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Re: Credit card 0% cash advances
Old 11-30-2005, 09:21 PM   #41
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Re: Credit card 0% cash advances

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Originally Posted by Apocalypse . . .um . . .SOON
You go, Justin. We're all watching to see how it ends goes. Maybe you'll end up retired in Costa Rica in a year. Good Luck.
--Greg
How are the extradition laws there?
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Re: Credit card 0% cash advances
Old 11-30-2005, 10:09 PM   #42
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Re: Credit card 0% cash advances

Just received another Citicards pre-approved offer in the mail today. $400 for the old FIRE fund.

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Re: Credit card 0% cash advances
Old 12-01-2005, 08:40 AM   #43
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Re: Credit card 0% cash advances

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Originally Posted by justin
Just received another Citicards pre-approved offer in the mail today.* $400 for the old FIRE fund.*

Yeah, they just keep coming. Hope it goes on forever.
Free Money! Whoo-hoo!

JG
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Re: Credit card 0% cash advances
Old 12-01-2005, 08:47 AM   #44
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Re: Credit card 0% cash advances

Has anyone considered universal default rates?* It's great and all to borrow free money, but caveat emptor!* These sneaky CC companies can pull your credit report and bump your rate from 0% to the default APR, usually around 24%, if they see you're over utilized.* ** The universal default can be so restrictive that if looked at the CC company crossed eyed, you could get hit.* Bottom line is, read your disclosures!
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Re: Credit card 0% cash advances
Old 12-01-2005, 08:57 AM   #45
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Re: Credit card 0% cash advances

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Originally Posted by cube_rat
Has anyone considered universal default rates?* It's great and all to borrow free money, but caveat emptor!* These sneaky CC companies can pull your credit report and bump your rate from 0% to the default APR, usually around 24%, if they see you're over utilized.* ** The universal default can be so restrictive that if looked at the CC company crossed eyed, you could get hit.* Bottom line is, read your disclosures!
Good point. I've been working this deal for years and NEVER
had a real problem. If the CC company tripped me up
with fine print, or even if I screwed up and wound up
with "24%", I guarantee I would not pay it. I would negotiate out of it. Remember, I have the money, thus I have the leverage.
They don't have a chance.

JG
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Re: Credit card 0% cash advances
Old 12-01-2005, 11:00 AM   #46
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Re: Credit card 0% cash advances

In the event I get hit with a universal default, I can pay off the debt immediately. I don't think "using the credit I've been extended up to its full limits" is a default term. The CC companies can see the credit I have available and my current credit utilization. Unless I agree with my creditors to refrain from using certain credit facilities or agree not to exceed a certain ratio of outstanding debt to available credit, they cannot hold me in default for exercising my contractual rights to the fullest extents.

The universal default concerns me. It is a risk. The acceptable failure rate for making on time payments on this venture is zero percent. The downside is limited.

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Re: Credit card 0% cash advances
Old 12-01-2005, 11:51 AM   #47
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Re: Credit card 0% cash advances

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Originally Posted by justin
In the event I get hit with a universal default, I can pay off the debt immediately.* I don't think "using the credit I've been extended up to its full limits" is a default term.* The CC companies can see the credit I have available and my current credit utilization.* Unless I agree with my creditors to refrain from using certain credit facilities or agree not to exceed a certain ratio of outstanding debt to available credit, they cannot hold me in default for exercising my contractual rights to the fullest extents.*

The universal default concerns me.* It is a risk.* The acceptable failure rate for making on time payments on this venture is zero percent.* The downside is limited.*

Sorry, I have to disagree.* I got slapped with a universal default rate when the creditor from company A saw that I was at 90% utilization with company B.* They can hold you to the terms and conditions (which can contain a mixed bag of conditions that fall under universal default rates.) when you signed for the card.*

In regards to paying off the debt immediately, is it really worth paying 24% on $10,000 for one month? It seems like it would defeat the whole purpose of saving money, IMHO.

Here are some credit forums if you are inclined to do some research:

www.creditboards.com
www.artofcredit.com


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Re: Credit card 0% cash advances
Old 12-01-2005, 12:29 PM   #48
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Re: Credit card 0% cash advances

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Originally Posted by cube_rat
Sorry, I have to disagree. I got slapped with a universal default rate when the creditor from company A saw that I was at 90% utilization with company B. They can hold you to the terms and conditions (which can contain a mixed bag of conditions that fall under universal default rates.) when you signed for the card.

In regards to paying off the debt immediately, is it really worth paying 24% on $10,000 for one month? It seems like it would defeat the whole purpose of saving money, IMHO.
So I pay 2% for a month. That is assuming it takes me a full month to pay off the balances or cure the default and have my original rates reinstated. When I'm getting 4% per year, it is a risk I'm willing to take. Remember, everything is negotiable, especially when it comes to interest rate terms with credit card companies.

In regards to the universal default terms, I've done my due diligence. I've read the terms and conditions on the CC agreement, and understand it pretty well (I went to law school). The agreements I have with the companies I deal with do not have a credit utilization limit that, once reached, triggers a term of default. I'll be watchful in the future, but for now I'm safe. I know there are risks involved in these types of transactions. But they are easily quantifiable and determinate.
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Re: Credit card 0% cash advances
Old 12-01-2005, 02:49 PM   #49
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Re: Credit card 0% cash advances

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Sorry, I have to disagree. I got slapped with a universal default rate when the creditor from company A saw that I was at 90% utilization with company B. They can hold you to the terms and conditions (which can contain a mixed bag of conditions that fall under universal default rates.) when you signed for the card.

