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!**

rcross23

Also, another general question, not necessarily related to CC Churning, but maybe some of you more experienced individuals may know. What is to stop someone from getting multiple CCs with 0% introductory APR on balance transfers, and slowly pay off their debt, and transfer the debt to a new card once the 0% introductory period is over? Obviously you will pay fees each time, but that will come out a heck of a lot cheaper than paying 17%+ interest over the life of your debt. Anyone have any thoughts on this?

Stoughton

Nothing. People do it all the time.

As for your initial quesiton - the only problem I see is spending too much on the ring

LowFlyOver

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.

LowFlyOver

That's what I'm talking about. Now, you're thinking beyond just the miles!

rcross23

Interesting. I just really never thought about it I guess. Maybe a lot of people just don't know about it? Another perk of spending so much time researching for points is that you learn about these other things, which are often more important/valuable.

Haha I knew someone would make a comment like that. I did my research and made sure not to buy a ring outside of what I could comfortably afford. The problem was that I initially thought I would be paying 0% interest, and would like to save $500+ dollars if it really is this easy. Thanks for your concern though

rcross23

Another reason why I love these forums so much... I really appreciate the concern, and I mean that whole-heartedly.

The 0% introductory period is 15 months, and I plan to pay off the ring way before that. I was actually considering paying off the ring in the next month or 2 with a couple lump-sum payments once I found out about the interest rate. However, if I can do this balance transfer and take advantage of the 0% APR, while also fulfilling a few CC requirements, and not have the headache of trying to use reloadable cards or Amazon Payments, it seems like a winner all around.

particlemn

I would disagree that you purchased a ring you could afford if you did not have the cash to pay for it out right. The credit card companies love people whom carry a balance. even at 0% introductory rate. something will happen and the person will be too busy with somthing at work or something else and the fees will start racking up.
your math in the above caluculation is flawed there is no way to save 500+ on anything with 0% interest rate. only if the rate was negative could you actually save money paying over time.

yOyOYoo

This was a great idea back when they didn't introduce balance transfer fees...

With the fees of 3% and up per balance transfer, it's just not a smart idea to carry over any balance if it can be avoided.

Btw there are some cards still that have 0% intro APR and 0 balance transfer fees like the Chase Slate.

rcross23

You are certainly entitled to your own opinion, however flawed it may be. If you had the option to shell out $6,000+ in cash, or pay that balance off over time and pay 0% interest while doing so, I would argue that it makes no sense to pay it off in cash outright. I could take that money and invest it elsewhere and make money. Yes, if you are irresponsible and forget to pay it off before the 0% period ends, then of course it was a bad decision, especially if you could have afforded to pay it in cash right away. However, I had/have every intention of paying it off before that period is up, and in the meantime my money is working for me. I don't think you should automatically assume that you know my entire situation, and jump to the conclusion that I made an irresponsible decision or that I could not afford to pay for it outright.

Here, though, you are completely incorrect. I am currently paying 24% interest, so if my 2 options are to keep paying that or transfer the balance to a card with 0% interest for 15 months, and pay it off in the same amount of time under both of these options, I will save a SIGNIFICANT amount of money under option #2.

skibum7732

If you have cash to pay it off in a lump sum within the next month, why would you want to pay 3% ($180) for balance transfer? I agree to use AA cards for 6000 miles and meet min. spend on those 2 cards, but I would never pay $180 for balance transfer. You can meet that min. spend easily without losing $180.
Lesson hopefully learned...Always read the fine print before agreeing to anything

rcross23

That is true, and it would definitely be a more valuable option with no balance transfer fee, but in my situation, and certainly others, it can still be a smart move. For instance, my balance transfer fee would be just north of $200, but my savings will be $500+.

Good to know about the Chase Slate though. I will definitely look into that, and if I hadn't just done an App-o-rama, I would probably jump all over it. As it is, I will probably stick with my original plan in order to save a few hundred bucks and fulfill the requirements of the CC offers.

Thanks for the input!

rcross23

I'm glad you pointed that out. I don't know why I had exclusively thought of the balance transfer as part of using the AA cards. That would probably be a lot smarter move. I guess I would essentially be paying ~$200 in fees for 6,000 US airways points, which I'm thinking is way too much.

aubreyfromwheaton

Stoozing is sooooo 1996

balance txfr fees make it not worthwhile imo

but some 0% 0 fee offers occas come up still, just super small

rcross23

What is stoozing?