How to tap those -0-% CC offers?

M

Mr._johngalt

Thinks s/he gets paid by the post
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Dec 3, 2002
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4,801
Hello my good friends. Looking for ideas here.

I have a couple of credit cards in hand that are giving me
-0-% APR into 2006. However, they are very clear that this is only good for "purchases". How can I convert that credit into income producing invested funds
without actually buying merchandise?

Anyone?

JG
 
What do they define as "purchases"? I know some here have bought penfed CDs and it looked like they were treated by some of the credit card companies as a purchase. The context in those cases was whether you owed interest immediately as if you were taking a cash advance.
 
I'm in the same boat. It sure was nice when you could buy US bonds with a credit card. Last year I used one of the checks they always send you with your current card with a low interest rate. I used the check to pay off a big chunk of my mortgage and then transfered the balance to a 0% card.

I just throw the card in a drawer and then make sure I pay it off before the interest starts. Of coarse I'm planning on just transfering that balance to another card and then canceling the current card.

Every little bit helps.
 
I didn't see that it was a current card. I seem to usually get the balance transfer deals. I guess you could use the cards for your routine expenses and then that would free up some cash. You could stock up on some things that you normaly use.
 
Well, thanks y'all. I have maxed out my provided
CC "checks" and balance transfer deals at -0-% APR.
Made a lot of money. Now though, they want me to actually buy something. Not quite so attractive.
OTOH, I was planning on buying a boat (except
for home improvement stuff, no other big purchases
coming up). Maybe I will just go ahead and buy now
as it appears I would have to finance at least part of the purchase anyway. This would give me over a year to work
out the details (at -0-% interest). The boat is a must, so maybe that is
the answer.

JG
 
Hello my good friends.  Looking for ideas here.

I have a couple of credit cards in hand that are giving me
-0-% APR into 2006.  However, they are very clear that this is only good for "purchases".  How can I convert that credit into income producing invested funds
without actually buying merchandise?

Anyone?

JG
Click to expand...

Purchase pre-paid Visa gift cards (look online for these), then take a 'cash advance' against the pre-paid Visas at a bank, or if the gift card you purchase provides you with a PIN, simply visit your friendly local ATM.
 
sneaky, sneaky, Marshac! Me likey! There must be some limit, though, right? Otherwise I got a ten grand offer the other day....
 
sneaky, sneaky, Marshac!  Me likey!  There must be some limit, though, right?  Otherwise I got a ten grand offer the other day....
Click to expand...

Depends on the bank selling the Visa gift cards, but usually they are limited to $500-$1000 per card... who cares though, just buy 10. Even better if your card has something like 5% cash back ;)
 
I like the idea. I've even decided I would pick up enough interest to reward me for the nuisance factor
(I loved those convenience checks). Will report back
on how this "experiment" worked out. Thanks
Marshac!

JG
 
Made me think of a friend of my DW ... she started out selling used kids clothing on EBAY. Was so successful she started shopping the clearance racks in the mall and repackaging the goods on EBAY at a profit. The hubby put his foot down when the basement filled with "stock".

She claims a living can be made this way (I claim this is WORK) ... but charging the "stock" at 0% would certainly help.

Enjoy!
 
Marshac, the card I currently use (dividend MC) for everything gives me 5% cash back on gas and groceries, and 1% on everything else (and no annual fee, a must) do you know a card that gives 5% on everything? Geez, in every financial category where I thought I was the smart guy, some one on this board shows me I'm just a young grasshopper! ;)

I am going to look into your idea there, though! I just want to see (like JG) if it's worth the work! I love free money.
 
I have a friend who runs a small business and he
has been "triple dipping". First he buys all of his
inventory on his credit cards, This gives him max. rewards and free miles. Any availability at -0-%
which is left over is taken out and invested in a liquid account. He also times his purchases to give himself the max. days until he has to pay off the CC balance.
He has actually studied this.

I have another friend with an active eBay biz. Claims he makes a lot of money buying at auctions and flea markets. I believe it. His house is filled with
"inventory". Too much like work to suit me.

The "experiment" was a failure. My main -0-% offer was
through Amex. I could buy Amex. gift cards and that would count as a purchase, but they couldn't be converted into cash. I couldn't locate anyone who would take an Amex card to buy a Visa or MC gift card
which could then be turned into a cash advance or withdrawn
by ATM. Great idea. Didn't work in my case.

JG
 
I believe there was a Discover card that had a 5% promo period (they still do, but now you have to shop at specific stores), but you are correct, most cards are usually <3%..... and for some of those, it's only 3% if you carry a balance (ie: the Chase 'Cash Builder' card).

I love cash back... I usually get my checks in December, and shopping for Christmas presents with 'free' money is a whole lot more fun...maybe that's what it feels like to shop like a Hilton? :)
 
The "experiment" was a failure.  My main -0-% offer was
through Amex.
Click to expand...

You didn't seem to be the type that would give up so easily!

Take your pick and try again-

http://www.creditcardguide.com/lowintro.html

BTW- these are balance transfer deals, so simply do a balance transfer to an already paid-off card, and then request a credit refund from your card issuer once the balance transfer credits post to the account. They should cut you a check.... easy money =)
 
Maybe, but it's starting to look like a lot of hassle for the
amount of interest I would pick up. Remember, I already have a mountain of credit available to me.
Plus, on new cards I need a large credit line and a long
period at -0-% APR to make it worthwhile. $5,000 for
6 months won't do it for me.

JG
 
Check this out- Visa makes it easy! Shop for the best gift card deal :D

http://usa.visa.com/personal/cards/...gift_card_how.html|Purchase a Visa Gift card
Click to expand...

Marshac,

I just checked 8 of the banks listed at the website above and all of them say in their FAQ section that the VISA GiftCard cannot be used at an ATM.

Is there still a way to get cash out of the gift cards from these same banks?

Or, is it a matter of : keep looking for a bank that issues these GiftCards but still allows them to be used at an ATM to withdraw cash against them or allows you to bring the GiftCard into a branch to withdraw cash against them?

Dante

:) :) :)
 
BTW-

I don't think anyone has said this yet, so I will... these gift cards are a way of maxing out your credit card rewards (air miles, etc) at minimal cost to you. Buy the gift card, get the miles, cash out, repeat. Sure, you do pay some transaction costs (cost of the gift card), but at least for airline miles, it makes up for it.
 
Lord have mercy! You guys play too fast and loose
for me.  My one experience with using a low interest
rate "lifetime" loan at 3.9% to buy some equipment
for my laundry semi-backfired when I accidentally used
the CC to make a regular purchase.  Found out that
payments are applied to the loan first.  Fortunately
I put the card in my safe and won't use it again
until the loan is paid off.

Don't you worry that there is some "gotcha" out
there lying in the weeds?

Cheers,

Charlie
 
You are exactly right about 0%, new purchases, and where the payments go first. I think there was even a court case (last year maybe?) regarding the nondisclosure of this practice. Be an informed consumer, don't make new purchases, and use the credit card companies 0% trap against them for your own benefit. :)
 
Hello Charlie. You gotta read the fine print and ask the
right questions. I presently have about 40K
invested, which was obtained at -0-% APR. It's only
about $1200 income per year, but it's tax free
(in my case) and almost no hassle (kind of like money for
nothing). Anyway, I have picked up several thousand dollars of income this way since the -0-% APR offers
began. It is getting too difficult for me now it seems. You need
huge credit lines and long term -0-% promotions to make any real money. It's kind of fun to match wits
with the CC companies though.

JG
 
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