Author Topic: 0 APR Convenience Check  (Read 16191 times)

rawraw

  • Hero Member
  • *****
  • Posts: 2795
    • View Profile
0 APR Convenience Check
« on: November 12, 2013, 10:01:45 PM »
Based on that last thread, it looks like there are more of us doing this now.  I was curious who all is doing it and your experiences (hopefully including where you got the 0 APR advance from)

nonattender

  • Hero Member
  • *****
  • Posts: 726
  • I am not here.
    • View Profile
Re: 0 APR Convenience Check
« Reply #1 on: November 12, 2013, 10:56:28 PM »
You should title this thread "Signs that it's officially a bubble."
A little nonsense now and then is relished by the wisest men.

Bohb Daishi

  • Sr. Member
  • ****
  • Posts: 481
  • I eat free lunches
    • View Profile
Re: 0 APR Convenience Check
« Reply #2 on: November 13, 2013, 02:06:49 AM »
I have been doing 0% APR balance transfers since about 2007. It's very cheap money and the banks don't seem to mind that you pay off the balance (with a transfer from a different card) the moment the 0% APR period ends.

What banks do you guys use for these? I find that Citibank is the most generous with both balance transfers as well as credit lines.
« Last Edit: November 13, 2013, 02:30:25 AM by Bohb Daishi »
There are three ways to make a living in this business: be first, be smarter, or cheat.

Bohb Daishi

  • Sr. Member
  • ****
  • Posts: 481
  • I eat free lunches
    • View Profile
Re: 0 APR Convenience Check
« Reply #3 on: November 13, 2013, 02:30:30 AM »
Also, there has been some misinformation floating around on these forums, so I'll clear it up: money you borrow (for investment) is considered by the IRS as a cost of investment, similar to broker commissions and margin interest. Whether you borrow from LendingClub, a 0% APR balance transfer, or from your uncle, you can deduct the interest straight from your investment revenue.

Just make sure you keep detailed records of your transactions (cash trail from the borrowing source to your investment account), so you can prove to the IRS that you borrowed the money for investment purposes. Also, try to keep the accounts separate (i.e. don't do a 0% APR balance transfer on a credit card you actively use for everyday purchases).
There are three ways to make a living in this business: be first, be smarter, or cheat.

rawraw

  • Hero Member
  • *****
  • Posts: 2795
    • View Profile
Re: 0 APR Convenience Check
« Reply #4 on: November 13, 2013, 05:28:38 AM »
I have been doing 0% APR balance transfers since about 2007. It's very cheap money and the banks don't seem to mind that you pay off the balance (with a transfer from a different card) the moment the 0% APR period ends.

What banks do you guys use for these? I find that Citibank is the most generous with both balance transfers as well as credit lines.
I used US Bank for mine.  It was a 3% fee for 1.5 years

TonySaunders

  • Full Member
  • ***
  • Posts: 194
    • View Profile
Re: 0 APR Convenience Check
« Reply #5 on: November 13, 2013, 01:38:08 PM »
Also, there has been some misinformation floating around on these forums, so I'll clear it up: money you borrow (for investment) is considered by the IRS as a cost of investment, similar to broker commissions and margin interest. Whether you borrow from LendingClub, a 0% APR balance transfer, or from your uncle, you can deduct the interest straight from your investment revenue.

Just make sure you keep detailed records of your transactions (cash trail from the borrowing source to your investment account), so you can prove to the IRS that you borrowed the money for investment purposes. Also, try to keep the accounts separate (i.e. don't do a 0% APR balance transfer on a credit card you actively use for everyday purchases).

It's true, you can read all about it in IRS publication 550.


