How to Maximizing Balance Transfer Offers
Author: nycreditjunkie
Posted: Fri Oct 14, 2005 10:55 pm
Post subject: Strategies to maximize 0% BT offers for bank deposits?
I have played the 0% game in 8-10K increments here and there back when I had a car payment, but haven't in a while.
I recently received a very clean 15 month 0% offer on a card we already have with $20K limit - no fees involved. Card is Plat MC with USAA - well known for straight dealing, and we are longtime customers with everything from insurance to IRA accts. The offer is good till 11/15/05 and is valid up to whatever our credit line is and we have a check that we can deposit right to ING. Just on a lark I called to see if I could increase credit line. They don't tell you a maximum limit and make you pick something, so I asked for $50K - this was no problem over the phone.
At current interest rates, I'm seeing some substantial profit potential here. I'm thinking of doing a transfer in early Nov, then holding in savings 2.5 months at 3.4-3.5%, and then converting to a 1-year CD at 4.2-4.5% under the hope that rates are even higher 2.5 months from now. (today's inflation numbers should help that) This nets roughly $2000-$2500 over 15 months.
This experience has really piqued my interest on a few topics.
First, I regret not asking for more credit to milk this deal. We have about $75K on deposit with USAA, including some old IRA rollovers, after tax investment accounts, checking, and savings. Married with a house and spotless credit/payment history. We have had the USAA card about 5 years, and combined annual income is ~$200K base salary and $25-$50K in bonuses and consulting income that varies - I'm not sure they factor that extra part in. Liabilities are ~$3K mortgage payment, $500 car lease (0.6%) and $150 on consolidated dirt cheap student loan rate; otherwise debt free. What should I have asked for in a credit limit given these circumstances? Would $100K have been possible?
Second, since I'm planning to coordinate one deal, I wouldn't mind doing some more at the same time. I have 4 cards with Citibank - Choice, Plat Select, AT&T and Dividends. Limits range from $10-$15K - haven't ever asked for increases. I will probably make Dividends my primary card and in the process change to the points card to avoid $300 cashback limit, but I have the other three all sitting around. The only thing I do with them is once in a while they all get $20 statement credits if I use them within a month, so I do that for $20 of gas when it happens. Not terribly productive compared to 0% deals.
Am I likely to have success extracting some 0% deals from Citibank on existing cards? I assume I should attempt before doing the $50K check on our USAA card? What kind of luck are people having with Citibank doing this? With limits of $10-$15K on these cards, should I ask for increases with 0% BT offer? Or should I just apply for a new card I don't yet have with them? I want to maximize available money to deposit if I do this - much less that $10K/12 months/0% is not really worth the hassle to me.
Are there other 0% deals from other banks that I am likely to get a good credit line on before taking the $50K deal with our financial situation? I don't have any cards outside USAA and Citibank at this time. But it's not really worth the trouble to get another card with intro 0% but < $10K limit, which has sometimes been my experience in the past.
Also, is it easy to just ask for a check that we can write to ourselves/cash from other banks? In the past, I have either fabricated a large balance on one of our no-fee cash advance cards we have between USAA/credit union, but this still incurs a few days of interest charges at 10-12% interest. Alternatively, I once simply created a huge credit balance by having a balance transfer check sent to a card with no balance. But the cleanest way is just a check I can cash and open up a CD with, and that would be preferable.
Any other thoughts or creative ideas are welcome!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: maddybeagle
Posted: Sat Oct 15, 2005 9:12 am
Post subject: How to Maximizing Balance Transfer Offers
Citibank has no problem with sending you a check in your name. It is now an option in the online bt application.
I also heard of people using their debit card number for a bt so it goes right into a bank account (I will probably try that once I get a card---just applied for one with a small balance at a local bank separate from regular checking). I have also transferred to another card and asked that card for a credit balance--that takes a little time). Citibank and Discover dont mind issuing a credit within a few weeks. Some other banks dont like this and may want to sit on the money for awhile.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: MadDuck
Posted: Sat Oct 15, 2005 2:37 pm
Post subject: Balance Transfer Offers
Quote:
I also heard of people using their debit card number for a bt so it goes right into a bank account
smart smart smart. Are we just smart, or the credit card companies dumb? Yet another fine way of outmaneuvering. Most companies though allow a balance transfer check to go right into your checking. But make sure its not a cash advance check (the 0% deal does not apply)! Some, ie.MBNA, will do an ACH transfer right into your checking.
Author: Polonius
Posted: Sat Oct 15, 2005 2:41 pm
Post subject:
There are a few banks that won't accept a payment that exceeds the balance due by a great amount--the check is returned to the sender. Some have mentioned that here. I haven't experienced that myself.
I finess the deals by doing the balance transfer to banks that allow purchase checks for no fee (like my accounts with Capital One). I withdraw the funds first by a purchase check, then do a valid balance transfer, then withdraw the funds again. That never raises any problems with the banks since you never go to a credit balance and you are always paying off an existing balance.
As far as getting 0% deals on existing cards, they're pretty rare in my experience. I have six Citibank cards. I've never had such an offer on my AAdvantage and Driver Edge cards and Sears cards. I've gotten one 0% offer on my AT&T card. I get nice offers on my two converted Mellon cards, but not 0%. Lately the offers I do get on all these six cards have had no balance transfer fees. Limits vary from $4000 to $42,900 on these cards. No one to know what limit a bank will approve.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Fri Oct 14, 2005 10:55 pm
Post subject: Strategies to maximize 0% BT offers for bank deposits?
