Another way to profit from credit cards

[saluki9]

I think most American Express cards do, but the recent offer I got was clear that no annual fee is charged. I think it's an American Express Blue card.

I just took an offer from Amex. They offered me 50,000 rewards points (2 airline tickets) if I spend $1K in the first month.

The annual fee is $150 but the first year is free and I will cancel it before the fee

 

[soupcxan]

I'm doing this scheme as well...but here's the gravy: I got another $600 from Citibank through their "credit protector" program because I moved while I was in the 30 day free trial. The program gives you two free minimum payment credits, so on my large BT card thats almost $300/month. I enrolled in the program, moved, requested the credits, then cancelled the program before they could bill me for it. Made a sweet deal even sweeter.

 

[maddythebeagle]

wow soup. way to stick it to the man

 

[Surfdaddy]

I LOVE the idea that you're all finding ways to suck money back from these parasitic CC companies!

 

[Bimmerbill]

How do I shop for a credit card(s) that will allow me to do this? Is there a CC shopping website or something?

 

[brewer12345]

How do I shop for a credit card(s) that will allow me to do this?  Is there a CC shopping website or something?

I would start with Discover and Citi. They seem to have the cheapest deals. I started with those two, and now I just wait for other solicitations for 0% BT offers to come in the mail. I got Chase a couple months ago and ETrade bank last week. I suspect that it is just a matter of time until Washington Mutual starts giving away free money, since they bought a credit card company late last year.

 

[Bimmerbill]

Thanks for the tip.

Dang, I forgot to ask how this affects one's credit score?

 

[brewer12345]

Dunno and don't care unless it precludes me from getting more 0% BT offers. Obviously if you will be looking for a mortgage, this might not be the greatest idea. I am under the impression that you can clean up your score very quickly by paying things down.

 

[REWahoo]

Is there a CC shopping website or something?

Try CreditCards.com

 

[Nords]

How do I shop for a credit card(s) that will allow me to do this?  Is there a CC shopping website or something?

There were two Citi offers (one through AT&T) and a Chase offer in the coupon section of the Sunday paper.

I'd figure that our credit score gives us three cards each with a $5000 limit and no interest until May 2007. $15K in Fidelity's 4.4% MM account for the next 11 months would yield over $600.

I wonder what that activity would do to our homeowners/car insurance rates, and how would we be able to tell?

 

[brewer12345]

There were two Citi offers (one through AT&T) and a Chase offer in the coupon section of the Sunday paper.

I'd figure that our credit score gives us three cards each with a $5000 limit and no interest until May 2007.  $15K in Fidelity's 4.4% MM account for the next 11 months would yield over $600.

I wonder what that activity would do to our homeowners/car insurance rates, and how would we be able to tell?

I'm up to $50k in BT balances with no obvious difference to HO or car insurance. And I bet they would offer you a lot more than $5k...

 

[education]

Ok Guys-

Let me get this straight. I get an offer for 0% from a cc company. I find out my line of credit and write a courtesy check for that amount. Cash it. Put it in a 6 mo or 9 mo CD.

Do I pay on this offer monthly or do I pay it off in one lump sum at the end of the time? Forgive my ignorance as I've never done a float before--but I sure do like the sound of it to pick up a little extra cash from those fat-cat companies who love to extract extra cash from me.

The Professor

 

[maddythebeagle]

well, yeah. you have to make the min. monthly payment.

 

[REWahoo]

well, yeah. you have to make the min. monthly payment.

It depends on the offer.

Let me get this straight. I get an offer for 0% from a cc company. I find out my line of credit and write a courtesy check for that amount. Cash it. Put it in a 6 mo or 9 mo CD.

Do I pay on this offer monthly or do I pay it off in one lump sum at the end of the time?

The offers vary and you need to thoroughly understand the requirements of your offer before you write that courtesy check. Some offers require no payments for the term of the offer, some require minimum payments, some require one or two purchases on the card per month, some require no purchases, etc. Read the offer very carefully and follow the rules.

