I have 3 citi credit cards that I’ve kept just sitting around from 0% APR balance transfers from years past that I’d used. Last week I checked my account online and found 2 of them had 0% offers waiting with the 3% fee, good for 16 months. I happily took both offers and just received and deposited my checks. Spread over that period of time it’s like paying 2% for your money which is pretty darn cheap!
I got the Platinum Select card for an AOR a few years ago and been getting so-so offers for 0% BT for 6-7 months with $75 capped fee or longer than that, but no cap. Last week I got an offer with a capped fee and 0% for 9 months so I went ahead and pulled the plug. Back in the AOR game with $8,000 to a 5% checking account. Not much, but as you have said, it’s a start
es21729: Does Citi actually send you checks to deposit into your checking account, as opposed to paying off another credit card directly?? Also, what will you be using the BT checks for?? I’m assuming that you aren’t investing that money into a high-yield savings account.. Right??
“But actually, with the new credit card regulations, all your payments now go towards the balance with the highest interest rate instead of lowest.
Is this a good thing or a bad thing in this case of 0% BT transfer & 0% purchases. If I have $10,00 credit and I take 0% offer on the $10,000 and I continue with Minimum Payments till the end of 18 months, am I paying $300 for loaning this amount for 18 months? I am sorry, but just trying to understand so as to decide if I should pursue this offer.
I do have higher HELOC debt (although only 1.25% higher at prime rate). However I look at it this way – besides saving that small spread, it’s also a bit of a forced savings opportunity (or forced debt payoff if you want to look at it that way) as I will still have to make the minimum monthly payments to the credit cards where I transferred the balance from which effectively lowers the principal amount I have to pay back at the end.
That said, if anyone has a better way for me to maximize this opportunity please speak up!
Thanks for the info. FYI – I already got the card but they the only gave me 7 months. I havent had a chance to call and ask why. I am sure its my credit. I put all my work expenses on the card and they get reimbursed so I dont have to pay the balance transfer fee – just a suggestion.
Can anyone shed some light on this? I have a Citi card and on the balance transfer promotions, in the Terms and Conditions it says, “Payments are allocated to pay off lower APR balances before higher balances.” Is this legal considering the CARD Act, or because I am voluntarily accepting those terms?
Jason you can find the high yield rewards checking accounts here http://www.depositaccounts.com.....ounts.html They usually have a few requirements to get the rate. Something similar to 12 debit transactions, 1 direct deposit, and 1 bill pay every month and keep bal under 30k
@jffryz – I did not get a cash advance, as far as I know the deal is only on balance transfers.
@Jason – yes Citi will send you a check if you request it. Or you can have them directly pay off another account of yours. I opted to get a check and deposited it. As far as what I did with the $, as I described in another post (see above) I used it to pay down higher interest debt. I am not aware of any “high interest savings accounts” that pay out a higher rate than what this money is costing me.
Mike: Thanks a lot for the info!! I had no idea that there was such a thing! Can you personally recommend any banks that have the “rewards checking” product?? I think I’ve narrowed it down between Danversbank, and First Security Bank and Trust.
es21729: Thanks for the tip as well! Good to know for future reference. Do you happen to know if all of the CC companies offer the ability to get a check to deposit into your bank account, rather than paying off the balance on another card directly??
I have an existing Citi card which is offering me an even better balance transfer deal (longer duration). It’s a Home Rebate Platinum Select Mastercard. I currently have zero balance on it and 9,000 limit. The offer is as follows:
respond by 6/28/2010
0% APR on balance transfers until 2/1/2012 (21 months)
3% transfer fee minimum $5
@Jonathan – That is exactly what I thought. In order to get some $$ on a 0% offer, I was going to make a large payment, then have the money sent to myself. But I checked the T&C on the actual balance transfer that I would be doing (so, must be fresh and not a holdover from 2 months I’d guess) and that little gem popped up.
Might be worth it for me to send them a quick email…
I’ve never done a BT that had a transfer fee, but now I’m considering it. How is the fee assessed? Do you just pay it as a lump sum with your first CC payment after you make the transfer? Is it deducted from the amount of the transfer? Something else…?
Hm, two different answers. This would actually be a different offer from Citi than the one above – I have an existing card with them and they’re offering me a 0% BT until March 2012 with a 4% transfer fee (new one to me!). So, the purchase APR isn’t actually 0%.
I currently have rewards checking accounts with malvern federal savings and bank of the sierra. I went with two companies just in case rates drop with one of the other. The convenience of not having to look for an ATM and the fact that ATM fees up to $25 are waived each month is enough incentive for me to have the rewards checking accounts. The 4% is just a bonus for me. I would suggest charging the balance to the card so you don’t have to pay the balance transfer fee. This works great for me because I have lots have expenses for work every month. This will probably not be for everyone. If this is not an option I would suggest having citi send you a check instead of having them pay another balance. My experience is if they pay off another account its just takes longer. The balance transfer fee is immediately added to the account once the transfer is made if that isn’t clear for everyone. For example if you had citi send you a check for $3000 the balance on the account would be $3000 plus $90 for fee for a total of $3090. Your credit limit would need to be at lease $3090 to complete the $3000 balance transfer.
Another great rewards account is consumers credit union. I have never used them but I am probably going to switch to them. https://www.myconsumers.org/site/acc_rewardschking.asp Consumer credit union also offers very competitive rates on mortgages and vehicles. Vehicles loans at as low as 2.49 if financing a 2005-2010 vehicle for 36 months. It looks like malvern dropped their rates all the way down to 1.49% APY for rewards checking so you will want to forget about them. Bank of the sierra is at 4.09% APY and consumer credit union is at 3.59% APY.
Question: I had an older balance transfer with Citi Platinum MasterCard with about $9000 left to pay at 2.99%, no time limit. Two months ago I took out another balance transfer for $10,000 with the same card, also a 2.99% rate with the 3% fee, with the promo rate due to expire 9/1/2011. The two promos are shown separately on my monthly bill. I plan to pay off the most recent promo just before the 9/1/2011 ending period so as not to get into a higher APR…… BUT, it just occurred to me that since the two promos have equal APRs, Citi might allocate my payment to the older promo (which has no expiration date), and then raise my rate on the newer promo. My question is do you think they will agree to my request to allocate my payoff when the time comes next year to the promo with the expiration date? Thanks in advance for any info.
Here is a link to Citicards payment FAQs. #4 How will payments post to my account if I have multiple deferred interest promotions?
They will be applied based on expiration date, starting in order with the soonest expiring promotional purchase to the latest expiring promotional purchase. https://www.citicards.com/cards/wv/copy.do?screenID=1907
Thanks for the quick response Mike. That was really good news for me, as it sounds like I will be able to keep my older 2.99% promo indefinitely. I guess that rule was a result of the Credit Card Act, because it’s not in Citi’s interest to let me keep the low rate. Mymoneyblog is the greatest!
I got some checks in the mail with 0 apr til Dec 2011 with 4% transactin fee.But I see where it says “We wll begin charging interest on these checks on the transaction date”.This sounds like a gimmick.But I really need the money to pay off some credit cards so I dont get charged for a whole years interest.Anybody know anything about this?
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