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Credit Card checks

My credit card company is making me the following offer with some convenience checks:

3% fee (minimum $5, maximum $200)
0% APR until 3/2009
4% APR until the balance is paid off

I can borrow up to $34,000.

Normally I just put these things into the shredder, but 4% APR is tempting. That's better than Alisa's auto loan.

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3 comments to Credit Card checks

  • Lemme guess, Bank of America (née MBNA)?

    1 important thing you probably know, but I figured I should check: the credit card companies apply your payments to lower APR items before higher APR items.

    In other words, if you have any other balance on the card before/during this time at the normal APR, it will stay on the balance collecting it’s much higher interest until you’ve paid off all of the 4% balance.

    In other other words, make absolutely sure the card has a $0 balance before you do this, and don’t use this card for anything else until it’s totally paid off.

    And, once upon a time, I had a nearly identical offer from MBNA. I was asking around my friends to see if anyone could come up with someplace to dump the money for 6 months which would be guaranteed to make more money than I was paying in fees/interest. No one could come up with anything that could guarantee me more than a $100 profit a year on a $30k balance, so I didn’t do it. Ross’s answer was te funniest though: Foxwoods, roulette, 30000 on black.

    • I was asking around my friends to see if anyone could come up with someplace to dump the money for 6 months which would be guaranteed to make more money than I was paying in fees/interest.

      Well, I doubt there’s any way to guarantee beating 4%, but I could definitely take the money and pay off Alisa’s auto loan. And I can think of a lot of ways I can probably beat 4%.

      Ross’s answer was te funniest though: Foxwoods, roulette, 30000 on black.

      Heh. :-)

    • Oh, and the offer is from Chase, actually.

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