Originally Posted by
rcross23
I have been lurking/posting in the Marriott forums for a decent while now, but have just (last night really) gotten into the CC game. I would love it if someone with more knowledge than me could tell me if this idea would work for me, and/or general thoughts on the idea. Please bare with me while I explain my situation.
I have recently bought an engagement ring for my fiance, and have been making payments on it monthly. Long story short, I was under the impression that I would have 0% interest on it for 1 year. Well since I had been making the payments early in-store, I did not receive a statement until last month, and noticed that I am being charged an awful interest rate. I called the phone number on the statement but they basically said that according to their rules, I wouldn't have qualified for interest-free financing based on what I put down at the time of purchase and they couldn't do much for me. I've been too busy with work to stop by the store, but have planned on doing just that.
Which leads me to the plan I just thought of due to my entrance into the churning game. I signed up for both the Citi AAdvantage Visa & AMEX which both have $3,000 minimum spend amounts, and the US Airways Premier World Mastercard, which (in addition to the other bonuses) offers 1 point/$ balance transfer, and offers a 0% APR on balance transfers for the first 15 cycles.
I'm thinking that if I go to the store, and make a $3,000 payment on both Citi cards (plus the remaining balance on the ring), I could then do a balance transfer from both cards to the US Airways card, thereby fulfilling both spend minimums on the Citi cards and getting an extra 6,000+ points on the US Airways card.
Does anyone see a problem with this idea?
**That was the meat and potatoes version of the plan. Before anyone says anything, I know that the US Airways card charges a 3% fee on balance transfers, but I have calculated it out and I will still save several hundred dollars in interest after taking into consideration this fee. So basically this is a win-win-win, if it works. I will save money on interest, I will fulfill the minimum spends on the Citi cards, and will earn the extra balance transfer points for the US Airways card. I only wish my student loans could be paid by CC!**
First, a disclosure: I have never done a balance transfer, so I can't respond to those implications. I'll let those with more experience handle that portion.
My thought: What is you plan for AFTER the US Airways card? Can you beat the interest rate with a HELOC or a personal loan, whether secured or unsecured? I would encourage you to think beyond just the credit card movements. Perhaps you should apply for a line of credit/loan first.