Balance Transfer Credit Card 1% fee, no APR for 1 year

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OneWorld111
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Joined: Tue Mar 20, 2012 9:59 am

Balance Transfer Credit Card 1% fee, no APR for 1 year

Post by OneWorld111 »

Hello BH:

I am eligible for a balance transfer at 0% APR till Jan 2016 and 1% fees on the amount I balance transfer. They can issue me check or transfer in account if needed.

My question is what are the things to keep in mind other than currency risk if I withdraw say $5000 ( fees will be $50, 1%) and send $4950 to foreign country where the fixed rate for 1 yr CD is greater than 4-5%. Repay the balance transfer before the APR goes up.

Is there anything else I need to factor in? Other than currency risk and taxes I need to pay in foreign country for the interest I will earn in CD.

Thanks,
energy1210
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wilpat
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Re: Balance Transfer Credit Card 1% fee, no APR for 1 year

Post by wilpat »

Remember that you must pay the minimum monthly payments.
Contrary to the belief of many, profit is not a four letter word!
takeshi
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Re: Balance Transfer Credit Card 1% fee, no APR for 1 year

Post by takeshi »

And the utilization on the card you're BT'ing to matters. Regardless of offer, prolonged high utilization can lead to adverse action from the creditor. 30% is a generally recommended maximum (card would need a $15K limit and no balance).
Topic Author
OneWorld111
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Joined: Tue Mar 20, 2012 9:59 am

Re: Balance Transfer Credit Card 1% fee, no APR for 1 year

Post by OneWorld111 »

Thanks.

I have factored in monthly payments and the card limit is $25K.
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ejvyas
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Location: Boston, MA

Re: Balance Transfer Credit Card 1% fee, no APR for 1 year

Post by ejvyas »

Does that CD have any FDIC kind of insurance?
Factor in transfer to and fro charges


How much do you expect by doing this?
avalpert
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Re: Balance Transfer Credit Card 1% fee, no APR for 1 year

Post by avalpert »

Currency risk isn't enough for you? For ~$150 in gains its hard to justify the effort and risk.
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BolderBoy
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Re: Balance Transfer Credit Card 1% fee, no APR for 1 year

Post by BolderBoy »

If you miss even one of their requirements, you'll lose big doing this. They have dozens of people thinking about how to get your wealth transferred to them. You are one person trying to think of the reverse. It is a fool's game in the long run.
Topic Author
OneWorld111
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Joined: Tue Mar 20, 2012 9:59 am

Re: Balance Transfer Credit Card 1% fee, no APR for 1 year

Post by OneWorld111 »

Thanks guys.

Provided me things to ponder..
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Watty
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Re: Balance Transfer Credit Card 1% fee, no APR for 1 year

Post by Watty »

energy2025 wrote:Is there anything else I need to factor in? Other than currency risk and taxes I need to pay in foreign country for the interest I will earn in CD.
Cyprus and Iceland

Currency conversion costs when you convert the dollars to and from that currency.

It could be an expensive nightmare for the people settling your estate if you die while the money is overseas.
avalpert
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Re: Balance Transfer Credit Card 1% fee, no APR for 1 year

Post by avalpert »

BolderBoy wrote:If you miss even one of their requirements, you'll lose big doing this. They have dozens of people thinking about how to get your wealth transferred to them. You are one person trying to think of the reverse. It is a fool's game in the long run.
I don't think this is necessarily fair - they have dozens of people thinking about how to get the most revenue from the broad market place and you are one individual that may have very different habits to the broad population and thus the structure they put in place which might maximize revenue overall could still very easily provide an opportunity for you to benefit.
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