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Mmm, 0% APR balance transfer for 15 months...
Citibank's offering me a 0% APR credit card for 15 months (12 if I don't actually use the card for at least $100 in the first three months). I'm tempted to do the Balance transfer trick - essentially requesting a large, $10,000 balance transfer, snagging the difference and storing that into my HSBC saving account, earning me 5.05% interest => A total of $591.61 in 14 months (presuming it takes some time to actually get the month).
Except there's an irritating 3% transaction fee for the balance transfer. Which means I only put in $9,700. At the end of 14 months, according to INGdirect's tool I'll have $10,273.87. A $273.87 after I pay off the $10,000. Potentially a tiny bit less since I have to pay the monthly minimum... About $250 earned total? Poop.
Mmm, chevy chase may be better. :) Same 15 months, but a $75 max Balance Transfer charge. Ooh, hm, it's 0% APR on both purchases and balance transfers... Hmmm. Yes, much better. It should net me around $512.18? A bit less, again, due to the minimum monthly payments.
Now to figure out which credit card I should transfer it to...
Oh, yeah. I did post about this previously. If you missed the post, here's a step-by-step post by someone else that shows what I'm planning on doing: http://www.mymoneyblog.com/how-to-make-money-from-0-apr-balance-transfers/
(In short, request a balance transfer from a new card - it's like a loan, but with 0% interest for a set amount of time. The balance transfer is applied to a card, or you get a check. Move the money to some high interest savings account* and let it accrue interest. When the 0% set amount of time ends, pay off the card and rejoice in the interest you have earned without spending a dollar. Supposedly.)
*we recommend INGDirect or HSBCDirect, both online banks. INGDirect has quite possibly the best banking/financial website I've had the pleasure of using... but I digress. If you want to open an account at the former, tell me, and I'll refer you. You'll earn a bonus as will I~
Except there's an irritating 3% transaction fee for the balance transfer. Which means I only put in $9,700. At the end of 14 months, according to INGdirect's tool I'll have $10,273.87. A $273.87 after I pay off the $10,000. Potentially a tiny bit less since I have to pay the monthly minimum... About $250 earned total? Poop.
Mmm, chevy chase may be better. :) Same 15 months, but a $75 max Balance Transfer charge. Ooh, hm, it's 0% APR on both purchases and balance transfers... Hmmm. Yes, much better. It should net me around $512.18? A bit less, again, due to the minimum monthly payments.
Now to figure out which credit card I should transfer it to...
Oh, yeah. I did post about this previously. If you missed the post, here's a step-by-step post by someone else that shows what I'm planning on doing: http://www.mymoneyblog.com/how-to-make-money-from-0-apr-balance-transfers/
(In short, request a balance transfer from a new card - it's like a loan, but with 0% interest for a set amount of time. The balance transfer is applied to a card, or you get a check. Move the money to some high interest savings account* and let it accrue interest. When the 0% set amount of time ends, pay off the card and rejoice in the interest you have earned without spending a dollar. Supposedly.)
*we recommend INGDirect or HSBCDirect, both online banks. INGDirect has quite possibly the best banking/financial website I've had the pleasure of using... but I digress. If you want to open an account at the former, tell me, and I'll refer you. You'll earn a bonus as will I~
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