Can I get a lower fee in a 0% BT by calling my credit card company? (cont'd.)
Guest: bullwinkle29
Post subject: Can I get a lower fee in a 0% BT by calling my credit card company?
Posted: Wed Mar 22, 2006 8:28 pm
sometimes you can, if you have been a good loyal customer. i know amex has been good to us
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Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Mar 22, 2006 9:57 pm
BT FEE IS NOT REQUIRED
ESPECIALLY 3% NO LIMIT
THAT IS A JOKE!!!
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Guest: Ira
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Mar 22, 2006 11:52 pm
Oops! I missed that. For 9 months you might make less than $100.00, but if you sit down and do the math you might just about break even. I'd walk away from it. There are much better offers out there.
Example: Shell MasterCard from CitiBank is now offering BTs at 1.99% for one year, no balance transfer fee. They also doubled my credit limit, even though I never asked them to do so. That's about as good as it gets these days.
_________________
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: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Thu Mar 23, 2006 10:39 am
I ran the numbers and the results look like this (yes--they're hard to read...)
Date Min payment CC Balance CC Interest Savings Net Interest Total Tax Owed Gross Interest
March 2006 $0.00 $20,600.00 $0.00 $20,000.00 $0.00 $0.00 $0.00
April 2006 $412.00 $20,188.00 $0.00 $19,649.55 $61.55 $0.00 $78.90
May 2006 $403.76 $19,784.24 $0.00 $19,308.27 $62.48 $0.00 $80.11
June 2006 $395.68 $19,388.56 $0.00 $18,972.00 $59.42 $0.00 $76.18
July 2006 $387.77 $19,000.79 $0.00 $18,644.56 $60.33 $0.00 $77.34
August 2006 $380.02 $18,620.77 $0.00 $18,323.83 $59.29 $0.00 $76.01
September 2006 $372.42 $18,248.35 $0.00 $18,007.80 $56.39 $0.00 $72.29
October 2006 $364.97 $17,883.38 $0.00 $17,700.09 $57.26 $0.00 $73.41
November 2006 $357.67 $17,525.71 $0.00 $17,396.89 $54.47 $0.00 $69.83
December 2006 $350.51 $17,175.20 $0.00 $17,101.69 $55.32 $0.00 $70.92
So with the above scenario, borrowing $20,000 with a 3% ($600) fee and investing the proceeds at 4.8% for 9 months, assuming a 2% repayment each month from those proceeds, you wind up with $674.99 in interest received less the $600 fee for an apparent profit of $74.99.
BUT you have to pay taxes on that $674.99. Suppose your tax rate is 25%. Then you wind up with $526.49--and after subtracting the $600 fee you've got a loss. Plus I haven't figured in the fact that you'd be paying purchase interest rates on the $600 fee...and that you'd actually have less time to use the offer because you have to get payments in and out before the due dates and must pay off before the end date.
Interesting exercise...
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Board Monitor
Board Monitor/ Administrator
Posted: Thu Mar 23, 2006 11:02 am
Quote:
Recently I have recieved quite a few 0% Convenience Checks (Balance Transfer) offers from my existing Credit Card Companies. The Zero percent offers are good for as long as nine months. I get all excited about all the Interest Income (after depositing the checks) I can make during the nine month period UNTIL I SEE THE BALANCE TRANSFER FEE!
Greetings and welcome to the board! Which credit card company are you talking about that has no cap on their balance transfer fee? I know Chase has some offers that don't have a cap.
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
Sign up for our free monthly e-mail newsletter!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Thu Mar 23, 2006 9:46 pm
Board Monitor wrote:
Quote:
Recently I have recieved quite a few 0% Convenience Checks (Balance Transfer) offers from my existing Credit Card Companies. The Zero percent offers are good for as long as nine months. I get all excited about all the Interest Income (after depositing the checks) I can make during the nine month period UNTIL I SEE THE BALANCE TRANSFER FEE!
Greetings and welcome to the board! Which credit card company are you talking about that has no cap on their balance transfer fee? I know Chase has some offers that don't have a cap.
MBNA is "TEST MARKETING IT"
US BANK tries to give it to spouse
3% NO MAX IS JUST WRONG
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: unemployedandbored
Posted: Tue Apr 04, 2006 9:21 am
These were all Chase offers. ZERO PERCENT with a 3 percent fee, but with a $50.00 maximum for six months.