I'll give you an example of what can happen. The CC I have been using for years sent me an offer of 0% for 14 months up to $20,000. No monthly payments or charges required for the offer. But....if anything was charged to the card during the 14 months or if I carried a balance on the card prior to writing the $20k convienience check (I didn't), I would then have to make minimium monthly payments and payments would be applied toward the lowest interest items first, which would mean I would be paying off the $20k first and interest would still be charged each month on any purchases.

To avoid any chance of using the card during the 14 months, I moved all recurring payments to another card...or so I thought. Sure enough, two months into the deal our quarterly pest control service "forgot" I had called them to make the change and hit my old card with an $80 charge. Gone were no payments for 14 months. I'm now paying a little over $300 per month (the minimum) and being charged about $0.65 per month in interest. Not really a big deal since I put the $20k in a mmkt account and the interest hit on the CC isn't significant. But, if I had several of these deals running simultaneously and had put the CC advances in CD's, it could be a problem.

My advice is to go slowly and don't start out doing a bunch of these until you fully understand the rules. Read, learn and understand... and don't tie up all your funds in a CD in the event something slips up on you like it did me.

 

[brewer12345]

Ok Guys-

Let me get this straight.  I get an offer for 0% from a cc company.  I find out my line of credit and write a courtesy check for that amount. Cash it.  Put it in a 6 mo or 9 mo CD.

Do I pay on this offer monthly or do I pay it off in one lump sum at the end of the time?  Forgive my ignorance as I've never done a float before--but I sure do like the sound of it to pick up a little extra cash from those fat-cat companies who love to extract extra cash from me.

The Professor

Pretty much. Just make sure you make the monthly minimum payments on schedule, and keep the money in a money market account so that you can pay it off in a flash if something goes wrong.

 

[maddythebeagle]

It depends on the offer.

rew. If you got an offer where you dont have to make payments every month, PM, I would love to sign up for that one.

 

[REWahoo]

rew. If you got an offer where you dont have to make payments every month, PM, I would love to sign up for that one.

Maddy, sorry but you won't be getting a PM from me. I went back to my original documentation and it says "no transaction fees", not "no payments. Evidently I confused it with an offer for 0% financing on Sears appliances that I took advantage of about the same time (replaced the dishwasher). That one has no payments for 1 year...and I just confirmed to be sure.

I sit corrected.

-------

Professor, see why I say you need to proceed carefully?

 

[education]

Thanks guys. The reason I asked was that 10years ago I bought a computer with a no interest deal where the amount was not due for 1 year. They were hoping I'd forget or fail to make the payment & were pissed off royally when I gave them the cash. Haven't done that since.

I'll get out my magnifying glass!!!!!!!!!!!!

The Professor

 

[cube_rat]

To REW's point in terms of reading the fine print, people need to consider utilization rates.  If the balanced transfered funds from card "A" is at the max credit limit and then you do the same for card "B" and card "C", chances are card that "B" can apply a universal default rate because card "A" and "C" are at the maximum if card "B" pulls your credit report.  Universal default could mean getting immediately slapped with interest rates at 27%, etc.

I simply do not trust credit card companies under any circumstances.  They CAN  change the rules at a whim and send you inocuous looking term change notices in 2 1/2 pt font  in the mail.  For $600 extra bucks, it's simply not worth my time nor anxious energy to manage or worry about IMHO.

 

[HFWR]

Nice avatar...

 

[cube_rat]

Nice avatar... 

It's pretty much how I feel about my job right now. I'd love to moon executive management, but unfortunately my paycheck (paycheck whore that I am) keeps me in check.

 

[HFWR]

At least we're not cheap... 8)

 

[thefed]

discover has 0% for life offers. Yes, FOR LIFE. I make 2 $1 purchases monthyl and I'm done. I have 20k on it now, and only pay the minimum. The 20k is in the bank earning 4%

 

[xmanz3]

I have a question for you regarding Emigrant Direct accounts. I have a savings account with them but I was wondering how often do you get the 4.8% interest? Is it monthly or yearly?

Thanks!

 

[eridanus]

I have a question for you regarding Emigrant Direct accounts. I have a savings account with them but I was wondering how often do you get the 4.8% interest? Is it monthly or yearly?

Thanks!

It's 4.8% yearly. It's paid monthly of course.