-I would be left with 4700 owing on the the .99% balance transfer, with 300 bucks costing me 19% interest. Does this sound like the likely scenario to anyone else?

Thanks for any input!

CashFlowDiaries

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Re: Credit Card Offer Question
« Reply #1 on: July 27, 2015, 06:35:47 PM »
That is probably what I would assume but honestly, you should call your credit card company and tell them the situation and find out for sure. They should be able to tell you.

In a perfect world, to not worry about this, you would switch those "professional dues" to be taken out of a different credit card or account.  That way you could just use this credit card for the repairs and ensure your .99% rate.  That is a good deal especially if you know you can pay that thing off in 3 to 5 months.

nora

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Re: Credit Card Offer Question
« Reply #2 on: July 28, 2015, 03:41:26 AM »
For the balance transfers I have, only the balance that was tansferred is at the lower rate. If I don't pay the purchases off each month they incur a 20% interest rate. So I pay the minimum each month or the cost of the purchases i made, whichever is the higher.