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: Can I get a lower fee in a 0% BT by calling my credit card company?
Posted: Wed Mar 22, 2006 8:28 pm
sometimes you can, if you have been a good loyal customer. i know amex has been good to us
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Wed Mar 22, 2006 9:57 pm
BT FEE IS NOT REQUIRED
ESPECIALLY 3% NO LIMIT
THAT IS A JOKE!!!
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: Wed Mar 22, 2006 11:52 pm
Oops! I missed that. For 9 months you might make less than $100.00, but if you sit down and do the math you might just about break even. I'd walk away from it. There are much better offers out there.
Example: Shell MasterCard from CitiBank is now offering BTs at 1.99% for one year, no balance transfer fee. They also doubled my credit limit, even though I never asked them to do so. That's about as good as it gets these days.
_________________
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: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Thu Mar 23, 2006 10:39 am
I ran the numbers and the results look like this (yes--they're hard to read...)
Date Min payment CC Balance CC Interest Savings Net Interest Total Tax Owed Gross Interest
March 2006 $0.00 $20,600.00 $0.00 $20,000.00 $0.00 $0.00 $0.00
April 2006 $412.00 $20,188.00 $0.00 $19,649.55 $61.55 $0.00 $78.90
May 2006 $403.76 $19,784.24 $0.00 $19,308.27 $62.48 $0.00 $80.11
June 2006 $395.68 $19,388.56 $0.00 $18,972.00 $59.42 $0.00 $76.18
July 2006 $387.77 $19,000.79 $0.00 $18,644.56 $60.33 $0.00 $77.34
August 2006 $380.02 $18,620.77 $0.00 $18,323.83 $59.29 $0.00 $76.01
September 2006 $372.42 $18,248.35 $0.00 $18,007.80 $56.39 $0.00 $72.29
October 2006 $364.97 $17,883.38 $0.00 $17,700.09 $57.26 $0.00 $73.41
November 2006 $357.67 $17,525.71 $0.00 $17,396.89 $54.47 $0.00 $69.83
December 2006 $350.51 $17,175.20 $0.00 $17,101.69 $55.32 $0.00 $70.92
So with the above scenario, borrowing $20,000 with a 3% ($600) fee and investing the proceeds at 4.8% for 9 months, assuming a 2% repayment each month from those proceeds, you wind up with $674.99 in interest received less the $600 fee for an apparent profit of $74.99.
BUT you have to pay taxes on that $674.99. Suppose your tax rate is 25%. Then you wind up with $526.49--and after subtracting the $600 fee you've got a loss. Plus I haven't figured in the fact that you'd be paying purchase interest rates on the $600 fee...and that you'd actually have less time to use the offer because you have to get payments in and out before the due dates and must pay off before the end date.
Interesting exercise...
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Board Monitor
Board Monitor/ Administrator
Posted: Thu Mar 23, 2006 11:02 am
Quote:
Recently I have recieved quite a few 0% Convenience Checks (Balance Transfer) offers from my existing Credit Card Companies. The Zero percent offers are good for as long as nine months. I get all excited about all the Interest Income (after depositing the checks) I can make during the nine month period UNTIL I SEE THE BALANCE TRANSFER FEE!
Greetings and welcome to the board! Which credit card company are you talking about that has no cap on their balance transfer fee? I know Chase has some offers that don't have a cap.
_________________
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314
Sign up for our free monthly e-mail newsletter!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Thu Mar 23, 2006 9:46 pm
Board Monitor wrote:
Quote:
Recently I have recieved quite a few 0% Convenience Checks (Balance Transfer) offers from my existing Credit Card Companies. The Zero percent offers are good for as long as nine months. I get all excited about all the Interest Income (after depositing the checks) I can make during the nine month period UNTIL I SEE THE BALANCE TRANSFER FEE!
Greetings and welcome to the board! Which credit card company are you talking about that has no cap on their balance transfer fee? I know Chase has some offers that don't have a cap.
MBNA is "TEST MARKETING IT"
US BANK tries to give it to spouse
3% NO MAX IS JUST WRONG
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: unemployedandbored
Posted: Tue Apr 04, 2006 9:21 am
These were all Chase offers. ZERO PERCENT with a 3 percent fee, but with a $50.00 maximum for six months.
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 4:59 PM
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