0% interest on credit card balance

[MJ]

I am a MBNA cardholder and MBNA is offerring to lend consumers cash upto their available credit limit at 0% interest until June 2005 with a maximum of charge of $75.
Anyone else know about this or any other offering by other CC companies.

I spoke to them and so far I don't see any loopholes. I figure I can make over $300 interest if I borrow the max and return it when it is due.

Any thoughts?

MJ

 

[BigMoneyJim]

If you're well disciplined and are confident there are no gotchas, go for it.

Although I spent the last 3 years paying off $27k in cc and auto debt I'm not yet confident in my own discipline to take such an opportunity myself. (I doubt I'd blow the money, but I might forget about it, pay it late and owe penalty interest.) Plus I have a personal grudge against consumer credit in general at the moment.

 

[MJ]

I would like to think that discipline is built in for a frugal planning or already, ER individual.

MJ

 

[cute fuzzy bunny]

Only suggestion i have is to make sure and pay off the balance a month BEFORE its due. There seems to be a very high incidence of lost and late payments when they're made in the final month before accrued finance charges apply.

I have about six grand in home depot stuff that I dont have to make payments or interest on until the end of next july. They'll have my payment June 1.

By the way, home depot has been running some great promos...almost always have six months no pay/no int and regularly have been running the 12 month deals that I got in on. All the materials for my home remodel for free until next year...

Also, if you put in a change of address for somebody, they'll get a coupon for 10% off an invoice up to $2000, or $200 max value.

Somebody always seems to be moving to my house...

 

[John Galt]

I have had over 100K outstanding on credit cards
at promo rates, which in turn I had invested. It's
easy but you have to keep on top of it. For example,
I had a very substantial sum outstanding with a
particular card. I called to verify when the promo rate
ended. They said October 19. I wired the full amount due on the 12th. They got it, but when I got my statement they charged me interest. I called and the girl on the phone said I had the wrong date for the
expiration of the promo rate. This happened to me once before and the CC company made it right.
Assume that will happen this time also. Anyway, I'm
not paying regardless. Don't really need the card
and they won't sue me for one month's interest.
It can be a hassle though. So far, it's been worth it.

John Galt

 

[MJ]

Hey TH,
Yeh. I already found that I would have been charged interest if I would have paid the cash back by the due date of June 26 2005. Apparently I have to pay this "loan" by June 1.

 

[dm]

It seems like all the offers for 0% is for balance transfers. Since I don't have any CC balance to speak of I havn't been able to capitalize on the free use of the money. Last year I did buy some I-bonds with a credit card and did the balance transfer deal for a year. I got 1% for buying them and no interest on the new card.

I went ahead and paid off the credit card before it was due to be safe. I didn't get any new offers at that time that didn't have a balance transfer charge in the fine print.

My son's tuition will be comming up soon and I'll probably put that on a credit card with the hopes of transfering that balance to a O% card. The problem is timing it where I don't have to pay any interest on the original card.

 

[John Galt]

I have not found that the majority of the -0- % offers were balance transfers only. However, the -0- % deals seem
to have disappeared for now. Anyway, I want to put in a good word for MBNA. I've been with them 20 years
and have NEVER had any problems. I'm not kidding.
They have been perfect so far..................

John Galt

 

[MJ]

It seems like all the offers for 0% is for balance transfers.

As I stated, MBNA is offering to lend customers cash, upto their available credit at 0% interest.

 

[MJ]

Only suggestion i have is to make sure and pay off the balance a month BEFORE its due. There seems to be a very high incidence of lost and late payments when they're made in the final month before accrued finance charges apply.

I plan pay them back electronically to earn the maximum interest on their money.

 

[John Galt]

I've started paying them back electronically too, for the
same reason. It works fine as long as they give you the correct pay off date.

John Galt

 

[MJ]

I'll probably call them several times and ask to speak to a supervisor to confirm the due date.
I'll get their names for my records and to instill an incentive to provide me with an accurate date.

MJ

 

[dm]

It sounds great. I would definatly take the money and invest it till time to payoff the card. I just havn't been getting those offer's. I use discover mostly and never keep a balance. I get offers for card's all the time but in my case it always seems to be for balance transfers.

What is MBNA?

 

[John Galt]

MBNA is a major national bank. I have had several
credit cards and I had my IRA there for some time.
I would rate them AAAAA. As far as taking the
"cheap" money and reinvesting it, I have made
quite a nice amount by doing this. I am now to the point where I do not wait for them to make me an offer.
I call and inquire. Usually unless they have written you,
they can not offer anything better. However, I have found it always pays to ask. Also, I can always beat
the "best" rates listed by bankrate.com just by calling and being alert to local/new branches special offers.

John Galt

 

[MJ]

As soon as I realized what they were offering I got them to raise my available credit by another $10k.
You are right John, it pays to ask.
I called my citibank card and they currently offer a 0% balance transfer, if they still have this in 7 months , I will transfer my total MBNA balance to my citicard for another 12 month 0% interest.

Not bad for free money, now if I could get the IRS to forgive the taxes due on the interest from the 11 month 3% CD I'm putting this free money in.

MJ