Why I Used Barclay’s Balance Transfer Offer
***Before I get into my offer and why I ultimately used it, I want to caution everyone that you should never spend money you don’t have for credit card rewards. If you are going to carry a balance you’ll almost always pay more in interest than your points are worth.***
There are so many ways to go a little overboard in this hobby. I recently committed myself to meeting the sign up bonus spend requirements for 4 cards then to top it off I realized I had only met 1/2 the 15k spend for my Hilton free night. Basically what I’m saying is that I needed to spend around 20k in a short period and to make matters worse, I was a little lower on cash than usual due to a recent large purchase.
During that same period I received a balance transfer offer from my JetBlue Plus card and this time I actually opened it. Surprisingly the offer was for up to $12k with 0% APR for 4 months and only a 1% transfer fee. Generally the fee is 3% so this was a good offer as fair as transfer offers go. No points are earned on transfers.
If I was to meet all my spending requirements and pay off all the balances without incurring any extra interest I needed a little extra cash. Of course I could have withdrew money from investments but then I’d be losing interest and have extra administrative steps. It was actually easy for me to justify the 1% fee for a quick 10,000 loan.
To be clear, if I didn’t think I was going to be able to pay back the 10k by the time the into APR ended I never would have done it. Barclay’s also make the process painless by allowing you to transfer the money directly into your checking account.