0% Balance Transfer - Story to Make You Cringe!

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gathermewool

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I just transferred the ~$6k I owe on both vehicles (2014 and 2015 Subies) to my new CC! Let the groaning begin!

I've been playing the credit card rewards game for years now. I tend to carry a zero balance on each of my cards every month, and receive hundreds of dollar-bucks in statement credits each year as a reward.

I've also taken advantage of low financing rates for each of our two vehicles, which now only have a few grand each left on their respective loans. The interest rates, while low (~2.X% average), are non-zero and allow banks to hold my titles...

SO, after some research, I found a new CC that offers 1.5% cash-back on ALL purchases, which I'll use for the purchases in which my Amex and Amazon cards only offer 1.0% cash-back (i.e., "all other" purchases). Regarding cash-back, the Amex is great for gas, grocery and certain department stores purchases, while the Amazon card benefit is self-explanatory. It may not seem like much, but the extra 0.5% interest on "other" charges, as well as the transfer of ~$6k in auto-loans is pretty much a no-brainer - I should have done it sooner, with an amount much higher on each loan, up to my credit card limit.

Notes:

1. I have 12 months at 0% interest to pay off this amount; no transfer fee.

2. I don't plan to use this card for anything until the above "auto-loan" balance is paid-off, except for the purchase of a couch for our living room, to replace the janky pleather pull-out that came from our old condo. We have cash to pay for the new couch, but the seller does not offer financing, nor any benefits for paying cash. 1.5% back sounds good in this instance.

3. The janky pleather pull-out will stay in the basement, since it still works as a couch and the pull-out is a decent bootleg memory-foam that is perfect for younger visitors who aren't super particular.

4. We just purchased our "forever" home and both have >825 credit scores. The new debt won't matter in the next 12 months.

5. I'm posting this for perspective. Some of us do not have the wherewithal to make this work. Others here refuse to owe anyone anything, particularly when it involves revolving debt! YMMV!

6. When I was younger (before the economy took a dump in 2008/09) I shifted family debt from 0%-interest credit-card to 0%-interest credit-card, because I had a decent credit score and the offers were coming in every single day - literally dozens of 0% offers every month back before the "Great Recession"! I was the only one in the family who made OK money and the only alternative to family members turning to loan-sharks. I learned out of "necessity (I know how that sounds)" how to bounce around debt and have learned how to do it well now that I can pay off balance monthly, not just yearly...

6.a. The debt I moved around was to help other family members. I was just out of college and single at the time. Now that I have a family, I would not currently consider making ANY of those "loans" again!
 
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I understand all that and applaud you.. now waiting for the overly righteous trolls to post in here.

I bought a yard shed with the amex spg card. got 9 free nights.. Then balance transferred it to chase slate for 0% 18 months.(no fee either).

Just completed the 100k ihg card bonus(15-20k/night).. going to gettysburg on vacation.. and spent 3 days in pittsburgh last month (free)

Credit score is still well over 800.

Chase sapphire preferred(500 in ur points/4000 spend), citi thank you premier($600 in points bonus on 4000) and capital one savor ($500 on $3000) all annual fees waived first year..
Good places to get some free vacation money.

I usually put house taxes, insurance, car insurance, dental work etc on them.

If you are in control its free $$$, if you let it get out of control it can be a slippery slope.

I know people who cant even manage to responsibly use a store car(such as kohls) let alone this kind of stuff for bonus $$$
 
That's what I'm talking about, Rand.
These finance jamokes take advantage of anyone they can, whenever they can.
I know my "benefits" are paid for (and then some!) by others; however, it makes me feel a little better knowing that I'm a regular dude who knows how to take advantage of this one particular situation, not just another rich jerk who can game every aspect of the system without having to try!

Additional Note:

1. I pay using cash as much as possible for local goods. I'm well aware that the fees at the vendor level are just as much a boon for the credit card companies as the fees/interest poor schmucks who can't afford their spending habits/needs are forced to pay.
 
