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Originally Posted by AndersB
Quote:
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Originally Posted by NM
Well maybe I will just write a $1000 cheque to myself, bank it into my savings account and BPay it back to Citibank to avoid paying interest.
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This is probably not a good idea if you have debt at the the low balance transfer rate.
It seems to work like this: let's say you have balance transfer debt of $4000 at 4.9% (for the life of the debt they claim). You then use another $1000. The debt is now $4000 @ 4.9% + $1000 @ 15% (or thereabouts). When you pay back the $1000, it will reduce the original balance transfer debt.
So the end result will be $3000 @ 4.9% and still $1000 @ 15%
I didn't read the fine print so they got me on that one.  |
...every credit card works like this dude..
however I have noticed westpac and anz ...a portion of your payment goes to each area of your existing balance (BT, OB) you can really see it on the breakdown between the westpac amex and mc/vs