Question by Lydia: CHASE CREDIT CARD:Flipping 0% credit cards? Hi! Just wanting to pick your brain here. I have a single credit card that I use to maintain good source of credit. I pay off the total balance at the end of each month so that I dont have to pay any finance charges. However, i was thinking about getting a 0% card and making the minimum payment while investing the rest where I can get a 10% return. Then paying off the balance at the end of the introductory rate of 0% and doing it again. But, it would be better if I could just transfer the balance onto another 0% card. So on, and so on....... What is your experince with this? What is the best way to use these 0% cards so that I dont ruin my credit and get maximum return? Do you get lifetime loans @ single-digit % because my strategy will not work for some reason? Thanks in advance for your response! Best answer for CHASE CREDIT CARD:Flipping 0% credit cards?:
Answer by sassy25
Good luck try to find a 0% card A cash advance costs 3% and is not eligible for the 0% Finding an investment that pays 10% short terms is not easy. This is a formula for disaster
Answer by Frank Thosmas
carrying a balance will always hurt your credit score slightly just like having multiple cards will this is because the credit card companies dont like it when you take advantage of them as long is your total debt is less then 1/4 of your annual income the damage if any will be very small as for doing what you describe yes i have done this and still do it i got lifetime loans from bank of america but the last was a variable rate 3 points above prime my prior fixed life of the loan rates were done 3 years ago before the credit card companies got wise to what i was up to make sure the bank that underwrites your new card is not the same as the bank that underwrites your current card if they are they will refuse to do the balance transfer your main banks are discover bank of america chase manhatten bank your local bank whatever that is then citi bank ( shittybank ) crapital whoops capital one amex i have listed the banks in order of my preference of use and i warn you to never be late for shittybank or crapital one they will take advantage of your late payment to immediately raise your interest rate to 30% and charge 39 buck late fees because as their credit reps say we are entitled to do it so buyer beware good luck and i recomend you only do it with 5000 max as the payment is only 100 a month as an average and if you get shafted on the rate the interst at 24% is only 85-90 a month till you can get rid of the debt personally i have closed at my request 3 shittybank accounts a 25k a 7500 and a 3k sears account that shittybank took over and tried to shaft me on so really beware of them Reccomend Reading About Chase Credit Card: Review:Chase Credit Card Article: http://tinyurl.com/Review-Chase-Credit-Card Chasing a Chase Credit Card Articile http://tinyurl.com/Chasing-a-Chase-Credit-Card
Answer by Steve D
As mentioned, a 10% return is almost unheard of these days - gone are the days of 20% common stock returns and everything else is going to be extremely variable. Balance transfers come with a 2 to 3% fee, and assuming you can get even 7% on your investments, wipes out half your return upfront. Don't expect more than 1 or 2 0% cards - once the card companies see the transfer or end of teaser payoff, they will stop sending you these offers. Also, know that you can't transfer from 1 0% to another 0% when the cards are issued by the same holding company (i.e., a Chase subsidiary to another Chase subsidiary). Finally, not sure what you mean by lifetime loans, but if you are talking cash advances from the cards, they are very expensive - usually double-digit interest rates from the day of the advance (no 30 day payoff). Non-secured personal loans from a bank are around 10% for folks with good credit, which of course wipes out your investment returns. The bottom line is that it is almost never a good policy to use credit or credit cards to fund your investments.
Answer by David Z
do not borrow money to invest. very risky.
Answer by Apollo
0 % doesnt mean 0, if it was like that, all of us would take money out to get a nice return. I dont know ANY SAFE way of investing money and gettting 10 % in return, as the highest high interest account in the country (everbank) only offers a lame introductory 3% and thats for 3 months... and thats the safe, of course the stock market, bond and the rest is out of the equation. Your idea sounds fine, but only on paper, reality is a different story. Chase has some offers for customers at 0 % but you still will have to pay that 3 % balance transfer which is a bit pricey in this economy. If you have an emergency and need that money you will not be able to use it. If you get a new card, how do you plan to get the money out??? Have you looked at how much thats going to cost you? Credit card companies are REDUCING their risk by cutting limits to people with great credit. If you only have one card, and no other source of credit, (for how long you did not say) chances are they will give you a miserable limit, anywhere from 500 to 1000... and knowing chase, thats 500... if you are lucky. You can go ahead and try to prove me wrong and apply for the card anyways... you will most likely get denied or get a very low limit credit card. I suggest you save all the cash you can in a savings accounts for a rainy day. This economy is crappy, and the only things that will save you is what you have saved. Not even credit can save people now. Credit is great when you can pay for it, otherwise.... its not.
