Question
Several years ago, I noted to a colleague who had some financial difficulties that they could actually do an entirely FREE balance transfer to certain credit card accounts timed to be just after the posting/statement date and avoid any interest charges for nearly two months. They could then pay it off by the due date and avoid accruing any interest charges at all since they had a true grace period on balance tranfers. There were at least three banks that I found that permitted this, and two were, as I recall, the Bank of Montreal and Chase Bank. They would then rotate the balance for free among the cards and avoid interest payments as they paid down the prinicpal. Lots of effort, I know! Yet I'm now told that they have tightened up and no longer permit this! Is this really the case?
Are there currently any credit cards now out there that will offer a truly fee free balance transfer and a real, even if short, grace period also?
Thanks very much! http://www.flyertalk.com/forum/smile.gif
Answer
Doc - I haven't had this card in over a year, but I had a Capital One credit card that allowed balance transfer initiated over the phone with a CS rep. The transfer would show as a purchase and as such would get the standard grace period for purchases. I would time the transfers just after closing date and realize the money interest free for almost two months, just as you describe.
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Thanks! Wonder if they are still doing this? Anyone know if it's still permitted?
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From my experience, Capital One still does offer free balance transfers with a grace period for repayment for non-promotional interest rates. So if you want a 4.9% promotional interest rate you will pay a transaction fee. To get the no transaction fee, grace period offer, you will have to do it at the "standard purchase rate" which will be significantly higher (ex 21.9%).
It's a no-brainer if you can pay the balance by the due date being that you will not incur finance charges if there is no balance after the due date.
Mike
Mike
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My experience was exactly as yours, Mike. If they were running a promo, there was a fee for the transfer and/or interest starting accumulating on day 1. For a non-promo transfer, the exorbitant interest rates applied, but so did the grace period, so no interest....
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Thank you! Anyone know if it's still permitted?
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My First Usa Visa still has it.
They regularly send checks with the promotional 3.99% rate and per check fee capped at $50. It does not say it anywhere, but these checks do have a grace period like any purchase. You might call and negotiate to waive the fee over the phone, they even have online transfer option. But the beauty really start after you pay off a very large balance - must be close to the credit line. They will send "come back" check with no fee and grace period too.
I don't know if they do it for all card, mine is ancient Gold card with no perks.
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If anyone is still interested in a card for completely free balance transfers for first 4 months try the juniper.com mastercard. You can do online balance transfers during your introductory period for no cost. Their online customer support is great too. Their used to be a bonus from Gomez.com but it doesn't seem gomez is doing bonuses anymore from what I see.