Credit Card Balence Transfer?

Question

I have a credit card with a balance that includes a balance transfer from a previous account that has 0.0% APR for a while and the rest of the balance on the card is from purchases that has a high percent APR. All my payments that I make go toward the balance transfer which has 0% APR and the interest from my purchases keeps building up and doesn't go down. How can I transfer JUST the purchase balence that I have on that credit card. This is kind of a confusing situation, let me know if you have any clarity questions.

Answer 1

Sorry, but you cannot do that. When the credit card company receives money for your account, they will apply it to the part with 0% interest until that is paid off. Then they will start to apply it to the part with a higher interest rate. If you look at the terms of credit that you got when you first got the card, it is in the legal terms there. When you transfer balances, the same thing still applies.

So your options are:
1) Stop using the card with the 0% interest on part of the balance so that you stop making the high interest rate balance grow bigger. Use the other card for your new purchases.

2) Transfer the ENTIRE balance to the other card (assuming the credit line is high enough). Then DON'T USE IT. Let that balance sit there with the low interest rate while you use and pay off the other card each month.

Keep in mind that you probably pay a fee (3% is common) for transfering the balance. That fee will NOT be at the 0% interest rate.

Also, try to pay down your balances as fast as possible. Don't simply make the minimum payments. Also, don't pay late, or you will lose your introductory rate and will instead have a HIGH default interest rate.

I hope this helps!

Answer 2

Transferring balances to a low interest credit card is a widely prevalent practice. But, is every available balance transfer credit card the same? A good look at the offers and you will find that some of them surely standout from the crowd. What makes them different and more lucrative? Here are 5 factors that will help you select a balance transfer credit card that will prove more beneficial than others.

1. Earlier it used to be 0% Intro APR on balance transfers for a specified period, but now it is gone. It is very rare to find a balance transfer credit card with 0 % Intro APR. So, the next best thign is a low APR for balance transfer. There are many credit card which offer balance transfer at APRs ranging from 4.5% to 7% for a limited period and a regular APR after that.
2. It is good to have a low APR balance transfer but if a credit card offers a low APRon balance transfer for a very short period of time, it is better to look for another. Low balance transfer APR for the life of balances is a good option to have.
3. Credit card companies do charge some fees for transfering the balance. This could be anything between 3-5% of the amount transfered. This balance transfer fees increase the cost of balance transfer. So, the ideal situation would be to have a credit card which doesn't take any balance transfer fees. Read more from: http://www.credit-card-gallery.com/credit_card_balance_transfer.html

Answer 3

You can't. Balance transfers work by the card you transfer the balance to sending a payment to the card you are transferring the balance from. That card will apply the payment to the existing balance under the same rules as any other payment. As you have already discovered, that means the 0.0% balance is payed first and the higher rate balance continues to grow until the lower rate balance is paid off.

Answer 4

You can transfer all or part of a balance to a new card. But everybody knows that, so that can't be your question.
Everybody should know to pay the most on the card that has the highest interest rate.
Everybody should know that you never charge more on a card than you can pay at the end of the month.
Interest rates on cards are often high. So you should get a lower interest rate loan or a mortgage. Have a garage sale, get a second job. Pay them all off.
Those are the rules, but probably not the answer you want.

Answer 5

Your credit card agreement likely says that the payments applied will go to the balance with the lower interest rate first, then the highest. Like the previous person said, that's how the credit card company makes their money.

Answer 6

It won't happen. Any payment you make on that card (to transfer the balance) they will automatically apply to the balance that does not have interest accruing. That is how they make their money.

Answer 7

Transfer the whole shoot'n atch to a new account with no interest. Mastercard is offering such, as they get more desperate.