In regards to paying off the debt immediately, is it really worth paying 24% on $10,000 for one month? It seems like it would defeat the whole purpose of saving money, IMHO.

Here are some credit forums if you are inclined to do some research:
A lot of folks dont go over 90% utilization on any one card since that is known to be something cc's dont like and many do considerably less. Maxing out your total credit, is REALLY BAD, too. Some just do it and hope for the best (or dont know the additional risk that you appear to be). Are you saying your bt rates went up or your purchase rate?
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Re: Credit card 0% cash advances
Old 12-01-2005, 03:14 PM   #50
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Re: Credit card 0% cash advances

Yes, it's bad. This occured during a dark period in my life. Today, I have no debt other than my mortgage which is far cry from where I was at last year. My non-mortgage debt last year = $65,000 :P Today = $0

I think the OP (justin you can bust my chops if I'm incorrect), wants to leverage existing credit by using a balance transfer mechanism to fund a savings account like ING or Emigrant. He'll let the money sit in the account until the clocks runs out. Then pay in full. I got the impression from the OP that he would leverage the entire available credit, hence my preaching about over utilization.

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Re: Credit card 0% cash advances
Old 12-01-2005, 05:07 PM   #51
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Re: Credit card 0% cash advances

I won't do any chop busting. I'm not the OP here, but I think what you are saying , CR, is correct. The OP and I are taking out all of the available credit on a particular 0% card. In my case, I usually leave $100 or so available, just in case some little annual fee that they aren't supposed to charge me gets in there. In my situation, I'm probably still not up to 50% util overall, since I have many other credit card accounts open.
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Re: Credit card 0% cash advances
Old 12-01-2005, 05:17 PM   #52
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Re: Credit card 0% cash advances

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Originally Posted by cube_rat
Yes, it's bad.* This occured during a dark period in my life.* Today, I have no debt other than my mortgage which is far cry from where I was at last year.* My non-mortgage debt last year* = $65,000* :P Today = $0

I think the OP (justin you can bust my chops if I'm incorrect), wants to leverage existing credit by using a balance transfer mechanism to fund a savings account like ING or Emigrant.* He'll let the money sit in the account until the clocks runs out.* Then pay in full.* I got the impression from the OP that he would leverage the entire available credit, hence my preaching about over utilization.*

I had lunch with my brother on Tuesday. We touched on this.
I had just gotten started when his eyes glazed over.
This is so simple, and yet some (most) folks don't seem to get it.
Truly, it makes me wonder. OTOH, lots of people hire
others to manage their money and abdicate any involvement.
I confess that I don't get it. The CC companies have it all
worked out though.

JG
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Re: Credit card 0% cash advances
Old 12-01-2005, 05:26 PM   #53
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Re: Credit card 0% cash advances

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Originally Posted by maddythebeagle
A lot of folks dont go over 90% utilization on any one card since that is known to be something cc's dont like and many do considerably less. Maxing out your total credit, is REALLY BAD, too. Some just do it and hope for the best (or dont know the additional risk that you appear to be). Are you saying your bt rates went up or your purchase rate?
My experience is 100% positive. First, I max. out all cards
where I can reinvest and pocket the spread. No problem.
Secondly, no card has any chance of collecting 24% from me,
no matter what happens. DW calls this "beating them into
submission". Whatever it is, I don't care what the CC rules are,
or what they "like". What I want is what's important, and that's
where we will end up. Count on it.

JG
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Re: Credit card 0% cash advances
Old 12-01-2005, 05:54 PM   #54
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Re: Credit card 0% cash advances

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My experience is 100% positive.* First, I max. out all cards
where I can reinvest and pocket the spread.* No problem.
Secondly, no card has any chance of collecting 24% from me,
no matter what happens.* DW calls this "beating them into
submission".* Whatever it is, I don't care what the CC rules are,
or what they "like".* What I want is what's important, and that's
where we will end up.* Count on it.
Aernt you dipping "into the stash" for living expenses and hoping to replenish it with social security and a reverse mortgage* :
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Re: Credit card 0% cash advances
Old 12-01-2005, 06:25 PM   #55
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Re: Credit card 0% cash advances

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Originally Posted by maddythebeagle
Aernt you dipping "into the stash" for living expenses and hoping to replenish it with social security and a reverse mortgage** :
Yep, a little bit. You gotta have some self control. In my case,
it's a pile of money. BTW, I have not "dipped" for any
day to day stuff. I assume the CC companies are hoping
you will "go nuts". I also assume they are right most of the time.

JG
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Re: Credit card 0% cash advances
Old 12-04-2005, 12:04 PM   #56
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Re: Credit card 0% cash advances

Spent a couple of hours on this today. Lining up "deals" to fill in
as promos end. I found one card's promo rate that is expiring where I can shift the entire line onto another card from the same company and
then max. it out into my checking account at -0-% until next May.
Mixing and matching, switching banks whenever I find a better
deal, I've taken some money as high as 3.99% and can even make a little
at that level. Most is at -0- though. BTW, don't forget that it never hurts to ask. Sometimes you will be amazed what you might
discover. This is what I mean when I say if things stayed as they
are now, I could just borrow my way all the way to my demise,
rolling balances over and paying off cards as new deals are offered.
My income is so low the interest is tax free. Not too sure how long I can continue that.

JG
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