Credit Tips: Citi Business Credit Card with Thankyou Points Tips

Posted On: March 15, 2007

Author: crybaby
Posted: Thu Mar 15, 2007 12:31 am
Post subject: How I maximized arbitrage and minimized FICO damage w/ citi.

I have a citi dividend select that was converted from an AT&T Universal card. It still has 5% rewards for EDP and I have received no notification that this will change. The card is about 5 years old and had a limit of $10.8k. The only current BT offer available on the card is no fee 6.9% for 12 months.

I recently applied for the CITIBUSINESS card with /Thankyou network for the $100 gift card after first purchase. This card also allows a BT for 0%, no fee anytime in the first 12 months you have the card that lasts for 12 months from the time it posts. My card came with a small limit of $4k and doesn’t report to personal credit.

I also recently opened a High Yield Savings (HYS) account that has a 5+% APY.

I called citi to discuss reallocation between business and personal cards and was pleasantly surprised to find out that you could transfer available credit from personal to business.

I moved $8k from my personal card to my business cardwhich resulted in a credit limit of $12k on the business card. I requested a check in the amount of $10,750 (just under 90%)be sent to me. I deposited the check in my HYS linked checking account, waited a week and then transferred the full amount to HYS.

I expect to net $430 before taxes for making about 26 online transactions just with CITI during the next year. It will have no effect on utilization because it is on a business account.

I’ve detailed CITI because of the unique transfer of Credit Line between personal and business, but I also do this with Chase, BOA, Advanta and AMEX to varying degrees. They each only require 14 transactions per year because I only withdraw from my HYS once per month.

I estimate a yield of about $200/hour not counting the time to type this post. In 14 months, I’ll lather rinse repeat and increase my reward to about $375/hour if BT offers are similar to now. I am in the midst of my first go-round which is why I often consider myself a credit first grader.

This process is both repeatable and scalable. Those with more courage than I do it with personal credit at the same time. I’m sure there are others on this board who are also doing it. Is anyone else ready to confess?

Author: Nemesis
Posted: Thu Mar 15, 2007 1:20 am
Post subject:

I have been doing this for many years. Unfortunately, the halcyon days of credit card arbitrage seem to be winding down. Just as I really reached a sweet spot (0% money invested at 5-6%), the companies began to change the rules. Most BTs now come with transfer fees, and those fees are starting to be uncapped.

The process is not nearly as repeatable as you think. Although I’ve used as much as $80,000 at one time, viable deals do not always present themselves, particularly in this new climate.

Do yourself a favor and open an LOC. Many companies do not allow you to BT to yourself, your checking or investment account, or in some cases, any other non credit account, without considering it a cash advance. So you’ll need to find other ways of moving the money from CCs. With an LOC, you can write yourself a check and BT from the LOC to the CC.

Author: artcubed
Posted: Thu Mar 15, 2007 1:23 am
Post subject:

I would do this, if I had higher credit limits. Currently, my highest limit is $4k, but I’m working on that.

Good to know you can do this with Citi, I have a credit card with them, as well as a checking and high-yield savings account.

Author: crybaby
Posted: Thu Mar 15, 2007 1:55 am
Post subject:

LOC is a very valuable tip. Thanks, Nemesis.

Author: sabina
Posted: Thu Mar 15, 2007 10:16 am
Post subject: Re: How I maximized arbitrage and minimized FICO damage w/ c

crybaby wrote:
Those with more courage than I do it with personal credit at the same time.

Those with more courage than you have NO time for the nickle and dime overkill gymnastics you’re so flabbergasted about.

Those with more courage than you are real arbitrageurs making real money at the board exchanges.

A useless, crappy poll, a crappy OP and a crappy time wasting nickle and dime circus.

Labels: Credit Card Thankyou Reward Points, Recovering From FICO Damage With Citi Credit Cards