TonySaunders

  • Full Member
  • ***
  • Posts: 194
    • View Profile
Re: 0 APR Convenience Check
« Reply #6 on: November 13, 2013, 02:01:23 PM »
It's worth noting that lots of credit cards offer 0% interest introductory periods for purchases with no fee at all. One could make all their normal purchases with such a card instead of using their cash (and invest the cash instead).
  • The payoff is actual 0% APR and no-fee access to money for investment.
  • Careful, you probably can't deduct the interest on your taxes if you let the introductory period lapse.

rawraw

  • Hero Member
  • *****
  • Posts: 2795
    • View Profile
Re: 0 APR Convenience Check
« Reply #7 on: November 13, 2013, 04:04:32 PM »
It's worth noting that lots of credit cards offer 0% interest introductory periods for purchases with no fee at all. One could make all their normal purchases with such a card instead of using their cash (and invest the cash instead).
  • The payoff is actual 0% APR and no-fee access to money for investment.
  • Careful, you probably can't deduct the interest on your taxes if you let the introductory period lapse.
Yea, I plan to do this if I can't find another when it ends.

ggnoob1337

  • Full Member
  • ***
  • Posts: 107
    • View Profile
    • Keep Living While Saving
Re: 0 APR Convenience Check
« Reply #8 on: November 13, 2013, 04:39:53 PM »
I've only done this to invest in Lending Club once and it was US Bank. It was a higher fee of 4%. We used a 0% APR check from my wife's Chase MasterCard for a business investment and that is a 2% fee. In the future, I may continue to write myself a check for investments, but it will be using the Chase MC for the lower fee. But then again, I'm still earning a good amount over US Banks 4% fee, so maybe I'll use them both. US Bank had a longer term of 15 months. Chase was 1 year.

Randawl

  • Sr. Member
  • ****
  • Posts: 469
    • View Profile
Re: 0 APR Convenience Check
« Reply #9 on: November 13, 2013, 09:57:20 PM »
I recently got offers from Chase, Discover, and Citi for 0% for 15 months and a 0% balance transfer fee.

I guess those offers are making a comeback.  I haven't seen them like that since pre-2008.

Bohb Daishi

  • Sr. Member
  • ****
  • Posts: 481
  • I eat free lunches
    • View Profile
Re: 0 APR Convenience Check
« Reply #10 on: November 13, 2013, 11:02:40 PM »
I recently got offers from Chase, Discover, and Citi for 0% for 15 months and a 0% balance transfer fee.

I guess those offers are making a comeback.  I haven't seen them like that since pre-2008.

Show us proof or you're lying. No bank would ever lend out money for a true 0%.
There are three ways to make a living in this business: be first, be smarter, or cheat.

Randawl

  • Sr. Member
  • ****
  • Posts: 469
    • View Profile
Re: 0 APR Convenience Check
« Reply #11 on: November 13, 2013, 11:48:59 PM »
Show us proof or you're lying. No bank would ever lend out money for a true 0%.

From Chase:



From Discover:



You made me dig those out of my recycling bin.  The other was taken out in last week's trash.  Think twice before throwing that sort of accusation at me again.

Joe6Luck

  • Jr. Member
  • **
  • Posts: 94
    • View Profile
0 APR Convenience Check
« Reply #12 on: November 14, 2013, 12:36:42 AM »
The picture is not so clear, but it seems you are charged a certain% one-time transaction fee.

Bohb Daishi

  • Sr. Member
  • ****
  • Posts: 481
  • I eat free lunches
    • View Profile
Re: 0 APR Convenience Check
« Reply #13 on: November 14, 2013, 02:49:00 AM »
Show us proof or you're lying. No bank would ever lend out money for a true 0%.

From Chase:



From Discover:



You made me dig those out of my recycling bin.  The other was taken out in last week's trash.  Think twice before throwing that sort of accusation at me again.

Wow, I stand corrected. It says $0 "intro fee", so it must be for signing up for a new card, similar to the "get 10,000 points with a new account" sales pitch. Did they actually cut you a check for the amount of the transfer, or did they force you to use the money to pay off a different credit card?
There are three ways to make a living in this business: be first, be smarter, or cheat.

rawraw

  • Hero Member
  • *****
  • Posts: 2795
    • View Profile
Re: 0 APR Convenience Check
« Reply #14 on: November 14, 2013, 06:06:31 AM »
Show us proof or you're lying. No bank would ever lend out money for a true 0%.

From Chase:



From Discover:



You made me dig those out of my recycling bin.  The other was taken out in last week's trash.  Think twice before throwing that sort of accusation at me again.

Why were these in the trash and not in your bank account?