Originally Posted By: Zee09
Did you get hit with a 3% transfer fee?
You do what works for you.
That's all that matters


Good question. No fee.

I read all of the fine print before cashing the credit card convenience check to my checking account.
I then paid off each of the loans with these funds, which were made available immediately upon cashing online.
 
Makes sense to me.
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A good resource is doctorofcredit.com, where I learned a few things on best rewards, bonus offers and more

As a reference, Amex offers several card products where we picked up over 3k in just 90-day spending rewards last year and we churn this year multiple 150/250 cash reward bonus cards, currently using Preferred which pays 6% reward in addition to cash bonus 250 for 1st 90 days.

Also, as to Amazon, we get 5% back on all purchases using Amazon Prime Visa and have used (again learned on DOC, link above) previous years pre-purchased discounted amazon prime (stashed away) gifts to reactivate new prime for half price.

It also pays to shop for best fee-free money market accounts, several online FDIC insured banks pay over 2.25%, some unlimited and some with 25k or 100k max limits, all documented on DOC (link above)
 
Originally Posted By: dishdude
Makes sense to me.
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X2. Nicely done, in my opinion.
 
For a while I was playing the game. I didn’t get burned or anything but I just stopped because i didn’t want to keep up with it. I only use the chase sapphire preferred now. It did help pay for a good chunk of my wedding and a flight for two to Cancun
 
Best advice I ever received and followed up on was to phone every CC provider (I had VISA. Mastercard, AMEX only) and ask for a lower interest rate. Do it once a year (the month of your birthday is easy to remember, or set a date in your calendar app) and no more often. Saved me massive amounts of $$, worst rate after a couple of years was 11.9% (the Mastercard; they were stubborn, but it was my first card so I couldn't kill it).
 
Entire credit score and debth thing in US is a total joke, scam I’d say. Very disheartening to see so many people being involved in it without even realizing how deep down they are. I could care less about the credit score, credit cards and all the junk associated with it. If you cannot buy something with cash - you cannot afford it. Simple and effective. Just my opinion
 
Originally Posted By: Rand
I understand all that and applaud you.. now waiting for the overly righteous trolls to post in here.


And as you predicted...
 
good for you if you can keep on top of it. But even if you add up all your gains its peanuts and not going to change your life.

Hopefully you can eventually get yourself into a more lucrative hustle where you get something more satisfying or rewarding for your time and effort than the crumbs you're getting from stoozing (the term for this) or chasing manufactured spend.

But if this is the best you got going good on you for hustling.
 
I did the same thing with our Maverick. Dealer interest rate was 26%. My card was 6%. This way I got the machine in my name. I then swapped to a 0% card at the first chance I got then paid it off before the 0% went up.
 
Originally Posted By: parshisa
Modern problem - people that are not scared to face the truth and speak up are trolls now. Sad, very sad


I know; I'm heartbroken...
crackmeup2.gif
 
Originally Posted By: raytseng
good for you if you can keep on top of it. But even if you add up all your gains its peanuts and not going to change your life.

Hopefully you can eventually get yourself into a more lucrative hustle where you get something more satisfying or rewarding for your time and effort than the crumbs you're getting from stoozing (the term for this) or chasing manufactured spend.

But if this is the best you got going good on you for hustling.

It is free money(for me anyways) and eventually it adds up. We play some grocery store points games and if you are flexible and don't mind buying in bulk, it adds up to around 10% off our grocery bill.
 
I’m anti debt but all for using cc’s for rewards and convenience.

I can’t see how it would be worth it to transfer $6k to a 0% card when your car loans are 2.x%.

No transfer fee is great, but one slip up or not paying in full in the 0% period could result in some hefty costs.

I also suspect your rewards are only on purchases, not transfers. If that’s the case, then there’s less benefit.
 
My wife and I get hundreds of dollars annually in rewards on credit cards WE PAY OFF EVERY MONTH.




Just keep tuning in to that guy who says you don't need a FICO to buy anything...even a house.
 
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