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Balance transfer - any consequences for "source" card / account ? (other than having a nice empty c.c. account)

by Ofolaller 27 May 2009 |

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None of this multitude of articles promoting 0% balance transfer cards (repetitively promoting the same three, Virgin etc.) have mentioned what I would have thought is an obvious question to the ignoranti, like me, which is are there any charges involved in the "source" card when the debt on it gets cleared out to another card.
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(A separate question, can you transfer (mutatis mutandis) from MC to MC, Visa to Visa, and between Visa and MC, equally easilly?
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Tron posted
Hi Ofolaller
I think you ask a very valid question, but to the best of my knowledge, there is no straightforward answer.
The short answer is, it depends on the "source" card.
Assuming you are transferring the entire balance of the "source" card to the new card you would only be subject to applicable monthly or annual fees that are associated with the particular card. Some credit cards do not charge any fees, so generally speaking under such circumstances there would be no charges for doing so.
Things to be conscious of in regards to the "source" card presuming one does not cancel it upon clearing the balance.
1. Are there any annual fees?
2. Is there a monthly minimum payment? Is this applicable when there is no balance. If so, does it pay interest on credit balances?
In relation to the MC to Visa etc... This should not present an issue. MC and Visa are merely processing agents. They bascially power the technology involved in moving/managing the money.
HTH
Tron
Posted on 27 May 2009 | Love 1 love Report
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MikeGG1 posted
I think you may have a misunderstanding from your use of "source".
What we have is a transfer of money from your new account which settles the balance on your old account in just the same way as if you had made the transfer from your own current account. Any subsequent fees on your old CC account would depend on the terms of that account, such as annual fees just for having the account.
Credit card accounts are really bank accounts that operate in negative territory most of the time whereas a current account is supposed to operate in positive territory most of the time.
It makes no difference whether the CC is part of VISA or MC. They are just the means of the business obtaining the funds from your CC account as payment for the goods or service.
Mike
Posted on 27 May 2009 | Love 1 love Report
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Ofolaller posted
Thanks to Tron and Mike for the above answers. I can see now that using the concept of source and target account is misleading: what I called source could equally be called target (for the funds). I see now that the old account is indifferent to the where the funds are coming from, current account or new credit card or some other means.
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Posted on 27 May 2009 | Love 0 loves Report

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