Would This CRAZY Balance Transfer Strategy Work?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
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honestjake
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Would This CRAZY Balance Transfer Strategy Work?

Postby honestjake » Sat Feb 20, 2016 11:22 pm

A few assumed premises:

1. Number of credit cards possessed doesn't affect credit score

2. Number of credit cards doesn't affect your approval odds for a new card

3. I will not use a card with an annual fee for quite some time


Here's the strategy I'd like to pursue:

1. Get card with 0% APR inro rate for >12 months

2. Build $2-3k balance, paying minimums of course

2. Around month 11, transfer the balance to a card with a 0% APR on Balance Transfers for X number of months, perhaps paying a 3% fee, perhaps not (Chase Slate)

3. Pay minimums on that card, of course

4. Whenever the 0% intro deal is close to expiring, transfer the $2-3k balance to another card with a 0% APR on Balance Transfers for X number of months

5. Continue this until I can no longer find any more, right now I have at least 3 cards lined up, giving me at least 3 years


I know:

1. Each card will have to be with a different bank

2. The Chase Slate is clearly the best card to do this with, I wouldn't want to pay 3% ($60-90) Balance Transfer Fee more than once

3. This probably isn't the wisest decision, haha


Before applying for the next card, I would call and make sure that they would accept my balance transfer.

Any flaws with this plan? Maybe this is more common than I think? Let me know what you think!


Tubpbs
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Re: Would This CRAZY Balance Transfer Strategy Work?

Postby Tubpbs » Sun Feb 21, 2016 5:52 pm

honestjake wrote:A few assumed premises:

1. Number of credit cards possessed doesn't affect credit score

2. Number of credit cards doesn't affect your approval odds for a new card

3. I will not use a card with an annual fee for quite some time


Here's the strategy I'd like to pursue:

1. Get card with 0% APR inro rate for >12 months

2. Build $2-3k balance, paying minimums of course

2. Around month 11, transfer the balance to a card with a 0% APR on Balance Transfers for X number of months, perhaps paying a 3% fee, perhaps not (Chase Slate)

3. Pay minimums on that card, of course

4. Whenever the 0% intro deal is close to expiring, transfer the $2-3k balance to another card with a 0% APR on Balance Transfers for X number of months

5. Continue this until I can no longer find any more, right now I have at least 3 cards lined up, giving me at least 3 years


I know:

1. Each card will have to be with a different bank

2. The Chase Slate is clearly the best card to do this with, I wouldn't want to pay 3% ($60-90) Balance Transfer Fee more than once

3. This probably isn't the wisest decision, haha


Before applying for the next card, I would call and make sure that they would accept my balance transfer.

Any flaws with this plan? Maybe this is more common than I think? Let me know what you think!


It might work. Probably will. The question is why would you want to have a three year plan on floating 2-3K in debt. There's nothing you could do over a three year period (or a significantly shorter period) to earn an extra 2-3K???

If this is for sport, than it is just a purely terrible idea.

But it will probably work if you behave appropriately with all your credit throughout the process...
Last edited by Tubpbs on Sun Feb 21, 2016 8:46 pm, edited 1 time in total.
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CarefulBuilder14
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Re: Would This CRAZY Balance Transfer Strategy Work?

Postby CarefulBuilder14 » Sun Feb 21, 2016 7:19 pm

I'm kind of confused as to why you want to do this. Are you in debt, or do you expect to need to carry a balance soon? Do you just like the idea of having free use of money for a while? Are you trying to invest money instead of using it to pay a balance off immediately?

It sounds like it could work, but that doesn't mean it's sensible.
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Nixon
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Re: Would This CRAZY Balance Transfer Strategy Work?

Postby Nixon » Sun Feb 21, 2016 8:32 pm

Never pay just minimums.
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takeshi
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Re: Would This CRAZY Balance Transfer Strategy Work?

Postby takeshi » Mon Feb 22, 2016 8:45 am

honestjake wrote:Any flaws with this plan?

Accumulating debt would be the major flaw.

What are you specifically looking to accomplish?

honestjake wrote:A few assumed premises:

1. Number of credit cards possessed doesn't affect credit score

2. Number of credit cards doesn't affect your approval odds for a new card

3. I will not use a card with an annual fee for quite some time

Not directly for 1 & 2 but that applies to many things. Number of cards will play a part in AAoA which is certainly a factor that is considered for scoring and approvals.

Not sure why 3 is relevant.

honestjake wrote:Build $2-3k balance, paying minimums of course

You need to consider revolving utilization, not balance and minimums. $2-3K could be no big deal or it could be a very big deal depending the limit.

honestjake wrote:Around month 11, transfer the balance to a card with a 0% APR on Balance Transfers for X number of months, perhaps paying a 3% fee, perhaps not (Chase Slate)

Again, revolving utilization is what matters. If $2-3K leads to high revolving utilization then don't count on getting another card to BT.

Nixon wrote:Never pay just minimums.

Details matter. I have several cards where I'm just paying the minimums but these cards have 0% offers and very low revolving utilization. Every other card is paid in full and my credit profile is strong. I'll have to increase payment amounts to pay them off before their offers expire though. Someone in a different situation could certainly end up in trouble paying only the minimums. I'd generally advise against it but, again, details matter.

honestjake
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Re: Would This CRAZY Balance Transfer Strategy Work?

Postby honestjake » Mon Feb 22, 2016 10:36 am

haha thanks everybody, i think i have the answer i'm looking for

yes, the main purpose would be for investing or travel

and also for sport

i know credit card debt is dumb, thanks for reinforcing the principle

thom02099
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Re: Would This CRAZY Balance Transfer Strategy Work?

Postby thom02099 » Mon Feb 22, 2016 10:44 am

3. This probably isn't the wisest decision, haha

Bingo! We have a winner.

As CarefulBuilder asked, why would you want to do this?

I'm sure there's folks over at MF who have not only done this, but would encourage it. These are the same folks that consider credit as a competitive sport.
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honestjake
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Re: Would This CRAZY Balance Transfer Strategy Work?

Postby honestjake » Mon Feb 22, 2016 11:33 am

thom02099 wrote:I'm sure there's folks over at MF who have not only done this, but would encourage it. These are the same folks that consider credit as a competitive sport.


Where is this "MF?"

Nixon
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Re: Would This CRAZY Balance Transfer Strategy Work?

Postby Nixon » Mon Feb 22, 2016 12:05 pm

honestjake wrote:
thom02099 wrote:I'm sure there's folks over at MF who have not only done this, but would encourage it. These are the same folks that consider credit as a competitive sport.


Where is this "MF?"


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CarefulBuilder14
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Re: Would This CRAZY Balance Transfer Strategy Work?

Postby CarefulBuilder14 » Mon Feb 22, 2016 3:09 pm

A land where people who spend three figures per month on credit cards want to have six figures of available credit.
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when



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