0% cash advance game: avoiding fees?

[justin]

I honestly think the Citi credit limits are based on a roulette wheel controlled by a monkey. There is no method to their madness.

 

[yelnad]

Citi ups the limits on each of my two cards every 4-6 months.

 

[OldAgePensioner]

I read thru the thread and did not see the answer to this question, but sorry if I missed it. The Balance Transfer is essentially a loan to you 10k at 0% for 1 year.

So how is it paid back? Monthly starting as soon as you receive the cash or in lump sum at the end of a year?

 

[brewer12345]

You generally have to pay back a minimum payment (1% or so) every month. After that, you pay off the remaining balance beforethe 0% offer expires.

 

[OldAgePensioner]

brewer,
thanks, I just received an AMEX blue with that offer and it's tempting.

What are the pitfalls? If you miss a month payment what happens?

It's tempting. I'm a sucker for sticking it to companies who are suckers

 

[Da Nag]

What are the pitfalls?

The biggest one I've seen - they apply all payments to the 0% funds first. So to really take advantage of it, you need to have a zero balance when you transfer funds or take a check, and refrain from charging anything else to the card.

Otherwise, you pay the normal interest rate on every dime over the balance transfer amount, every month. You can't send in extra funds to pay off new charges...they'll just get applied to the 0% balance.

Not sure if all the 0% offers are like this, but the two I've had (Citi and Chase) both were.

 

[Lakewood90712]

Discover card is the same , Payments are applied to the 0% ballange first.

John

 

[OldAgePensioner]

So it sounds like this money making scheme is best done on cards that are not to be used except for this purpose.

Who besides Citi, Chase, AMEX, MNBA, Discover, offer this 0% deal?  Sounds like a bit of fun for a retiree needing some diversion.

Here is a small list: http://www.creditcards.com/balance-transfer.php

 

[maddythebeagle]

So it sounds like this money making scheme is best done on cards that are not to be used except for this purpose.

right, if the disclosures says 0% for balance transfers, then sock drawer the card. Apparently, there are some people that cant read that they continue to give these offers out.

 

[HFWR]

brewer,
thanks, I just received an AMEX blue with that offer and it's tempting.

What are the pitfalls?  If you miss a month payment what happens?

It's tempting.  I'm a sucker for sticking it to companies who are suckers 

If you miss a payment, the loansharks CC company will raise the rate to 1000% north of 20%... Don't be late!!

 

[justin]

right, if the disclosures says 0% for balance transfers, then sock drawer the card. Apparently, there are some people that cant read that they continue to give these offers out.

Or the people know that they'll pay interest, but don't care. I mean, they really need that new plasma 72" widescreen tv, why not charge it on the card with the 0% offer on it already??

 

[OldAgePensioner]

OK before I pull the trigger after New Year, let me see if I got this right (help is appreciated)

1. I apply for a 0% card that does Balance Transfers (By the way what am I Transferring the Balance to?)

2. I do a maximum Balance Transfer.

3. When bill is due I pay just the minimum payment.

4. Just before the 0% grace period ends, I pay off the balance.

5. Meanwhile, I have the money in a money maker, CD, MM or ( mutual fund?)


Is this the gist of it?

I don't use credit cards so I'm not sure what it is or how to do a Balance Transfer?? Anyone, help?

 

[maddythebeagle]

I don't use credit cards so I'm not sure what it is or how to do a Balance Transfer?? Anyone, help?

call up the cc (they would be more than happy to help you transfer)