Are you a credit tart?

Bruce Wayne · #1 (**permalink**) 07-23-2005, 02:51 PM

It is quite common in Britain to utilise the interest free credit offers on credit cards and switch cards to make the most of these offers. This practise is known as credit tarting. Is it common in the US too?

BAGAGT1 · #2 (**permalink**) 07-23-2005, 03:04 PM

You betcha it is common here as well, I did it when I needed to pay off $4700 at the beginning of this year. At the end of this month, I will have finished paying it off.

altyfc · #3 (**permalink**) 07-25-2005, 01:36 AM

It's not something I personally do, but I am one that continually tries to ensure that my money is working for me as best it can. I'll regularly review my interest rates, my mortgage rate, etc. and, if it's not one of the best, move it.

Aaron

Tree0164 · #4 (**permalink**) 07-25-2005, 04:24 AM

Well I was a huge credit tart!! I played the switching game with 2-3 cards for getting 20k in credit card debt paid off.

Bruce Wayne · #5 (**permalink**) 07-25-2005, 04:26 AM

Quote:

Originally Posted by Tree0164

Well I was a huge credit tart!! I played the switching game with 2-3 cards for getting 20k in credit card debt paid off.

That's impressive. How long did this take?

KathMorgan · #6 (**permalink**) 07-25-2005, 04:29 AM

Count me a tart too. We played the tarting game and also paid off almost 50K in CC debt. Took just over 3.5 years and we are now completely (as of Jun 1) CC debt free and working on the house. By this time next year we should be completely debt free!! Whooohooo!

Bruce Wayne · #7 (**permalink**) 07-25-2005, 05:25 AM

That is certainly impressive. Do you think you will eventually put this credit to use earning you money as opposed to paying off debts?

akaivyleaf · #8 (**permalink**) 07-25-2005, 06:56 AM

I was debt free before Tarting became popular, so no I never have done a balance transfer. I have recommended it to people who were truly honest and were determined to pay it all off. I think its great if you are disciplined enough to do it.

jmjj215 · #9 (**permalink**) 07-25-2005, 08:41 AM

With tarting, do people also take those interest-free offers for cash advances then deposit the money into a savings account? I think some people call that credit card arbitrage.

PrincessPerky · #10 (**permalink**) 07-26-2005, 04:46 AM

I so would do it, if I thought I would remeber to switch, but I wouldn't, so I don't

Procrastination does save us some in the shopping department, but not in the bills area!

CheaplyClever · #11 (**permalink**) 07-26-2005, 05:22 AM

Quote:

Originally Posted by Bruce Wayne

That is certainly impressive. Do you think you will eventually put this credit to use earning you money as opposed to paying off debts?

This is interesting. Has anyone tried to earn money by tarting?

akaivyleaf · #12 (**permalink**) 07-26-2005, 03:17 PM

How exactly would you earn money? Getting a cash advance isn't part of the 0% deal- you only get 0% when you transfer a balance. Any charge/cash advance is at some percentage of interest and usually cash advances are higher than a purchase.

I can't see any other way to get cash out of the deal, unless I'm missing something.

DivaJen · #13 (**permalink**) 07-26-2005, 03:30 PM

Quote:

Originally Posted by akaivyleaf

How exactly would you earn money? Getting a cash advance isn't part of the 0% deal- you only get 0% when you transfer a balance. Any charge/cash advance is at some percentage of interest and usually cash advances are higher than a purchase.

I can't see any other way to get cash out of the deal, unless I'm missing something.

I suppose technically, if you already had the money to make the purchase but instead chose to finance it at 0% interest, then you could make some money this way. DH and I have made a major purchase or two this way. It's not like it makes a ton of money in interest, but free financing and a little interest is still better than no interest.

Bruce Wayne · #14 (**permalink**) 07-26-2005, 11:27 PM

If you're good at investing you could take your interest free credit and put it into some short/medium term investments and make money that way.

Tree0164 · #15 (**permalink**) 07-27-2005, 04:24 AM

Quote:

Originally Posted by Bruce Wayne

That's impressive. How long did this take?

It took about 4 years. During that time we went from being a 2 income family to being a one income. I only openned 1 additonal card during that time and we never charged anything new during that time which is one of the most important things. I would swtich the balances back and forth for their times when they were offering good rates. I often got the transfer fees waived as well. Always paid on time as well.

Tree0164 · #16 (**permalink**) 07-27-2005, 04:26 AM

Quote:

Originally Posted by jmjj215

With tarting, do people also take those interest-free offers for cash advances then deposit the money into a savings account? I think some people call that credit card arbitrage.

Not smart. Might as well go to Vegas then.

jmjj215 · #17 (**permalink**) 07-27-2005, 06:34 AM

Quote:

Originally Posted by Tree0164

Not smart. Might as well go to Vegas then.

I don't think it's quite on the same plane as Vegas (and I'm not saying I would do it), but there are people out there that make a bit of money doing just this. One guy I know (who makes a lot of money salary-wise) will get cash advance offers, interest-free for 9 months. One was for 30k! He has it in an ING account until the 9 months are up. That's over $700.

I personally don't think the hassle or worry is worth the $700. To each his own though - hopefully he doesn't get burned one of these days.

doglar · #18 (**permalink**) 07-28-2005, 07:08 PM

to do this you have to stay ahead of them...since all of us probably have a large purchase now and then that we might use a credit card to purchase...or say tuition...say $5000....and say you have the cash laying around to pay this off. You could take $5k and pay the bill....or you could make 3.5% on the 5k while you tart the 5K debt on 0% intro cards with no xfer fee. Say you get an offer for a 12 month 0% intro offer with no xfer fee and no annual. This 5K in a Emigrant savings account at 3.5% APY means approx $178 interest made in the 12 month that would not have been if the money was used to pay off the debt immediately. Since you have the cash, as soon as the gig is up, pay off the balance....of course make one late payment and maybe all the gains are lost...but that is why there is billpay..it should be impossible to miss a payment anymore.

singinjeannie · #19 (**permalink**) 07-28-2005, 09:43 PM

Quote:

Originally Posted by Bruce Wayne

If you're good at investing you could take your interest free credit and put it into some short/medium term investments and make money that way.

I wouldn't do this. You are risking too much. CC companies can raise your rate for nearly any reason at all (the sun rose; it was a cloudy day; you missed a payment on some other card;

) If I were debt free, I'd use my own money to earn money and stay as far away from the CC companies as I can. Don't like them having power over me.

The borrower is slave to the lender. (From the Bible, I don't know where).

Oh, I am a tart, also. We call it surfing balances in the US, though. I do it all the time, and likely will until I get everything paid off!

-Jean

Tree0164 · #20 (**permalink**) 07-29-2005, 04:13 AM

Quote:

Originally Posted by jmjj215

I don't think it's quite on the same plane as Vegas (and I'm not saying I would do it), but there are people out there that make a bit of money doing just this. One guy I know (who makes a lot of money salary-wise) will get cash advance offers, interest-free for 9 months. One was for 30k! He has it in an ING account until the 9 months are up. That's over $700.

I personally don't think the hassle or worry is worth the $700. To each his own though - hopefully he doesn't get burned one of these days.

I still think that isn't the smartest thing to do. You are putting borrowed money at risk. Credit card companies change their provisions all the time. They love late fees too. Also don't most of these cash out offers come with a certain % charge.