What's to stop your from...

[XZeroII]

having 2 credit cards and charging $5000 to one of them. Come the end of the month, you put that $5000 charge onto your second credit card. Come the end of the next month, you use your first CC to pay off your second, etc... You just keep on looping through this. Of course you'd have to make sure you never miss a payment or anything, but does anyone do this? or know someone who has tried this? How well does it work?

 

[captains]

 

[new2AMD]

oye

 

I call that the credit swap game.
Usually you can't balance transfer between two cards like that.
So you need to get a few cards.

 

[minendo]

You'd have to start the second transfer before the first one completed.

 

[XZeroII]

Originally posted by: minendo
You'd have to start the second transfer before the first one completed.

Why? What your bill comes, you just pay for it with another CC.

 

[dman]

They have $ fees associated with cash transfers, at least on the account you are withdrawing from and sometimes on the zero-balance transfer too cards. So your balance will continue rising. But you could do it and buy yourself some time if you were strapped for cash, but, you'd probably be better off paying the minimum payment at least.

 

[TekChik]

yeah, you definitely need at least 3. that said, nothing can stop you (use the force, Luke!).

a family friend of ours had over 20K in credit debt back in the 80's and he did this swapping thing every month because balances transfers can have no interest for a few months and over 4 or 5 years he paid off the entire balance and never paid a cent in interest.

 

[minendo]

Originally posted by: XZeroII

Originally posted by: minendo
You'd have to start the second transfer before the first one completed.

Why? What your bill comes, you just pay for it with another CC.

The last transfer I did took 15 total days for everything to clear.

 

[Ausm]

Originally posted by: dman
They have $ fees associated with cash transfers, at least on the account you are withdrawing from and sometimes on the zero-balance transfer too cards. So your balance will continue rising. But you could do it and buy yourself some time if you were strapped for cash, but, you'd probably be better off paying the minimum payment at least.

I agree it is not to Intelligent

Ausm

 

[Encryptic]

Originally posted by: ausm

Originally posted by: dman
They have $ fees associated with cash transfers, at least on the account you are withdrawing from and sometimes on the zero-balance transfer too cards. So your balance will continue rising. But you could do it and buy yourself some time if you were strapped for cash, but, you'd probably be better off paying the minimum payment at least.

I agree it is not to Intelligent

Ausm

You might want to edit your post before saying that his idea wasn't intelligent.

 

[dman]

Originally posted by: TekChik
yeah, you definitely need at least 3. that said, nothing can stop you (use the force, Luke!).

a family friend of ours had over 20K in credit debt back in the 80's and he did this swapping thing every month because balances transfers can have no interest for a few months and over 4 or 5 years he paid off the entire balance and never paid a cent in interest.

Back in the 80's they didn't charge balance transfer fees on many cards. They got wise to that maneuver... at least all the cards I've read the TOS for. Now they charge cash withdrawl and/or balance xfer fees. Sometimes you'll get offers for cards that won't charge to bring over a balance but the card you are moving from will charge a percentage fee on balance xfer most likely. But if you can find a few cards that don't, you can do it.

Some people I know used to use the same concept to withdraw money at 0% and put it in savings at a higher percentage. Or use it to buy stocks (risky!). Again, that's much tougher to do now with all the not-so-clear fees.