smooch said:So the Citi Platinum Select card has 0% APR on balance transfers and purchases for 12 months. I could purchase a 50K six month CD on this card, pay it off in 6 months and pocket the interest?
docbells said:For a good analysis on the credit card game, I enjoyed this 3 part article: http://www.mymoneyblog.com/archives/2005/01/good_credit_car_2.html
cube_rat said:Is this justin's blog??
No, but it might as well be. It looks pretty accurate.
Maddy the Turbo Beagle said:interesting site....looks like he is tracking his net worth...cant be justin's....since it has to be a lot higher
maggieddd said:But how can you take cash out of CC without paying interest on cash advances?
I see, thanksbrewer12345 said:Sometimes they will send you a check that they will treat as a balance transfer. If not, I just have them transfer the balance to my citi card (which has a zero balance). Citi then sends me a check.
maggieddd said:Just curious, how does that work out with paying taxes. Can the IRS inquire where the money came from?
thanksjustin said:Sure, tell em CC's. They get their tax money from the 1099-INT's that report the interest income from your money markets or savings accounts.
cube_rat said: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.
SLC Tortfeasor said:Sure, you have to spend some time thinking about this stuff, but if you're perusing this site you probably already obsess about money to an extent. This is a way to obsess while earning guaranteed easy money. I can see why millionaires wouldn't want to spend the time just to collect $600 or more a year of free money, but if you're a mere mortal like me, it's nothing to sniff at.
SLC Tortfeasor said:Sure, you have to spend some time thinking about this stuff, but if you're perusing this site you probably already obsess about money to an extent. This is a way to obsess while earning guaranteed easy money. I can see why millionaires wouldn't want to spend the time just to collect $600 or more a year of free money, but if you're a mere mortal like me, it's nothing to sniff at.
cube_rat said:Great call!
I've been following this thread along with justin's own CC arbitrage thing, and I'd be lying if said I haven't been tempted. I may start out small, like 5k or 10k just to get past the nervousness.
Just curious, how does that work out with paying taxes. Can the IRS inquire where the money came from?
justin said:I'm getting around $4000/yr with the balances I currently have. I'm planning on putting most of this into paying down my mortgage. It'll knock it down from 22 years remaining to 12 years remaining if I keep paying an extra $4000/yr. Not bad for paying my dozen or so CC bills on time and occasionally going after new zero % CC deals.
I did have an issue with Bank of America. I mailed them the monthly payment and it was lost/stolen in the mail or by the bozos at Bank of America. I kept trying to get the 0% rate reinstated on the balance, but was never successful. They did refund the interest charges for the 6 months of the dispute, and I ended up just paying off the balance in full a few months before the regular due date.
It was a hassle, but no more so than calling up any other entity with which I transact business. My last call to Bank of America took about 18 minutes. 17.5 minutes in menu hell and waiting, then 30 seconds of explaining the situation, getting a resolution in my favor and terminating the phone call.
xmanz3 said:Justin,
Tell me if I am correct, that means that you have approximately $80,000 on credit card debt if you are getting $4000/yr with a 5% interest.
xmanz3 said:What credit card companies are you using and where are you putting the money into?
Also, are you getting 0% interest for 12 months on all of them? When the 12 months expired, what is your plan B?
The other rumor is that your home/auto insurance rates will get pounded by the drop in your credit score. Have you seen that yet, or is it an urban legend?justin said:Plan B? I guess I'm still on plan A, which is to pay off the balances as they come due and to initiate new balance transfers. My next batch of bal xfers expire in November I believe.