Chase Balance Transfer Offer
by Mr Credit Card
It seems like I’m having some luck with Chase. Recently, Chase increased my credit limit by $1,000 to $5,500. (BTW – my Chase card has the smallest credit limit).
I just got a mail the other day with the headline : Write the check now. Pay it off later!. Isn’t this is what got us all into trouble in the first place?!? Well, it turns out that it is a letter offering me to do a balance transfer deal. Here was what the letter said :
Dear Mr Credit Card
Wouldn’t it be nice if you could write a check now and pay it off later – just like a credit card? Because of the good credit on your Chase Visa® account ending ####, now you can. We’ve attached checks you can write for any amount up to the used portion of your available credit.
Use the checks to get a low promotional 0% fixed APR until your 02/2010 statement opening date.
You can use the checks to transfer balances from other high interest rate cards. Or write a check to yourself and deposit it into your checking account. Just make sure you have enough available credit for the transaction(s), interest and any related fees.
Now, whatever great opportunities come your way, you’ll have the funds to take advantage.
Sincerely
Deb Wadden
Executive Vice-President, Customer Experience.
P.S. – Hurry, your checks must post to your account by 3/31/2009 to get this low promotional rate. For your convenience you can take advantage of this offer by using the enclosed checks, visiting www.chase.com/balancetransfer, or calling 1-800-945-2014.
I have a friend who works in the Chase credit card department (he is my inside source). He has told me that Chase has essentially stopped offering and marketing new cards, drastically reduced their direct mail campaigns. All they are doing now is just managing credit risk!
So I was pretty surprised to find this offer – which is essentially a balance transfer or 0% APR offer on purchases. I guess they would rather extend to existing customers than get new “riskier” customers?
But given that most banks now have removed the caps on balance transfer fees, I decided to look for the fine print. It was 3% of balance transfer, with a $5 minimum and a cap at $199. This cap of $199 is kind of meaningless because even if I transferred my entire line of $5,500, 3% only works out to $165! (note – if you apply for Chase cards from their site, they have no caps on their balance transfer fees!)
But those of you regular readers know I pay my bills fully every month. So this offer is essentially useless.
Oh – before I forget – right at the bottom of the letter it says :Use these checks to
Take a tropical vacation
Get a new computer
Spruce up the kitchen
Make a down payment on the car
Buy a new couch
Do whatever you choose
I always thought a down payment was not meant to be borrowed. And to think of how we all got into this mess, and how they screw customers who pay late etc, that they would still encourage us to use credit for these purposes simply bewilders me!
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February 16th, 2009 at 20:49
I received one of those offers from my Chase card too. I have a zero balance and I haven’t used the card in awhile so I guess this is my incentive from them to use it.
I don’t plan on using it but I love the way they make it sound like they are GIVING you money to use like you never have to pay it back.
March 2nd, 2009 at 22:16
Have a Chase CC. Took advantage of low interet promotional rates. Never missed a payment….always paid more than minimum. February 09′ Chase raised minimum payment from 2 to 5% and added $10/month service charge??? Nice way to reward a good customer. Will pay off account and never do business with Chase again…ever.
April 2nd, 2009 at 02:48
Maybe you can help. I have a question/problem. I have a Chase card, maxed out, sadly, to $20k. I get these promo checks from time to time. With my interest rate, I’m paying about $260/mo in interest. I always, always make my payments on time, but I’m just barely staying afloat.
However, I have enough money in a newly liquidated account to pay off the entire balance. That money is to be used as a down payment on a house, sometime in the next several months. My “idea” is to pay off my balance, and then a day or two later, use one of the promo checks (namely the 5% APR unitl Feb 2011), to give me back that money to use for my house down payment. Thereby saving me about $200/mo in interest payments. That could help me lower my balance if the money is going towards my principle and not interest.
My worry is that, in the fine print they say that they reserve the right to decline: “Under certain circumstances (for example, if your account is past due or over limit, or if we reasonable believe that you will be unable or unwilling to repay the balance or as described in your Cardmember Agreement), we may decline to process your transaction, in which case, you will be notified.
Basically, if they decide to cut my limit, or not allow this check, or whatever, I would have my balance paid off, but I’d be unable to buy the house I’m trying to buy.
Any thoughts? Does your inside guy have any thoughts about this? I know it’s a bit un-orthodox. Thanks.
June 5th, 2009 at 21:30
DC-
Whatever you plan, DO NOT use one of these Chase checks. I did, and that is when they lowered my limits on four cards to just about what I owed, except for the 0 balance card-it went fron $17,000 to $500 just like that-and the check I had deposited into my my checking account bounced! I plan to pay them off and NEVER use them again! They have RUINED my credit, causing a cascading of credit limit decreases, despite a FICO in excess of 720 to God knows what. The economy today is what it is-we all know that. I’m stuck with two houses-YIPPIE-but still have not missed or been late with any payments on anything. I’m tanked, nevertheless. Can’t buy anything. Great for the economy-right? It all sucks. I’m on cash basis for the remainder of my life-
June 16th, 2009 at 11:39
I also received one of these offers in the mail. I want to use it to pay off all my credit card debts. I plan to make a check of 5.99% apr in my name of the total balance I have of all my credit cards and then send about $300 payments a month to this card. Because I pay so much in interest I figured it would be better to pay interest to one card than to five.I this a good idea? Any suggestions?
July 27th, 2009 at 18:11
Friday I got a letter from Chase telling me that my credit card had been cancelled… I was never over the limit, never missed a payment, always paid way more than the minimum. When the account was opened under WAMU the rate was 9.9%, Chase raised it to 27% over the past year. I had already paid the card off, but this was the final straw. I called Chase and asked them to at least note with the credit bureaus that the card was closed by consumer instead of lender to keep my credit rating from taking a hit, first they said I had to call Experian, then I was told I had to reopen an account (after sending them a copy of my credit report!) so I could close it. Really brilliant plan there! I am so angry now I could chew nails. Unfortunately, they also hold my mortgage so I can’t tell them to totally kiss off like I’d like to! Never, ever do business with these crooks.
January 13th, 2010 at 17:19
Please discontinue sending me blank checks I do not use them. Thanking you in advance
Leonda Patrick
January 19th, 2010 at 15:52
Is there a maximum amount I can transfer to my Visa Slate card?
I want to pay off another credit card that is charging me a high rate.
Thank you
January 19th, 2010 at 16:13
it really depends on how much credit line they give you.