MAKE money off Credit Card Company

[cbird01]

OK, this will apply if you have a good amount of room on your credit card. I have a Wells Fargo Visa with $15,000 room on it. It is zero balance. I get offers for transfers at 1.9% through July 2007. Make sure they don't charge a transfer fee! My Emigrant Direct savings account is 5.05% interest with no minimum balance or monthly charge. If I transfer $10,000 to my savings and make 5.05-1.9 = 3.15%. This equates to $184 I have made off the greedy CC company in 7 months. I transfer the money to pay the CC balance before the 7 months is up, then wait for their next offer. (better pay those payments on time or they will jack your rate up!)

[Ima saver]

Usually tranfers are from one credit card to another.

[cbird01]

Originally Posted by Ima saver

Usually tranfers are from one credit card to another.

This might be less available than I thought. Be nice to hear from others on their cards policies. Maybe it is because it is a major banks credit card. Wells Fargo allows you to transfer directly to another card or deposit into your wells fargo account. Maybe the CC only companies do not do this since they do not have regular bank accounts. However, if you want to try it may be worth getting a Wells Fargo account or possibly check if the bank you have your regular account with has a CC that allows transfers to your account for promotional offers.

[kristinecfp]

Are you sure they are offering 1.9% on transfers to your WF checking/savings account? Usually fees on cash advances are much higher than balance transfer fees. If they are offering 1.9% on a cash advance, that's a pretty good deal.

[disneysteve]

I used to do this all the time. Made hundreds of dollars. On the first day of my billing period, I would deposit a $10,000 credit card convenience check into my money market. Then, when the bill came due, I'd pay it with a check from my money market. There was a transaction fee for using the convenience check, but it was far less than the interest I earned. Eventually, the cc company caught on and raised the convenience check fees so that it no longer made sense. But if you have a card that has the right terms, this can be a great deal.

[Ima saver]

I am always checking this, but I never seem to make enough money to make it worthwhile.

[Bookie]

Another point is that even cards with 0% offers require monthly payments. Currently, credit card minimum payments are running between 2 and 4 percent of the outstanding balance.

Can you service a monthly payment of $200 to $400?

[disneysteve]

Originally Posted by Bookie

Another point is that even cards with 0% offers require monthly payments.

When I was doing this, I only kept the money out for one billing period. With a 30 day billing period and the grace period, I got about 50 days of interest. The next month, I did the same thing again, and again, and again. I wasn't using a 0% deal, but it didn't matter because I wasn't carrying any balance. I was still paying my cc bill in full every month.

[cbird01]

Originally Posted by Bookie

Another point is that even cards with 0% offers require monthly payments. Currently, credit card minimum payments are running between 2 and 4 percent of the outstanding balance.

Can you service a monthly payment of $200 to $400?

The key is in the terms, so you have to be careful. Never thought of doing it on a monthly basis. I have a low minimum, but you could always pay from your savings that you deposited into.

Almost all companies will send you those convenience checks that are a certain low % for so many months, so this is when you jump on it. Just have to make sure they are low or no fee like mine.

It is getting easier with savings rates up around 5%!

[Hot dog]

I am doing this right now On 10,000 the monthly payment is 200 I just figure it is making me at least save 200 a month when I pay it every month It is for 6 months and it cost 75 for the cash advance. Then I hope to get an offer for 1.9 to finish paying off my car soon This is the first time I did this It seems to be a good deal

[cbird01]

Originally Posted by Hot dog

I am doing this right now On 10,000 the monthly payment is 200 I just figure it is making me at least save 200 a month when I pay it every month It is for 6 months and it cost 75 for the cash advance. Then I hope to get an offer for 1.9 to finish paying off my car soon This is the first time I did this It seems to be a good deal

Hot dog, it shouldn't 'seem' to be a good deal. It either is making money or not. How much is the interest rate for the cash advance deal and in your savings account? If the interest rate spread isn't favorable, there is no sense in doing this just to put away $200/month, you can do that on your own directly into your savings.

[Hot dog]

It is definitely a good deal It is just hard to believe that cc would give me the $ when I can make more interest than they charged me for the transaction. It cost $75 for the cash advance and I am making 5.38% in interest.

[cbird01]

Wow that is a good spread. What is the offer for the card and what type and company for your savings account? (I may have to switch savings accounts!)

[Hot dog]

I have an E-Loan account and I'd have to look but I think it is a citi bank card but could be Chase They often have the same offer It is 3% or $75 whichever is less that they charge for the cash I just got another check in the mail and I already am using the previous offer

[cbird01]

Sorry I meant the rates on the offer and the savings account. So looking at e-loan, they have a good rate 5.38% with 5k minimum. So your CC offer was 0%? Wells fargo never seems to send 0% offers.

[Hot dog]

It is 0% for 6 months