Getting the Most Out of 0% APR Credit Cards
Author: DavidPalmer
Posted: Sun Mar 05, 2006 12:18 am
Post subject: Taking advantage of the 0 % APR
who here takes advantage of the 0 % APR. For example, making a big purchase and then say just paying alitte bit every month, to where it will be paid off by the time your interest rate kicks in. A friend of mine did that with a laptop, which was the only purchase she had on the card, and by the time the interest kicked in she had it all paid for. I wish I would have done that with my first CC I got last year, and know I have the opportunity to do it with my 2nd card, but I don't want to do it just to purchase something. Besides I graduate in May, and Im actually getting tighter with my money to make sure Im able to do all that I need once May comes.
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Author: Ira
Posted: Sun Mar 05, 2006 10:10 am
Post subject:Getting
There have been many discussions on this forum from a number of people - myself included - who play the 0% game like a violin. What we do is start with a zero balance on the card, take out a 0% balance transfer for 90-95% of the available credit limit on the card, deposit that money in the highest rate interest bearing account we can find, pay the minimum on statement every month until the rate is about to expire, and during the grace period of the last month that the rate is in effect, withdraw the remaining principal from the interest bearing account and pay it off in full. We keep the interest. I call it using OPM (other people's money) to make a profit.
In the last two years I've made $900.00 and $1,300.00 respectively doing just that. Not a whole lot of money, but it's free money. All it takes is a little bit of organizational skills and about 10 minutes a month.
Oh yes, it will cost you $75.00 for each balance transfer which is nothing compared to the money you can make. Also, it helps to have rather high limit on the card you are going to use. No sense in going through all this with a $4 or $5,000.00 limit. I would say that $10,000 is about the minimum that would make sense. My last one was with an MBNA card with a $26,000.00 limit.
Author: maddybeagle
Posted: Sun Mar 05, 2006 10:36 am
Post subject:
OP, it sounds like you are talking about 0% on purchases. I have some cards with that and some with 0% on purchaes and/or 0% on bt's. I am putting all of my utilities on my gm card right now (pay the min. payment and pay off at the end of the year). I think your point is a good one (not to use it to spend more).
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Author: credithelp
Posted: Sun Mar 05, 2006 12:43 pm
Post subject: i used
I use 0% offers all the time. I had to make sure i was organized to make sure i didnt forget a certain detail or miss a payment. I'll probably make around 500 this year, at 10 minutes a month, that's 2 hours(unless my math is wrong) which pays me $250 per hour. Not bad when it comes to credit cards.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Sun Mar 05, 2006 12:18 am
Post subject: Taking advantage of the 0 % APR
who here takes advantage of the 0 % APR. For example, making a big purchase and then say just paying alitte bit every month, to where it will be paid off by the time your interest rate kicks in. A friend of mine did that with a laptop, which was the only purchase she had on the card, and by the time the interest kicked in she had it all paid for. I wish I would have done that with my first CC I got last year, and know I have the opportunity to do it with my 2nd card, but I don't want to do it just to purchase something. Besides I graduate in May, and Im actually getting tighter with my money to make sure Im able to do all that I need once May comes.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Ira
Posted: Sun Mar 05, 2006 10:10 am
Post subject:Getting
There have been many discussions on this forum from a number of people - myself included - who play the 0% game like a violin. What we do is start with a zero balance on the card, take out a 0% balance transfer for 90-95% of the available credit limit on the card, deposit that money in the highest rate interest bearing account we can find, pay the minimum on statement every month until the rate is about to expire, and during the grace period of the last month that the rate is in effect, withdraw the remaining principal from the interest bearing account and pay it off in full. We keep the interest. I call it using OPM (other people's money) to make a profit.
In the last two years I've made $900.00 and $1,300.00 respectively doing just that. Not a whole lot of money, but it's free money. All it takes is a little bit of organizational skills and about 10 minutes a month.
Oh yes, it will cost you $75.00 for each balance transfer which is nothing compared to the money you can make. Also, it helps to have rather high limit on the card you are going to use. No sense in going through all this with a $4 or $5,000.00 limit. I would say that $10,000 is about the minimum that would make sense. My last one was with an MBNA card with a $26,000.00 limit.
Author: maddybeagle
Posted: Sun Mar 05, 2006 10:36 am
Post subject:
OP, it sounds like you are talking about 0% on purchases. I have some cards with that and some with 0% on purchaes and/or 0% on bt's. I am putting all of my utilities on my gm card right now (pay the min. payment and pay off at the end of the year). I think your point is a good one (not to use it to spend more).
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: credithelp
Posted: Sun Mar 05, 2006 12:43 pm
Post subject: i used
I use 0% offers all the time. I had to make sure i was organized to make sure i didnt forget a certain detail or miss a payment. I'll probably make around 500 this year, at 10 minutes a month, that's 2 hours(unless my math is wrong) which pays me $250 per hour. Not bad when it comes to credit cards.
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 7:35 PM
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