How to Take Advantage of 0% APR on Your Credit Card
Guest: DavidPalmer
Post subject: How to Take Advantage of 0% APR on Your Credit Card
Posted: Sun Mar 05, 2006 12:18 am
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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Guest: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sun Mar 05, 2006 10:10 am
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.
_________________
Do not let what you cannot do interfere with what you can do.
Ira
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Guest: maddybeagle
Credit Expert (100+ Posts)
Posted: Sun Mar 05, 2006 10:36 am
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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Guest: credithelp
Credit Expert (100+ Posts)
Posted: Sun Mar 05, 2006 12:43 pm
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.
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Guest: JoyJoy
Posted: Sun Mar 05, 2006 3:13 pm
One would definitely have to be organized and not miss any detail to do this! I guess my way of dividing the balance of BTs on the card x 12 and paying the monthly payment for 12 months is being wasteful?
I remember when I was in high school (eons ago lol) and the home economics teacher told us that we could make money by borrowing it, putting it in a savings account and paying the amount due each month until the balance was paid. There wasn't such a thing then as 12 month 0% interest loan, but the borrowed funds back then helped one to get started with a savings plan. Some of the people who did this years ago say they still have that same $100 or $1000 in that account all of these years plus more and that is how they were able to start saving. This sounds pretty much like that advice.
So when doing a BT to a savings account, for instance, you wouldn't call the company and have them initiate the BT but you would use one of the checks they send and deposit your BT into the bank yourself correct?
_________________
J~J
Guest: JaneiR36
Credit Expert (100+ Posts)
Posted: Sun Mar 05, 2006 3:48 pm
JoyJoy, it's generally a matter of preference. I just made a similar request online with Citibank. They will send me a check in the mail (the original checks they sent me with my account opening have long expired). I'm using this first money to fund my Roth IRA for 2005. I'm not yet quite comfortable with transferring 0% money into my bank acct purely for savings
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: How to Take Advantage of 0% APR on Your Credit Card
Posted: Sun Mar 05, 2006 12:18 am
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!
Guest: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Sun Mar 05, 2006 10:10 am
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.
_________________
Do not let what you cannot do interfere with what you can do.
Ira
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: maddybeagle
Credit Expert (100+ Posts)
Posted: Sun Mar 05, 2006 10:36 am
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!
Guest: credithelp
Credit Expert (100+ Posts)
Posted: Sun Mar 05, 2006 12:43 pm
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!
Guest: JoyJoy
Posted: Sun Mar 05, 2006 3:13 pm
One would definitely have to be organized and not miss any detail to do this! I guess my way of dividing the balance of BTs on the card x 12 and paying the monthly payment for 12 months is being wasteful?
I remember when I was in high school (eons ago lol) and the home economics teacher told us that we could make money by borrowing it, putting it in a savings account and paying the amount due each month until the balance was paid. There wasn't such a thing then as 12 month 0% interest loan, but the borrowed funds back then helped one to get started with a savings plan. Some of the people who did this years ago say they still have that same $100 or $1000 in that account all of these years plus more and that is how they were able to start saving. This sounds pretty much like that advice.
So when doing a BT to a savings account, for instance, you wouldn't call the company and have them initiate the BT but you would use one of the checks they send and deposit your BT into the bank yourself correct?
_________________
J~J
Guest: JaneiR36
Credit Expert (100+ Posts)
Posted: Sun Mar 05, 2006 3:48 pm
JoyJoy, it's generally a matter of preference. I just made a similar request online with Citibank. They will send me a check in the mail (the original checks they sent me with my account opening have long expired). I'm using this first money to fund my Roth IRA for 2005. I'm not yet quite comfortable with transferring 0% money into my bank acct purely for savings
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 12:13 PM
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