This may be a dumb question but I've never done a balance transfer. How do they work? Is it possible to payoff any card? The only card I have is a secured FCNB Visa with a $5000 limit. Can I payoff a secured card with a balance transfer? BTW I was looking over the disclosure and couldn't find info on transfers. Like what is the intro % rate and for how long. Does this vary or is it the same for everyone? If so could someone please provide this info? Thanks
I don't explain things very well, but I'll give it a (small) shot: Generally, a balance transfer is where you take the balance of one credit card and move it to a different card, the one offering the better terms. It doesn't have to be a bank card, it can be a department store or line of credit account, or even a loan. Some offers let you write a check to yourself, some don't. MBNA will even transfer to your checking account! Using your FCNB account for an example, suppose you get a new card from Discover. They offer you a rate of 2.9% FOR BALANCE TRANSFERS ONLY for 6 months. They send you some blank checks, you fill one out and send it to FCNB. FCNB receives it and posts it as a payment. Now you don't owe them anymore. Discover gets the check back and posts the amount as a purchase on your account. You've just done a balance transfer. Instead of owing FCNB $5K at 18%, you owe Discover $5K at 2.9%, until the rate expires. Then you will be paying the current rate for purchases, whatever that is. You can also call customer service for this, or sometimes online. I've never had a FCNB account, so I don't know if they offer them. If you can't find any information, they probably don't. Even if you can't transfer TO that card, you can definitely transfer OUT to another account. Also, you have to be careful about fees. Almost all banks will charge a transaction fee, from 3-5% of the transfer, but I know MBNA and Citibank cap the amount at about $30. Finally, the offers vary WIDELY. I've received 2.9 for 9 months, 7.9 for 9 months, 3.99 for 9 months, 5.9 for 6 months, 0% for 3 months, shall I go on?? I hope this was useful. Any ??, I'm sure someone can answer them!
Thanks JacquiG. Well I get that part. I wasn't specific enough with my question though. What I wanted to know is could I use transfer my FCNB balance to my new Citibank cards? And what intro rate and time period I get from Citibank? Thats what I couldn't find info on, my Citibank disclosure about balance transfers. Thanks
You should contact Citibank. Their rates vary from as low as 0% to 9.9% APR. One thing to keep in mind, the balance transfer may not be treated as a purchase for rebates or reward purposes or for earning miles. A better way would be to make a purchase for cash online through a service like PayPal. CreditWorks' offers the ability to purchase memberships online through PayPal. We pay 19.47% APR on the membership. The transaction is treated as a purchase, so you qualify for the purchase rate and for the rewards, rebates or miles. It is a great way to take advantage of unused credit. http://www.creditsense.com
you have to request it If you have the Gold card you may request a balance tranfer it isn't automatic with the card. You must call and they will send your request to the business department. It is 6.9 for 6 months. Mom
