Question
If you have the Citibank MyPoints credit card, or any other Citibank card with a 0% , no fee, balance transfer offer, here is a little known fact about the offer: You can call to get the "transfer" as a check to you. It charges to your credit card as a balance transfer, not a cash advance. Free loan, no fee, no interest for a year.
Ask for a "Direct Check" for $1 less than the full credit limit of the card (they won't give you the full limit).
Very carefully confirm that there will be no fee and 0% interest.
Carefully listen to the script they read to you before doing the final transaction. It should confirm 0% and no fee, and tell you when you have to pay off the loan.
If the rep doesn't know how to do this, ask for a supervisor.
Put the money you receive in an interest bearing account and each month pay $1 over the minimum required by the credit card (for less impact on your credit score) from that account. A Virtual Bank or ING Bank account would be fine for this. (I have info on these in the Banking section of the Finance page of my website, Free Frequent Flyer Miles (http://www.freefrequentflyermiles.com/index.htm).)
Or, if you are sufficiently financially disciplined, pay down a higher interest loan (such as a home equity loan) with the check. Just be sure you will be able to pay off the 0% loan when it becomes due.
As you pay down the credit card, you can make further balance transfers, either from another card (mileage producing, of course), or as another check to you.
To avoid finance charges on this card while using the 0% balance transfer feature, you must not make a purchase on it. Payments are always credited to the lowest interest rate debits first. This means that if you actually charge purchases to the card, you will be paying interest on those purchases, usually at a very high rate, until you completely pay off the card.
I am most interested to know if the regular customer reps know about this. Please let me know of your experience trying to get a Direct Check.
Alas, I am unable to find an offer for this card on the MyPoints or Citibank websites today. But if you already have the card, this works. I received my check yesterday. The advance was charged as an ordinary balance transfer within the 0%, no fee offer.
I have a message to Mypoints asking if the card is still avialable. My S.O. says she received a similar 0% no fee offer from Citbank for her A.T.&T. credit card.
Answer
Gary,
There are several Citi cards which offer 0% APR and 0 fee on balance transfers.
A few I could find are:
Citi HomeRebate Mastercard at http://tinyurl.com/3zycs
and
Citi PremierPass MC (regular, not the elite level) at http://tinyurl.com/6w3z3
Answer
Gary,
There are several Citi cards which offer 0% APR and 0 fee on balance transfers.
A few I could find are:
Citi HomeRebate Mastercard at http://tinyurl.com/3zycs
and
Citi PremierPass MC (regular, not the elite level) at http://tinyurl.com/6w3z3
Thanks. I think I wlll add a section on this subject to my website.
Has anyone else found Citbank cards with this offer? Especially cards without an annual fee?
Has anyone tried this with 0% no fee offers from other banks?
Answer
Thanks. I think I wlll add a section on this subject to my website.
Has anyone else found Citbank cards with this offer? Especially cards without an annual fee?
Has anyone tried this with 0% no fee offers from other banks?
Gary -- FatWallet Finance has extensive threads on O% BT's with no fees. I have personal experience with MBNA (several years ago -- it now charges a fee), Chase Platinum MC, and Discover (0% for life with immaterial monthly purchase). I may soon take BofA up on their 12-month offer too.
As you know, the only downside to these offers are the temporary hits to one's credit score. But, if you're not going to be buying a house or a car anytime soon, I really don't think this has any real negative consequences (assuming you have the discipline to pay back the principal at the end of the promo period).
Answer
I have personal experience with MBNA (several years ago -- it now charges a fee), Chase Platinum MC, and Discover (0% for life with immaterial monthly purchase). I may soon take BofA up on their 12-month offer too.
Most of the offers I have seen have a 3% fee for any balance transfer. But they usually have a cap of $50 or so, making them still worthwhile if your credit limit is high enough, and if you can use it fully. Do the ones you mentioned have a fee for transfer?
