Comments on: Why Avoid the 0% Balance Transfer Game? http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/ personal finance tips, tricks, and commentary Sat, 21 Nov 2009 22:11:52 -0500 http://wordpress.org/?v=abc hourly 1 By: yolanda http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-133557 yolanda Sun, 26 Jul 2009 13:57:17 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-133557 I am still confused whether a transfer would be good for me. I have excellent credit score, pay off card balances mostly at end of each month, but planning to do a $15,000 home repair. Would it be best to do a transfer and have disposable cash? I'd prefer to find a way not to take the funds from my very moderate savings. Thanks in advance for your ideas. I am still confused whether a transfer would be good for me. I have excellent credit score, pay off card balances mostly at end of each month, but planning to do a $15,000 home repair. Would it be best to do a transfer and have disposable cash? I’d prefer to find a way not to take the funds from my very moderate savings. Thanks in advance for your ideas.

]]> By: Jeff http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-128492 Jeff Thu, 05 Feb 2009 06:00:43 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-128492 Mostly the reason to avoid the 0% game is that you will spend the 0% money and then suddenly you will forget a payment and the rate will skyrocket. Enough people screw this up to make the companies a lot of money, that is why this free? lunch exists. For those that win, the winnings are now very small...i.e. a de facto 0% line for a year, no profit available due to this stupid credit crunch! Mostly the reason to avoid the 0% game is that you will spend the 0% money and then suddenly you will forget a payment and the rate will skyrocket. Enough people screw this up to make the companies a lot of money, that is why this free? lunch exists. For those that win, the winnings are now very small…i.e. a de facto 0% line for a year, no profit available due to this stupid credit crunch!

]]> By: Tom http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-118533 Tom Wed, 09 Jul 2008 16:44:26 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-118533 Thanks, I have checked it out already. I'll let you know how it goes if you like. Thanks, I have checked it out already. I’ll let you know how it goes if you like.

]]> By: nickel http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-118425 nickel Mon, 07 Jul 2008 15:09:13 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-118425 Tom: Pretty much all issuers now charge some sort of balance transfer fee, typically in the 3% range. You may be able to find some 6-9 month transfer without a fee, but if you're looking for anything in the 12 month range you're almost certainly going to wind up paying a fee. The good news is that a number of issuers cap these fees at $50-$75. My best advice is to dig around in my list of <a href="http://www.fivecentnickel.com/2007/01/02/zero-percent-balance-transfer-credit-cards/" rel="nofollow">0% credit cards</a>. Tom: Pretty much all issuers now charge some sort of balance transfer fee, typically in the 3% range. You may be able to find some 6-9 month transfer without a fee, but if you’re looking for anything in the 12 month range you’re almost certainly going to wind up paying a fee. The good news is that a number of issuers cap these fees at $50-$75. My best advice is to dig around in my list of 0% credit cards.

]]> By: Tom http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-118423 Tom Mon, 07 Jul 2008 14:59:49 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-118423 Thanks for this and other helpful posts. I just discovered your blog and I love it! Have you found any 0% credit cards lately without transfer fees? I paid for my college education and a new (2006) Honda Civic with 0% credit cards and I have been transferring them and paying them down for years (keeping the total debt under 12 grand) without ever paying any fees, even balance transfer fees. Now I cannot find a card and I have 3 months to pay my existing cards off. I have paid the cards down significantly and I have an "emergency fund" (about half of which are in CDs) so I will be able to pay the balance when it comes due. I have been able to take advantage of 0% credit for so long without paying a dime for it. Is it really over? Thanks for this and other helpful posts. I just discovered your blog and I love it!

Have you found any 0% credit cards lately without transfer fees? I paid for my college education and a new (2006) Honda Civic with 0% credit cards and I have been transferring them and paying them down for years (keeping the total debt under 12 grand) without ever paying any fees, even balance transfer fees. Now I cannot find a card and I have 3 months to pay my existing cards off. I have paid the cards down significantly and I have an “emergency fund” (about half of which are in CDs) so I will be able to pay the balance when it comes due. I have been able to take advantage of 0% credit for so long without paying a dime for it. Is it really over?

]]> By: Creditnine.com http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-78024 Creditnine.com Fri, 08 Jun 2007 03:15:13 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-78024 Good post.. you raised some interesting points that needs to be considered Good post.. you raised some interesting points that needs to be considered

]]> By: Jon http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-78016 Jon Thu, 07 Jun 2007 19:33:52 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-78016 Excellent post, and some good points raised. Here in the UK, we call the act of making money from investing money borrowed at 0% (or low rates) "Stoozing" (long story, but just Google it, or take a look at http://www.whatsthecost.com/stoozing.aspx). I "stoozed" for about 2 years, but stopped at the beginning of this year due to the fact that most credit card companys (in the UK at least) charge a balance transfer fee these days of around 2 to 3%. It's certainly not for the faint hearted, and although I made around £2,000 ($4,000) in two years (having 0% debt of over £40,000 at one point), I'm almost glad stoozing isn't as profitable as it used it be!... It does cause quite a lot of stress! :-) Excellent post, and some good points raised. Here in the UK, we call the act of making money from investing money borrowed at 0% (or low rates) “Stoozing” (long story, but just Google it, or take a look at http://www.whatsthecost.com/stoozing.aspx). I “stoozed” for about 2 years, but stopped at the beginning of this year due to the fact that most credit card companys (in the UK at least) charge a balance transfer fee these days of around 2 to 3%. It’s certainly not for the faint hearted, and although I made around £2,000 ($4,000) in two years (having 0% debt of over £40,000 at one point), I’m almost glad stoozing isn’t as profitable as it used it be!… It does cause quite a lot of stress! :-)

