0 APR Convenience Check

[core]

Good thing I'm not your trash man.  You seem like a good customer to have on the route!

[Xin]

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%.

BarclayCard has a card called Ring for the same purpose. Oops it's 8% APR nevermind.

[Randawl]

The picture is not so clear, but it seems you are charged a certain% one-time transaction fee.

No.  All balance transfers within 60 days for one and by Jan. 10, 2014, for the other are without a fee.  Subsequent balance transfers would be subjected to a fee though.

Good thing I'm not your trash man.  You seem like a good customer to have on the route!

Haha, you're welcome to come sift through my trash any time, core. . .  If you pilfer long enough you might succeed in acquiring my name and address.

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

I don't need to retain the disclosures to take advantage of the offers!   

[Cries]

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?

Curious as well

[yaoyao]

I got 0% convenience check from chase, barclay, discover and BOA, but none of them is with no balance transfer fee.  The lowest I got is usually 2%.

[Randawl]

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?

Curious as well

Must be used to pay off a different card.  I had several that were nearing the end of their 0% introductory APR and was happy to learn I would not have to pay a balance transfer fee or use any of my investments to pay them off yet.

It's been 5 years since offers like these were prevalent.  It seems like they are making a comeback.  Take advantage of as many as you can!

[rawraw]

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?

Curious as well

Must be used to pay off a different card.  I had several that were nearing the end of their 0% introductory APR and was happy to learn I would not have to pay a balance transfer fee or use any of my investments to pay them off yet.

It's been 5 years since offers like these were prevalent.  It seems like they are making a comeback.  Take advantage of as many as you can!

Man... I never thought about this.  But it's so simple - thanks

[howler99]

Just wanted to add a word of caution here that may not apply to everyone, I did this with my REI card (US Bank), so I got a 0% APR 15 mos. advance for 4% fees. Sounds ok, but the only catch is I like to use my REI card for the 5% cash rebate, and apparently the cash advance counts toward your balance, so basically there is no grace period.

Now whenever I use my REI card, I get charged interest, and US Bank has a $2 minimum interest payment, so even if I charge something for $30 and send a payment the next day, I get charged $2, and my rebate (from REI next year) would be $1.50.

It's not a big deal, but it's annoying and adds up over time. I suspect most cards are like that, so my advice would be to only use this on a card you don't plan on using for anything else.

[J2E]

For the people doing this, do you pay the cc minimums from withdrawing from your LC account or from your regular or other income?  I'm considering this for about 10k at 2% up front. I haven't computed the minimum payments but I would likely need to either withdraw every month to pay it back or not invest it in later months to make the last month balloon payment at the end of the term.

[ggnoob1337]

For the people doing this, do you pay the cc minimums from withdrawing from your LC account or from your regular or other income?  I'm considering this for about 10k at 2% up front. I haven't computed the minimum payments but I would likely need to either withdraw every month to pay it back or not invest it in later months to make the last month balloon payment at the end of the term.

Here's an example of what I would use these checks for...

Lets say I have an extra $500 a month to invest. But if I could write myself a $6,000 0% APR (for 12 months) check, then I'd invest that and pay it off with the $500 a month. Over that one year earning 12% interest and paying a 2% fee on that initial check, I'd make about an extra $240. May or may not be worth it to you. But the more interest I earn the farther I'll come out ahead.

[rawraw]

Just wanted to add a word of caution here that may not apply to everyone, I did this with my REI card (US Bank), so I got a 0% APR 15 mos. advance for 4% fees. Sounds ok, but the only catch is I like to use my REI card for the 5% cash rebate, and apparently the cash advance counts toward your balance, so basically there is no grace period.

Now whenever I use my REI card, I get charged interest, and US Bank has a $2 minimum interest payment, so even if I charge something for $30 and send a payment the next day, I get charged $2, and my rebate (from REI next year) would be $1.50.

It's not a big deal, but it's annoying and adds up over time. I suspect most cards are like that, so my advice would be to only use this on a card you don't plan on using for anything else.

I think I detailed this in my post as well -- I used US Bank as well and pay interest every month now.  But I'm charging thousands of dollars with 5% cash back, so I end up benefiting.

I pay the min payment from regular salary.  But the cash flow from LC is more than sufficient (I think my monthly payment is $40ish, the portfolio is producing like $150 a month in payments).  It's just too much a hassle to do all those transfers IMO

[J2E]

Here's an example of what I would use these checks for...

Lets say I have an extra $500 a month to invest. But if I could write myself a $6,000 0% APR (for 12 months) check, then I'd invest that and pay it off with the $500 a month. Over that one year earning 12% interest and paying a 2% fee on that initial check, I'd make about an extra $240. May or may not be worth it to you. But the more interest I earn the farther I'll come out ahead.

I'm curious if anyone is doing this for funding without planning on having monthly investment income to contribute.  Basically your method, you're investing it all up front vs investing every month.  Makes sense.  And it sounds to me like others when they come to the end of their 0% term, do another balance transfer to keep on in 'perpituity'.  Anyone actually withdraw the funds as they need to make payments on the CC?  Doesn't seem effective to me as you have to let that cash sit idle and would definitely impact your returns.  Better to do one of the methods above if you have the extra cash available monthly.

[william]

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.

^^^This is what I do. I don't remember exactly but I think I used a BankAmericard Visa card the first time I did it, then a Capital One VentureOne Card that I just payed off (must be fully payed by 12/2013 if I don't want to get charged the interest for the entire balance I had through out the year). Next I'm looking at a Citi Simplicity card which will have a 0% intro APR for 18 MONTHS!!! That is unless anyone can recommend a better card?

I've done the math and for me doing a balance transfer just doesn't make sense. I usually reach the limit within 2 months anyway (because I use the card for almost every expense). So paying a 2-3% fee upfront is usually just a little worst.

The minimum is not that much at all. It's $150 each month so I used my income to pay for it.