Do you know if these other banks allow you to get all of the credit limit up front?
Thanks.
Answer
Most of the offers I have seen have a 3% fee for any balance transfer. But they usually have a cap of $50 or so, making them still worthwhile if your credit limit is high enough, and if you can use it fully. Do the ones you mentioned have a fee for transfer?
Do you know if these other banks allow you to get all of the credit limit up front?
Thanks.
At the time I did my BT's, none of the 3 cards I mentioned charged a BT fee nor an annual fee. The BofA card I'm considering also does not charge either fee. However, it is quite common for these 0% offers to include a BT fee of 3% with a maximum cap ususually between $50 and $75. There are even some credit card companies that do not include a cap on the BT fee (possibly CapOne?)
If I understand your second question, all of these cards have let me effectively max out my credit line with an initial BT. (I think one of the companies -- I can't remember which -- had me leave a $50 cushion for some reason.)
Answer
If I understand your second question, all of these cards have let me effectively max out my credit line with an initial BT. (I think one of the companies -- I can't remember which -- had me leave a $50 cushion for some reason.)
By sending you a check?
Thanks.
Answer
Alas, I am unable to find an offer for this card on the MyPoints or Citibank websites today. But if you already have the card, this works. I received my check yesterday. The advance was charged as an ordinary balance transfer within the 0%, no fee offer.
I have a message to Mypoints asking if the card is still avialable.
MyPoints customer service says their card is no longer available. But yevlesh2 has posted (http://www.flyertalk.com/forum/showthread.php?t=381105) an excellent list of Citibank and other cards with 0% balance transfer offers.
Answer
By sending you a check?
Thanks.
I am certain I either got a check or a direct transfer to my checking account from MBNA (fee-free at the time, but that has since changed). My other BT's were made directly to credit cards.
I know I'm sounding like a broken record, but I know I've seen discussions of this topic in FatWallet, but I can't seem to find a concise thread at the moment. My recollection is that Chase (w/o a fee), Citi (w/o a fee), and MBNA (w/ a fee currently) are the most likely to send you a check, but others may be able to shed light on this matter.
Other possible strategies for you to consider if you want to get your hands on the money from a BT in order to save or invest include:
1) Pay down an existing HELOC with the BT, then immediately withdraw the money from the same HELOC (I know someone who has done this with some cards. However, some credit card companies do not permit BT's to HELOCs);
2) Over-pay another credit card and ask for a refund (mixed success depending on the identity of the other credit card; rumor has it that MBNA may even close your account down if you do this.);
3) Send the BT money to one of your debit cards, then withdraw the money from the account to which your debit card is tied (I've read this may work. YMMV)
Answer
Utilization over 90% of your credit line is a "red flag" on your credit report.
Answer
Utilization over 90% of your credit line is a "red flag" on your credit report.
On credit line of one account, or on total credit line from all accounts?
Please tell us your source of info.
Thanks.
Answer
On credit line of one account, or on total credit line from all accounts?
Please tell us your source of info.
Thanks.
My info is the same, that high utilization, both on a single account and/or across your total available credit, will lower your credit score. This is important if you're going to do something signficant credit-wise in the nearish future (buy a car on credit, buy a house with a mortgage, etc.) The numbers I remember are something like over 40-50% on any one card or over 20% of your total available credit. I don't remember the exact numbers. My info comes from the credit score geeks at http://www.creditboards.com/
Interestingly, apparently low total utilization also lowers your score. That's right, paying a lot of stuff off may well *lower* your credit score. Blame the idiots at FICO. :mad:
Personally, on some outstanding balance I have I went for the interest rates and ignored the utilization crap. I don't need to do anything significant credit-wise soon. I have my mortgage, won't be buying a car for a while, and just need to pay the least interest I can on this other stuff. Hell, credit-score wise I did something stupid: paid off my car loan with lower-interest credit card funds. But it's saving me $ in interest, which is my bottom line right now.