I have played the 0% game in 8-10K increments here and there back when I had a car payment, but haven't in a while.
I recently received a very clean 15 month 0% offer on a card we already have with $20K limit - no fees involved. Card is Plat MC with USAA - well known for straight dealing, and we are longtime customers with everything from insurance to IRA accts. The offer is good till 11/15/05 and is valid up to whatever our credit line is and we have a check that we can deposit right to ING. Just on a lark I called to see if I could increase credit line. They don't tell you a maximum limit and make you pick something, so I asked for $50K - this was no problem over the phone.
At current interest rates, I'm seeing some substantial profit potential here. I'm thinking of doing a transfer in early Nov, then holding in savings 2.5 months at 3.4-3.5%, and then converting to a 1-year CD at 4.2-4.5% under the hope that rates are even higher 2.5 months from now. (today's inflation numbers should help that) This nets roughly $2000-$2500 over 15 months.
This experience has really piqued my interest on a few topics.
First, I regret not asking for more credit to milk this deal. We have about $75K on deposit with USAA, including some old IRA rollovers, after tax investment accounts, checking, and savings. Married with a house and spotless credit/payment history. We have had the USAA card about 5 years, and combined annual income is ~$200K base salary and $25-$50K in bonuses and consulting income that varies - I'm not sure they factor that extra part in. Liabilities are ~$3K mortgage payment, $500 car lease (0.6%) and $150 on consolidated dirt cheap student loan rate; otherwise debt free. What should I have asked for in a credit limit given these circumstances? Would $100K have been possible?
Second, since I'm planning to coordinate one deal, I wouldn't mind doing some more at the same time. I have 4 cards with Citibank - Choice, Plat Select, AT&T and Dividends. Limits range from $10-$15K - haven't ever asked for increases. I will probably make Dividends my primary card and in the process change to the points card to avoid $300 cashback limit, but I have the other three all sitting around. The only thing I do with them is once in a while they all get $20 statement credits if I use them within a month, so I do that for $20 of gas when it happens. Not terribly productive compared to 0% deals.
Am I likely to have success extracting some 0% deals from Citibank on existing cards? I assume I should attempt before doing the $50K check on our USAA card? What kind of luck are people having with Citibank doing this? With limits of $10-$15K on these cards, should I ask for increases with 0% BT offer? Or should I just apply for a new card I don't yet have with them? I want to maximize available money to deposit if I do this - much less that $10K/12 months/0% is not really worth the hassle to me.
Are there other 0% deals from other banks that I am likely to get a good credit line on before taking the $50K deal with our financial situation? I don't have any cards outside USAA and Citibank at this time. But it's not really worth the trouble to get another card with intro 0% but < $10K limit, which has sometimes been my experience in the past.
Also, is it easy to just ask for a check that we can write to ourselves/cash from other banks? In the past, I have either fabricated a large balance on one of our no-fee cash advance cards we have between USAA/credit union, but this still incurs a few days of interest charges at 10-12% interest. Alternatively, I once simply created a huge credit balance by having a balance transfer check sent to a card with no balance. But the cleanest way is just a check I can cash and open up a CD with, and that would be preferable.
Any other thoughts or creative ideas are welcome!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: maddybeagle
Posted: Sat Oct 15, 2005 9:12 am
Post subject: How to Maximizing Balance Transfer Offers
Citibank has no problem with sending you a check in your name. It is now an option in the online bt application.
I also heard of people using their debit card number for a bt so it goes right into a bank account (I will probably try that once I get a card---just applied for one with a small balance at a local bank separate from regular checking). I have also transferred to another card and asked that card for a credit balance--that takes a little time). Citibank and Discover dont mind issuing a credit within a few weeks. Some other banks dont like this and may want to sit on the money for awhile.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: MadDuck
Posted: Sat Oct 15, 2005 2:37 pm
Post subject: Balance Transfer Offers
Quote:
I also heard of people using their debit card number for a bt so it goes right into a bank account
smart smart smart. Are we just smart, or the credit card companies dumb? Yet another fine way of outmaneuvering. Most companies though allow a balance transfer check to go right into your checking. But make sure its not a cash advance check (the 0% deal does not apply)! Some, ie.MBNA, will do an ACH transfer right into your checking.
Author: Polonius
Posted: Sat Oct 15, 2005 2:41 pm
Post subject:
There are a few banks that won't accept a payment that exceeds the balance due by a great amount--the check is returned to the sender. Some have mentioned that here. I haven't experienced that myself.
I finess the deals by doing the balance transfer to banks that allow purchase checks for no fee (like my accounts with Capital One). I withdraw the funds first by a purchase check, then do a valid balance transfer, then withdraw the funds again. That never raises any problems with the banks since you never go to a credit balance and you are always paying off an existing balance.
As far as getting 0% deals on existing cards, they're pretty rare in my experience. I have six Citibank cards. I've never had such an offer on my AAdvantage and Driver Edge cards and Sears cards. I've gotten one 0% offer on my AT&T card. I get nice offers on my two converted Mellon cards, but not 0%. Lately the offers I do get on all these six cards have had no balance transfer fees. Limits vary from $4000 to $42,900 on these cards. No one to know what limit a bank will approve.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 6:12 PM
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