Answer by efflandt
A number of flaws in your plan. Where are you going to get a "certain" 10% on your money that will not possibly dip right when you need it back? Due to recently passed regulations that have not taken effect yet, many credit card companies have been raising interest rates (if not already high) or cutting credit limits. Chase also notified me that their normal balance transfer fee will be 5% (although, it might differ for balance transfer teasers). Those $ 75 balance transfer fee limits may be difficult to find. Note that you cannot transfer balances between credit cards issued by the same bank. And if you have over a certain debt to available credit ratio, new low teaser or 0% offers may not automatically arrive and may be difficult to come by. So you may be stuck with higher rates when the teaser expires. And if you get a low rate for lifetime of a certain balance, in order to keep that if general interest rates change, you might need to cancel use of that card for an account that will close when remaining balance is paid off. How would that look in your credit report and score if they show a balance with $ 0 credit limit? After all, the goal of teaser rates is to get you hooked on credit.
Answer by Watch IT!
nope. You'll take a huge risk for just a small gain.
Answer by Hopeful
When you have multiple credit cards, your FICO score goes down. Flipping is never free; there's always a transfer fee for the balance. In the current economy, it's better to remain debt free than to have holdings. The holdings can, and often do, disappear overnight.
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Credit Cards are a fixture in today's life. People from all walks of life use them for almost any and every financial transaction, from paying monthly bills to purchasing items off the shelf at groceries and convenience stores. No matter where a person goes these days, excepting perhaps for the absolute remotest corners of the earth, credit cards have become as acceptable as money, more so in some circumstances, because in foreign countries a credit card takes care of the usual bother of having a lot of travel funds converted into local currency.
But with so many different credit card providers out there, and each with their own sets of package deals that offer different credit card rates and advantages, how do you go about choosing one that suits your personal needs? Here are a few simple things to keep in mind when selecting a credit card that will give you the best rates for your lifestyle.
Look at the TYPE of card you'll need. While it may seem like a c redit card is a credit card, in reality there are many different types of cards available, just as in a bank there are many different types of accounts, each offering different features. Some of the more common types to choose from are as follows:
Student Credit Cards - As the name implies, these credit cards are designed to cater to the needs of students. Since students generally operate with limited personal funding, the credit ceilings offered by these cards is set to keep purchases made by students within a reasonable level. Also, the interest rates are set to lower levels, again because of the assumption that the people who use these cards wont have as much financial capability. They will generally be working part-time at best, so the rates these cards offer tend towards the reasonable. The biggest drawback to a student credit card is the credit ceiling; this, however, isn't such a drawback when you consider that the lower ceiling also allows the users to preserve their credit standing and not jeopardize themselves with overspending. If applying for a student credit card, look for ones with reasonable interest rates balanced with a credit limit that will keep expenses within the budget.
Business Credit Cards - These cards are tailored to be used by people running a business. The main purpose of these cards is to be utilized in place of a business owner using his/her own personal credit card to help pay for the overhead costs of his/her business. Business credit cards generally have larger credit ceilings than regular credit cards due to the expected expenditures involved in operating a business. The rates for these cards, and the corresponding credit ceilings, are usually based on the financial status of the business entity for which the card is meant. When looking at these cards, keep in mind the projected fiscal ability of your business. Get a business credit card that can cover your overhead costs, and make sure that the int erest rates are also at a level that your projected income can cover.
Zero-interest Credit Cards - these are credit cards that have 0% interest initially. The name does not mean that the card permanently does not incur interest; rather, these cards have an introductory period, usually stretching between 6 months to a year, where no interest is incurred. Regular rates are applied after the period is over, however, so it's a good idea to look at the interest rates and available credit ceiling after the initial introductory period expires.
Low Interest Credit Cards - these credit cards generally have a lower interest rate than others; unlike zero-interest cards, which offer no interest rates for an introductory period then switch to regular rates afterwards, low interest credit cards maintain a lower interest rate on credits incurred throughout the lifetime of the card. In the case of these cards, look at other factors when choosing one; there may be annual fees inv olved in maintaining the card, or lower credit limits, for example. Look into these when deciding on a low interest card to apply for.
Reward System Cards - these are credit cards which possess additional perks for usage. There are many types, including credit cards that offer airline mileage points, hotel credit rewards, gasoline points, and even cash reward credit cards. When looking at one of these credit cards, the interest rates of the card should of course be taken into consideration, but the main point is to see if the interest rates are offset by the rewards offered. AS long as the rewards suit your lifestyle, these cards make for a good option.
These are just a few simple tips covering the different types of credit cards available on the market. When choosing a credit card, finding the best credit rate isn't just a matter of looking for low interest cards; find one that suits your lifestyle and needs, and the rest follows.
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