credit card allows you to make money??

harveymasonsJuly 19, 2006

OK,

heres situation, one of my credit cards offered my 0% interest for 13 months. I Was going to takeout maybe 5k and pay off my other c/c debt, when I thought let em see how much they will give me (they provided conveience checks. Turns out my credit limit was 36k.

Now am I missing somethign here, why not pay off my 5kin c/c debt and take the other 31k and invest itin a year cd and get 5.75% on it? Then whenthe year is up I can just takek the money out and pay back the c/c.

What am I missing here? Just seems too easy!!

thx guys,

harvey

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western_pa_luann

Is the 0% for cash advances? Usually it is just for purchases....

    Bookmark   July 19, 2006 at 9:01AM
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clg7067

I get those 0% checks all the time. It's either 0% for a number of months, or a very low percent, like 4.99%, until you pay it off. You can write the check to anybody, including yourself.

Harvey's logic works for me.

    Bookmark   July 19, 2006 at 9:09AM
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Chemocurl zn5b/6a Indiana

Many times the cash advance carries a charge of 3% of the transaction, up to a certain amount (often it is $70 I believe), whichever is less. Does it carry a cash advance fee? Have you read the terms?

I cannot really believe it would be for $36,000, for 13 months. Sometimes the available credit is divided into 2 different amounts...part is available for cash advances, and the other part is available for purchaces.

Have you read all the fine print?

Also, they can raise the interest from 0% to whatever, if at anytime in that 13 months that you are late paying for 'anything' and they get wind of it.

They will be requiring you to make minumum monthly payment on it for 13 months too, won't they?

Keep us informed please.

I got 5,000 on cash advance (no transfer fee) for 1 year. Right now the min pay is for $60, but I have it set up to automatically take the minimun plus $250 each month from my checking. B4 the year is up, I imagine I will have another similar offer from another company in hand, and will use it to finish paying this one off.

In the meantime, I keep getting these checks for the company I have the 5,000 borrowed from. They think I will weaken, and use them, and then whatever I buy, I will pay interest on until after the 0% part is paid off. They always apply the payment to the portion of the bill carrying the lowest interest rate.

If I don't have a super offer handy when the end of the 0% draws near, I can always use the already approved line of credit home equity loan at my bank. I got approved about 3 years ago, and haven't used it yet. Once another super totally free offer comes along, I'll then use the cr cd free interest money to pay off the home equity loan.

Sue

    Bookmark   July 19, 2006 at 9:39PM
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jlhug

Just be aware that your credit score takes a hit when you use those checks. It doesn't make any difference what you do with the money; it's the fact that you have taken on more debt and have most likely made your credit used to credit available ratio higher.

It's ok if you aren't planning on applying for a mortgage or buying a car in the near future, but if you are considering either before you pay it off, don't do it. You may pay a higher interest rate as a result of this.

    Bookmark   July 20, 2006 at 7:09AM
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joyfulguy

Quite often the 0% (or low-rate) offers are for transfers that you can make from competitors' charge/credit cards only. Not including other subsidiaries of their company, of course.

And be careful not to use the low/no interest rate card to buy any other stuff, as it'll sit there racking up interest at their regular rate (and further interest on that accrued interest, of course) until the total amount of the loan on the amount transferred is paid.

Don't wait to read all of the fine print until after you apply and are approved - have them provide full information first.

Harvey's suggestion may work - but I'll bet there's a kicker in there, somewhere, to make it not work.

Or every smart financial guy in the country would be taking them up on it - sorry, gals: every smart financial gal would, as well. And there are quite a few of them.

I hope that you're all having a great day.

I drive a carnival guy around, one of whose projects is guessing age/weight.

When he was setting up shop today, he weighed himself to set it correctly, so I stepped on and had him guess my weight.

Drat - he guessed me at about 20 lb. less (that's a bit less than 10 kg.) than actual of about 195 lbs.

oh, well.

ole joyful

    Bookmark   July 20, 2006 at 3:38PM
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cathie54

joyful -
"Drat - he guessed me at about 20 lb. less (that's a bit less than 10 kg.) than actual of about 195 lbs."

That was his way of "paying you" (or "thanking you") for driving him around! It was a "feel good" gesture! haha

I remember those guys at the carnivals when I was young. I watched them read "others", but I NEVER paid them to read me. Afterall, I already knew my age and weight - so why would I PAY someone to tell me something I already knew? LOL!
Maybe I would today tho...I threw out my bathroom scale in 1979, and have never owned one since.

All I know is that if I can stand up straight, bend my head down and still see my feet, I'm OK.
If I can connect my thumb & first finger around my wrist with ease, I'm OK.
If I can wear a pair of levi's cords without hearing "ZIPZIPZIPZIP" as I walk, I'm OK. LOL!!!
(OTOH - If I go to Doc & weigh in at under 100 lbs - I should be concerned!)

"harvy..." Sounds good in theory...but I myself certainly would not take the risk. PLUS, remember, you CANNOT take out the WHOLE 36k. You'd be "over limit" immediately, slapped with fees, and then the HUGE hike on APR!

    Bookmark   July 24, 2006 at 12:03PM
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hardware_bum

This is done all the time harveymasons. Make sure you read a follow all the terms and conditions of the card and be sure you know what fees are charged.

Head on over to the fatwallet.com finance forum and read up on how others are doing it.

    Bookmark   July 29, 2006 at 10:36PM
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caligirl626

You Betcha I use those 0% CHECKS I get in the mail. Here's my setup:

40K - My own cash
19.3K - Chase Mastercard
20K - Discovercard
24.4K - MBNA Card
12K - AT&T Universal Card

Total: $115700

Most checks are like cash advances, and are good for a time period of 3 ~ 12 months. To keep it safe I run 3 month CD cycles. I simply write them out to ETRADE BANK From there its a snap to open up a CD (currently 5% for 3 months!!). The one I just completed netted over $1400.

Warnings:
Minimum payments close to $600/mo - must have that in mind.
Credit Score maybe affected, but with my car paid and mortgage doing fine, don't see a problem.
Fees total $200 from using the checks.
Have a usable CC for real purchases - I use a Citicard Rewards for day to day purchases.

Bottom Line: Is it worth it? Pays my property taxes. I'd say yes.

    Bookmark   July 31, 2006 at 6:07PM
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cathie54

HUMPH! I'm going to rush right over to fatwallet and also consider what "caligirl626" is doing.

And where is "harveymasons"? lol!

Not comfy with the idea. However, when I FIRST read OP's (harveymasons) post, it DID sound good (was wondering why my head was up "U-know where", & "what am I missing here").

Back to the drawingboard! haha...

    Bookmark   August 13, 2006 at 9:38AM
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