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View Diary: The bank said 'You'll be back.' (549 comments)

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  •  ... assuming that you pay full rate. (6+ / 0-)

    Officially, I have about $19k in credit card balances.  Every single dollar of that is at 0%.  Given that all of that amount was initiated at durations of 12 months or more, I have not paid more than 4% for "preapproved loans".

    It is possible to mine credit cards for money.  People have been doing it for decades.

    -7.75 -4.67

    "Freedom's just another word for nothing left to lose."

    There are no Christians in foxholes.

    by Odysseus on Fri Nov 04, 2011 at 10:25:32 PM PDT

    [ Parent ]

    •  it used to be a heck of a lot easier. n/t (4+ / 0-)
      Recommended by:
      Larsstephens, Odysseus, frustrated1, sb
    •  I'm floating about $10k in purchases at 0% (4+ / 0-)
      Recommended by:
      frustrated1, Philpm, sb, Odysseus

      I could pay it out of savings, but I see no reason to dig into it with 0% credit cards available.

      I've been saving in a special bank account to pay that off when the 0% goes away, but balance transfer fees are like 3%, then it's 0% for another 18 months or whatever. So I may just pay the transfer fee and keep floating it. I find it hard to save cash due to bad spending habits so on balance I'd rather pay a little interest and continue amassing liquid savings, even if it costs me a little money.

      (-5.50,-6.67): Left Libertarian
      Leadership doesn't mean taking a straw poll and then just throwing up your hands. -Jyrinx

      by Sparhawk on Sat Nov 05, 2011 at 08:29:50 AM PDT

      [ Parent ]

      •  But the 3% Transfer fee... (2+ / 0-)
        Recommended by:
        Odysseus, ilmartello

        ...basically eliminates any advantage of the 0% interest.  There are very few (if any) deposit accounts with interest rates in the 3% range--most are about 1% annually.

        I'm doing something similar, but I have no intent of floating the 0% onto another card.  I bought an Alienware laptop (and, man, do I love it) for about $1,500 on a Discover Card that's giving me 0% interest for 6 months.  I took $1,500 and put it in a 1% Discover Bank Savings account.  When the 0% ends, I'll use the $1,500 in the savings to pay the credit, leaving me 0.5% (1% annual interest but for 6 months) ahead of the game.

        It's not much, but it's black ink instead of red.

        •  Yup, that's similar to the tradition. (0+ / 0-)

          Years ago, you could pay a 3% transfer fee and put the money into a 4+% CD.  I assume that's the kind of "easy" that montressor is referencing.  Those opportunities are few and far between.

          As I mentioned, you have to be more creative now, or willing to accept different risks.  It's a damned shame when it's cheaper to buy a house with a credit card than through a bank.

          -7.75 -4.67

          "Freedom's just another word for nothing left to lose."

          There are no Christians in foxholes.

          by Odysseus on Sat Nov 05, 2011 at 03:01:51 PM PDT

          [ Parent ]

    •  this is a bad idea (2+ / 0-)
      Recommended by:
      Phil S 33, ggwoman55

      opening and closing a bunch of accounts, along with the inquiries hurts your credit score

      •  Define "A bunch"? And very low traffic. (0+ / 0-)

        I have a total of 7 credit cards, with a total credit line of over 60k.  (more than a year's salary)  I haven't opened many accounts, typically less than one per year, and it's been a few years since I closed one.  Chase lost my business when they instituted an annual fee on one of my cards.  That's something I will not tolerate.

        My first credit card, which I still have, was a Discover card I opened in 1990 or so.  Initially a $1500 limit, they kept increasing it through the years, now it's nearly $12k.  Discover is terrible in a few ways, they tend to have both high transaction fees  (5% fee on balance transfer!) and high merchant fees.  But zero annual fee, and they are relatively straightforward with little bullshit.

        And as much as people hate them, the BOFA card I opened in the late 90s recently sent me an offer for 4% fee, 0% interest for 12 months *including cash advances*.  Not being a moron, I immediately maxed my $6300 cash advance line.  That cost is lower than my mortgage rate.  I can pay myself and still make money.

        I won't be closing my BOFA account until at least August 2012.

        Like I said - mining money.  You gotta be ruthless and work on your terms, not theirs.  Pay everything off every month, unless they make it worth your while.

        It's an interesting world when people throw money at you.

        -7.75 -4.67

        "Freedom's just another word for nothing left to lose."

        There are no Christians in foxholes.

        by Odysseus on Sat Nov 05, 2011 at 02:37:34 PM PDT

        [ Parent ]

        •  But aren't you... (2+ / 0-)
          Recommended by:
          Odysseus, ilmartello

          ...still losing the 4% transfer fee?

          I can see this being viable if anyone had a deposit account that beats 4% annually, but if such a beast exists, I haven't found it.

          Also, Discover isn't all that straightforward.  Their cashback program requires you spend $6,000 before getting to the 1% threshhold.  Before that, you're earning 0.25% (outside of the rotating 5% categories).  Chase's "Freedom" card beats that--it's 1% all the time outside its 5% categories, with no minimum spend.

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