0% APR on balance transfers for life!
April 13th, 2006 by KenricI get this nice pre-approved application for Discover today which says 0% APR for life. Of course there is a catch to it. 0% APR is on balance transfers until Nov 2006. However, you can keep extending the 0% APR as long as you make two purchases or cash advances per month. If you don’t do that, you balance transfer APR goes up to the regular rate which is 13.99%.
If I were to do this, I would have to ensure that I got a high limit on my Discover card, say $25,000. Then I would have to take cash-advances from my other credit cards using the free checks that don’t charge 3%. I could conceivably take out $24,000 and stick it in my bank account. Then I would immediately transfer the balances all to Discover.
I’m sure that the people at Discover are banking on most people forgetting to use their card twice in a month thereby ruining their 0% APR. So the next thing to do is to make sure that you always use the card at least twice a month. I would probably pay my cell phone bill and groceries with it just so I know it’s being used.
I don’t need the $24,000 now, but at 0% APR for life, it’s tough to pass up in case a deal comes by.
Posted in Finances | 3 Comments »
Stumble it!
Another thing you may want to verify is the transfer fee. I’ve had MANY credit card offers over the years that put 0% everywhere, yet when you read the fine print, they’ll forget to tell you about the stamdard 3% balance transfer fee associated with the offer. Very rarely have I gotten a CC offer that says 0% APR on purchases, 0% APR on balance transfers and 0% on balance transfer fees (although, I have gotten them).
By Steve on Apr 17, 2006
Most likely you will have to pay off the entire balance in the first month or else you’ll be charged interest on the purchases. All payments are usually applied to whatever balance has the lowest interest rate (your balance transfer rate at 0%). So that will leave your new purchases on the card accruing interest at whatever rate they charge for purchases. It’s tricky, I got screwed on an offer like this before.
By Anonymous on Apr 17, 2006
i actually had a real 0% for life on att universal card when in college. but i’ve been paying the minimum $35 through my bank autopay. now several years later i realize i’ve overpaid several hundred dollars worth!
By Empty Spaces Inc. on Apr 22, 2006