Blank Checks From Multiple Credit Cards

[RetiredGypsy]

I just got a stack of promotional offers on 0% APR for either personal loans or credit card balance transfers.

I figured I could play the odds and max out all my cards as personal loans with 0%, stick them in CDs for the term of the offer, then pay them back in full with a few hundred in interest earned in my favor. I guess they all figured on this because none were willing to drop the 3-5% fee.

I've never owned more than a couple credit cards before, but last year there were offers too good to pass up ($175 back on $500 spent, double percentage rewards for the first year, things like that), so I took advantage where I could. I guess they're all just trying their best to get those rewards back in fees now.

 

[Texas Proud]

Check carefully..... some charge a fee for getting cash... 3% to 5%.... kinda ruins your return...


Also, you still have to pay the minimum monthly payments... so you need to have cash for that...


Finally, if you mess up you have to pay the interest for the full term on some of these... I know when I bought my furniture with 0 interest... they were calculating interest the whole time... when it got paid off they credited the account... but it was like $3,000 for just under $6,000 in purchases.... so, miss the date and you still have a $3,000 bill to pay...

 

[RetiredGypsy]

I asked about the fee even for using it as cash, the fee still applied. I told them it wasn't worth it unless the fee was dropped. I wasn't worth it to them unless the fee was applied. So they win this round.

 

[Sunset]

I don't like getting those as I fear someone could steal the mail and use them. Now if they would send some with 0 fee and 0 interest for a year, I'd be happy to use them.

 

[athena53]

I don't like getting those as I fear someone could steal the mail and use them. Now if they would send some with 0 fee and 0 interest for a year, I'd be happy to use them.

And whatever cashback or loyalty points, too, just as if they were purchases! (Never used one, wish they'd quit sending them.)

 

[audreyh1]

You can opt out. There is contact information on the letter they send you with the blank checks.

 

[Sue J]

I don't like getting those as I fear someone could steal the mail and use them. Now if they would send some with 0 fee and 0 interest for a year, I'd be happy to use them.

This is why we keep the shredder handy.

 

[RetiredGypsy]

Now if they would send some with 0 fee and 0 interest for a year, I'd be happy to use them.

It seems like as many people go through life with CC debt, it wouldn't be such an issue for the rare exception for people who call and ask for the initial fee to be waived, especially when they're charging 14-16+% interest after the promotion.

And whatever cashback or loyalty points, too, just as if they were purchases! (Never used one, wish they'd quit sending them.)

You would think, right? Especially if they're going to charge a 3-5% fee just to let you use their generous offer.

 

[jazz4cash]

This is why we keep the shredder handy.

I think Sunset meant they could be stolen from the mail.

Navy Federal sometimes offers 0 fee and 0% for 12 mos around March or April.

 

[GrayHare]

You can opt out. There is contact information on the letter they send you with the blank checks.

I did that and it stopped them coming - for a few months.

 

[audreyh1]

I did that and it stopped them coming - for a few months.

Well that's annoying!

 

[6miths]

Yes these get shredded on arrival. A pretty transparent money grab but I'm sure some try to use them to advantage and I suppose in some instances they could work depending on the terms.

 

[Katsmeow]

Yes these get shredded on arrival. A pretty transparent money grab but I'm sure some try to use them to advantage and I suppose in some instances they could work depending on the terms.

They can work. We did one of these last year in order to shift income from last year to this year. I was careful in looking for the right balance transfer. It had to be one with no fee charged. Note that even if a fee been charged it can still work to do this if you make more doing it (even with the fee) than not doing it.

The reason we did it was that we wanted to reduce our taxable income for last year and didn't have the same concern for this year (this year we are in the same tax bracket in any event). Yes, we had to pay 2 months of payment on the balance transfer which was fine.

Worked out fine (we have already repaid the balance transfer once we were into this year).

 

[6miths]

Yes I can imagine ways it could work.

 

[jazz4cash]

I get several offers including 2 every month from BofA. I've used them in the past to pay off higher rate debt that saved more than the cost. You have to really read the fine print. The BofA checks revert to 16 pct at the end of the promo period but if you call the bank to arrange a transfer it goes to 7 pct when the promo ends!

 

[tessaduncan]

Chase Slate - no transfer fee on 0% balance transfer. I've been rolling over the same 15K for years.

 

[Sunset]

I think Sunset meant they could be stolen from the mail.

Navy Federal sometimes offers 0 fee and 0% for 12 mos around March or April.

Yes that's what I meant, and I we have 2 shredders, empty them into a big bag and later put the shredded paper in the bottom of the kitchen garbage to soak up juices. Nobody is going to tape those back together.

 

[skipro33]

I used one of those checks as a cash advance on my solar tax credit when I installed solar. Solar tax credit was $8,000, but wouldn't hit my bank account until April at the earliest. Solar was installed and paid for in July. Out came the check to pay for the solar and when my tax refund arrived, I paid it back. This also held off until the next year when I would have to take a draw on my IRA to pay off the rest of the solar and this check.

 

[UpAnchor]

Yes that's what I meant, and I we have 2 shredders, empty them into a big bag and later put the shredded paper in the bottom of the kitchen garbage to soak up juices. Nobody is going to tape those back together.

You're probably right. I take a bit different approach. Each shredder bin's contents gets divided into two piles. One goes into this week's garbage - the other half goes in next week's. I'd like to see them tape those together as well.