Tips on Making Money Off Your Credit Cards
Author: Smart Investor
Posted: Wed Jul 16, 2003 3:04 pm
Post subject: ...
Being of good credit and sound mind, I most often allow the credit card issuers to pay ME to use their money. Am I in a league of my own?
First, I am considered a "convenience" customer by the banks. This means I pay off balances monthly while taking advantage of whatever offers come my way. The YOU PAY ME offer is as follows:
Use your entire credit limit in a no transaction fee, full grace period (treated as a purchase) balance transfer check. The offer is not written this way, but it actually works this way. Always read the fine print and call if you are not sure. If you have a $30,000 credit limit then you have up to 60 days (depending on cycle and date of the balance transfer check cashing) to use the banks $30,000.00 for free. Putting it into a guaranteed interest-bearing account allows you to earn money on their money. When money market and no-penalty CDs were paying interest rates in the teens, this was quite an offer from the credit card bank! It's hardly worth the effort today, but the principle is valuable!
Smart Investor
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Eugene
Posted: Wed Jul 16, 2003 10:14 pm
Post subject:
What world do you live in, Smart Investor? Can you let me in?
Short term CDs did not pay interests "in the teens" since, like, when? 80s? (Mostly because of high inflation, which is not pretty). I don't think money market accounts even existed then.
Grace perod balance transfer checks have been gone for years as well, as far as I know.
And grace period themselves are mostly in 20 to 25 days territory, so good luck getting 60 day float. It's more like 50 days maximum now even on purchases.
Author: Ira
Posted: Thu Jul 17, 2003 7:31 pm
Post subject: Making Credit Cards Work For You
Eugene, he DID say that it's hardly worth the effort today. You have to read the whole thing (g)!
Smart Investor, I've been singing this song on this board for a few years now. I go one further, though. I dote on zero interest, no transfer fee, intro balance transfer offers. In one case I took a balance transfer of $9,500.00 against a $10,000 limit and immediately put it in an account offering 2.2% (it's since gone 'way down!) for 9 months. I made about $200.00 in interest. I have another offer which allowed me to put6 $17,000 in an interest bearing account for a year. Of course I never use these cards for anything else, and since we're talking 0% finance charges, all I pay is the required monthly minimum until the offer expires, at which time I will withdraw the principal fro the interest bearing account and pay off the credit card. Not too bad!
Author: 2LTAviator
Posted: Fri Oct 10, 2003 5:18 pm
Post subject: Wow...
Thanks, Ira and smart investor. I guess I've been looking for someone to put that in understandable english. I did the math on excel and w/ 10k into my current MM account, I could make $115 in 12 months (only 1.27% yeild) on they CC company's money.
The challenge now lies in finding the highest yeild account and the longest 0% offer!
Author: Ira
Posted: Fri Oct 10, 2003 11:29 pm
Post subject: Making Credit Cards Work For You
Try ING Bank (www.ingdirect.com) . They're currently paying 2.0% on savings and a very small premium for a 1 year CD
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Wed Jul 16, 2003 3:04 pm
Post subject: ...
Being of good credit and sound mind, I most often allow the credit card issuers to pay ME to use their money. Am I in a league of my own?
First, I am considered a "convenience" customer by the banks. This means I pay off balances monthly while taking advantage of whatever offers come my way. The YOU PAY ME offer is as follows:
Use your entire credit limit in a no transaction fee, full grace period (treated as a purchase) balance transfer check. The offer is not written this way, but it actually works this way. Always read the fine print and call if you are not sure. If you have a $30,000 credit limit then you have up to 60 days (depending on cycle and date of the balance transfer check cashing) to use the banks $30,000.00 for free. Putting it into a guaranteed interest-bearing account allows you to earn money on their money. When money market and no-penalty CDs were paying interest rates in the teens, this was quite an offer from the credit card bank! It's hardly worth the effort today, but the principle is valuable!
Smart Investor
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Eugene
Posted: Wed Jul 16, 2003 10:14 pm
Post subject:
What world do you live in, Smart Investor? Can you let me in?
Short term CDs did not pay interests "in the teens" since, like, when? 80s? (Mostly because of high inflation, which is not pretty). I don't think money market accounts even existed then.
Grace perod balance transfer checks have been gone for years as well, as far as I know.
And grace period themselves are mostly in 20 to 25 days territory, so good luck getting 60 day float. It's more like 50 days maximum now even on purchases.
Author: Ira
Posted: Thu Jul 17, 2003 7:31 pm
Post subject: Making Credit Cards Work For You
Eugene, he DID say that it's hardly worth the effort today. You have to read the whole thing (g)!
Smart Investor, I've been singing this song on this board for a few years now. I go one further, though. I dote on zero interest, no transfer fee, intro balance transfer offers. In one case I took a balance transfer of $9,500.00 against a $10,000 limit and immediately put it in an account offering 2.2% (it's since gone 'way down!) for 9 months. I made about $200.00 in interest. I have another offer which allowed me to put6 $17,000 in an interest bearing account for a year. Of course I never use these cards for anything else, and since we're talking 0% finance charges, all I pay is the required monthly minimum until the offer expires, at which time I will withdraw the principal fro the interest bearing account and pay off the credit card. Not too bad!
Author: 2LTAviator
Posted: Fri Oct 10, 2003 5:18 pm
Post subject: Wow...
Thanks, Ira and smart investor. I guess I've been looking for someone to put that in understandable english. I did the math on excel and w/ 10k into my current MM account, I could make $115 in 12 months (only 1.27% yeild) on they CC company's money.
The challenge now lies in finding the highest yeild account and the longest 0% offer!
Author: Ira
Posted: Fri Oct 10, 2003 11:29 pm
Post subject: Making Credit Cards Work For You
Try ING Bank (www.ingdirect.com) . They're currently paying 2.0% on savings and a very small premium for a 1 year CD
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 10:03 PM
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