I've had two primary cards for the past few years. One is a Chase that carried a $650 balance with a $700 limit. The other is a Citi that had a $2,000 balance with $5,500 limit. I have paid the minimum payment, on time every month on these accounts. There was never a missed payment or problem with either account. During the summer I received several e-mails from Citi touting 0% balance transfer options. Last month, I decided to consolidate this debt onto one credit card by transferring my Chase balance ($600) onto my Citi. The transfer was quick & easy with no issues. So, of course, this is where the problem begins. I logged on to my Citi account on 08/21 only to find that the payment was due 08/18. I immediately made the payment and called Citi about any late fees. Citi reversed their $35 late fee since there has never been an issue with the account but informed me that my 0% interest has changed to the astronomical 29.99% outlined in the terms of agreement for the transfer. I pleaded my case that the payment was only late by 3 days but they told me nothing could be done to lower the rate until another 12 months! I was aware of the default rate but I never thought it would be an issue since I've always made my payments on time. I called Chase and had my credit limit raised from $700 to $2,100. Does it make sense to look into a balance transfer through them (i.e. - if they have a 0% offer, to transfer the Citi balance back to Chase). I know there will be a percentage fee for the transfer but it will definately be less than the accumulated 29.99% I'll be paying from here on out. Does anyone have any suggestions or advice? Thank you in advance!!
If Chase will give you a decent transfer rate, do it. Then only use the Citi card for something you can pay in full at the end of the month, like gas or groceries. That will keep the card active and after a year they'll lower the rates.