]]> By: David http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-78000 David Wed, 06 Jun 2007 20:29:48 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-78000 I was hurt by the 0% game. At one point, I thought it would be wise to consolidate my debt on a 0% interest card and pay it off quickly. I applied for it without knowing that someone had opened a loan in my name and it had defaulted. Well, I was approved for the card, but only for $300, not the several thousand I needed! This not only kept me from doing that, but it also hurt my credit even more in the long run, because it shows new creditors I can't be trusted with a high limit. Granted, they'd be right about that. To make it worse, there was a fee for transferring a balance. I was hurt by the 0% game. At one point, I thought it would be wise to consolidate my debt on a 0% interest card and pay it off quickly. I applied for it without knowing that someone had opened a loan in my name and it had defaulted. Well, I was approved for the card, but only for $300, not the several thousand I needed! This not only kept me from doing that, but it also hurt my credit even more in the long run, because it shows new creditors I can’t be trusted with a high limit. Granted, they’d be right about that. To make it worse, there was a fee for transferring a balance.

]]> By: The Happy Rock http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-77976 The Happy Rock Tue, 05 Jun 2007 14:47:36 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-77976 Great post. I see the 0% game pedaled a lot lately and I feel that people get caught up in the fact that they can make money off of other people dime. I think your time and energy is much better spent investing in people and ideas that will provide lasting and more valuable returns(changing spending patterns, start a business, etc). I don't think it is worth the effort, but you highlighted some great reasons why people should not consider trying to mess around in the 0% game outside of personal preference. Great post. I see the 0% game pedaled a lot lately and I feel that people get caught up in the fact that they can make money off of other people dime. I think your time and energy is much better spent investing in people and ideas that will provide lasting and more valuable returns(changing spending patterns, start a business, etc). I don’t think it is worth the effort, but you highlighted some great reasons why people should not consider trying to mess around in the 0% game outside of personal preference.

]]> By: Alex http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-77975 Alex Tue, 05 Jun 2007 14:18:13 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-77975 I don't think I will be in the market for a loan anytime soon, but I would like to know how long it would take my credit to normalize again after I stopped doing the 0% APR game, and again started having a low balance/limit ratio. Does anyone know? I don’t think I will be in the market for a loan anytime soon, but I would like to know how long it would take my credit to normalize again after I stopped doing the 0% APR game, and again started having a low balance/limit ratio.

Does anyone know?

]]> By: Credit Card Searcher http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-77970 Credit Card Searcher Tue, 05 Jun 2007 06:29:30 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-77970 Great post! But probably there are balance transfer card which are not to be avoided? It can't be so that all such cards are bad... Great post! But probably there are balance transfer card which are not to be avoided? It can’t be so that all such cards are bad…

]]> By: credit card compare http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-77969 credit card compare Tue, 05 Jun 2007 06:01:58 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-77969 Yeah, I also meant to make use of balance transfer credit cards to cope with my debt and save on it. But when I applied it appeared I had no sufficient credit for it. But then I thought that maybe it saved what credit I had as I would most probably miss payments on the new credit card and accumulate another debt. Yeah, I also meant to make use of balance transfer credit cards to cope with my debt and save on it. But when I applied it appeared I had no sufficient credit for it. But then I thought that maybe it saved what credit I had as I would most probably miss payments on the new credit card and accumulate another debt.

]]> By: Jonathan A. http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-77966 Jonathan A. Tue, 05 Jun 2007 00:43:01 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-77966 It's funny. I had been thinking about doing this today but was unsure of the reasons to avoid doing this. Thanks for the article! I'm a little bit more enlightened now in regards to the situation. It’s funny. I had been thinking about doing this today but was unsure of the reasons to avoid doing this. Thanks for the article! I’m a little bit more enlightened now in regards to the situation.

]]> By: Blaine Moore http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/comment-page-1/#comment-77960 Blaine Moore Mon, 04 Jun 2007 18:28:30 +0000 http://www.fivecentnickel.com/2007/06/04/five-reasons-to-avoid-the-0-balance-transfer-game/#comment-77960 Situation 6: You think that you could successfully remember to pay on time, you have fine credit, you aren't in the market for a loan, but you just have no interest in the amount of effort required compared to the return that you would get. That'd be my situation... heheh. Situation 6: You think that you could successfully remember to pay on time, you have fine credit, you aren’t in the market for a loan, but you just have no interest in the amount of effort required compared to the return that you would get. That’d be my situation… heheh.

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