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Thursday, September 07, 2006

$13k O% Balance Transfer from Capital One Credit Card


Well I bit again. Back in June I signed up for a 0% balance transfer from CitiCard for $26.5k, now I signed up for a $13k 0% balance transfer from Capital One.

Since I no longer have any major financing moves in my immediate future (no plans to buy another property), I went ahead and put my credit score back to work by applying for a new credit card, taking the 0% balance transfer offer, and moving the cash to my HSBC Internet Savings Account to earn 5.05% APY.

This time I used 2 different techniques to extract the balance transfer from the new credit card.

When I applied for the credit card I requested a $10k balance transfer to my Wachovia Ready Reserve (basically a line of credit acct) account. Then I transferred the money from my reserve account to my checking account, and finally to my savings account.

When I received the actual credit card, the mailing included a "purchase check" that could be used for balance transfers with no transaction fee. So I wrote the check to myself for the remaining credit, deposited the check into my checking account and then moved the cash to my savings account.

For future reference, I found it less hassle to transfer using the purchase check so I will opt for using the check in the future rather than transferring it to my line of credit account.

23 Comments:

  • Isn't free money addicting? I loved those citi-card offers. You should get your fiancee to sign up for some of them as well. Those $100 gift cards come in handy.

    By Blogger franky, at 4:42 PM  

  • Does this affect your credit any?!!

    I wnat to do it but don't want to negatively affect my credit

    By Blogger pyroracing85, at 5:01 PM  

  • I'm suprised a "purchase" check can be used for balance transfers. You're sure that the fine print allowed for BT's?

    Matthew @ Crazy Money

    By Blogger Matthew, at 7:51 PM  

  • I recently got a Chase check for 0% through August 2007. They send me these all the time. I plan to take advantage of this, probably drawing to my maximum line which is approximately 35k. Fee is $100.

    By Blogger Jojo, at 12:03 AM  

  • I found the Citi American Express Dividend card to be the easiest balance transfer. They just sent me a check in the mail!!!

    Obsessedwithmoney

    www.obsessedwithmoney.blogspot.com

    By Blogger ObsessedWithMoney, at 4:03 PM  

  • You guys are pathetic, I would be too busy to bother with such things.

    By the way, I just wanted to say, I hate my tenants, I hate my real estate agents and I hate buying land.

    Thank you.

    Anonymous Millionaire.

    By Anonymous Anonymous, at 2:04 AM  

  • Sounds like you have not having a good day.

    By Blogger 2million, at 9:01 AM  

  • I'd put the money in Aussie dollars that pay 5.4% dividend!

    By Blogger Empty Spaces Inc., at 2:57 AM  

  • Ouch.. bad move on utilizing the purchase check. By the end of the monthly cycle, you'll be paying a hefty APR on that purchase amount.

    When you transfer a balance at the zero rate, and your regular purchases carry a much higher double digit interest rate, your monthly payments will go toward the initial balance that carries the 0% rate. In other words, you transferred $10,000 to a card that carries say 13% APR for purchases, your monthly payments would apply to the $10,000 balance at 0% APR first, while your $3k "purchase" would continue accruing crazy compounded double digit interest. In effect, the true APR for your balance transfer would be much higher than 0%, and most likely beyond your 5.05% savings rate, negating any profit. (To see for yourself, crunch your numbers in a balance transfer calculator online.) Whenever you're planning to transfer a balance, make sure the card that you're transferring to is paid off before the transfer is complete and then "leave that card alone until it's time to pay [the low-rate transfer] off.

    By Anonymous LFESpock, at 9:26 AM  

  • Actually this purchase check fell under the 0% balance transfer rate so it was a good move.

    Definitely need to read the fine print closely though and confirm this before you use a credit card check

    By Anonymous 2million, at 10:22 AM  

  • I've had good experience with Chase, and find their balance transfer offer quite attractive.. but I'm afraid it can damage my score or I will pay more due to some hidden fees. Should I apply or not?

    By Blogger lastAutumn, at 1:39 AM  

  • nice blog.

    By Anonymous balancetransfer.citicards.com, at 5:15 AM  

  • AM HERE WITH FRESH STUFFS, CC FULLS,CVV ,DUMPS,BANK LOGIN,AND I DO WU TRANSFER ,BANK TO BANK TRANSFER:

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    By OpenID jmlWY4EJ2u86WCKkKOg7TkKMtm7r_9kq, at 12:12 PM  

  • AM HERE WITH FRESH STUFFS, CC FULLS,CVV ,DUMPS,BANK LOGIN,AND I DO WU TRANSFER ,BANK TO BANK TRANSFER:

    ONLINE BILLS PAYMENT AVAILABLE:

    CONTACT ME: HELSINGIUSJ@YAHOO.COM

    By Anonymous Anonymous, at 12:14 PM  

  • AM HERE WITH FRESH STUFFS, CC FULLS,CVV ,DUMPS,BANK LOGIN,AND I DO WU TRANSFER ,BANK TO BANK TRANSFER:

    ONLINE BILLS PAYMENT AVAILABLE:

    CONTACT ME: HELSINGIUSJ@YAHOO.COM

    By Anonymous Anonymous, at 12:19 PM  

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