Dear myb821,
Can you please elaborate on this method, what exactly is the process? and are there any fees involved?
Here is my original post to which you were referring to:
Hi All,
I'm trying to help a family member of mine who has a total of 14k in outstanding balances brtween 2 cards and wishes to do a balance transfer to a card with 0% APR for the first 12-18 months.
He currently has:
Chase united (old) card with a 25k credit line and around $7000 outstanding balance
Bank of America card with a 17.5 CL and around $7000 outstanding balance
He has a great credit score but has a reportes income of $14k annulay and insists on reporting this income.
What's his direction to go for a complete balance transfer with a 0% apr and maybe even a nice Signup bonus?
Thank you all in advance!
I'm not myb821, but I'll take a crack at this...
When you do a balance transfer, the new bank has no idea exactly how much you owe the old bank. All they know is that you tell them "cut my old bank a check for $7k, and cover that check using my new card". But you could theoretically tell them any amount you want.
That being the case, instead of telling Chase "pay BoA $7k on my behalf", you tell them "pay BoA $14k on my behalf". Chase never knows the difference. Meanwhile, BoA gets the check for $14k and realizes that you overpaid, so they send you a refund check for the difference. You then use that check to pay off the other card, and tada! Bob's your uncle.
Oh, and the Slate generally has no balance transfer fees during the first 30 days.