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Author: Fuskie Big funky green star, 20000 posts Top Favorite Fools Old School Fool Ticker Guide SC1 Red Winner of the 2010 Rule Breakers Challenge Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308519  
Subject: Re: Balance transfer "game" Date: 4/17/2012 8:28 PM
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Not a long post at all. I should know. :-)

This is an interesting question because I've not heard of anyone doing this before, but off the top of my head I cannot think of why it won't work. Of course, it's going to cost you an extra $147, so factor that into the equation. I don't know how the credit card company would treat two promotional balances with the same interest rate - you are correct that the law speaks to paying off the higher rate first, but not to your situation.

However, I don't see how this would affect your credit score. Your debt to credit ratio will see no net change (other than the $147 fee) and the act of using a Balance Transfer does not factor into the credit score formula.

Let's examine the worst case scenario, that they do try to stick it to you. You have 17 months until the first promotional offer expires. At $500/month, it will take you 11 months to pay off the first $5250, and in the remaining six months, you should be able to trim the remaining balance by about $3000, leaving you with a balance of $2047 (the $4900 plus the BT fee). You would also have 17 months to make additional payments to cover that plus the 1.99% interest charged.

Fuskie
Who would like to think that the balance with the promotional rate expiring first would be the higher priority, but would not put it past a bank to try and take advantage of a loophole...
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