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15 mo 0% BT offer for 1% on my Barclays card

15 mo 0% BT offer for 1% on my Barclays card

Old Jun 10, 17, 8:07 pm
  #1  
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Join Date: Jun 2014
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15 mo 0% BT offer for 1% on my Barclays card

Can transfer to a bank account. This is like taking out a 15 mo loan at .8% annualized. Seems like a good deal if you can invest at a higher rate, no?
sedubby is offline  
Old Jun 11, 17, 3:33 am
  #2  
 
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What are the specifics? I'm reading your title as if Barclays wants you to transfer money to them (from other cc's) at 0% apr..... not that you can bt money from your card to other accounts.
skitch23 is offline  
Old Jun 11, 17, 8:14 am
  #3  
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It's a BT offer on an existing account... I can BT to the card by using a check...
sedubby is offline  
Old Jun 11, 17, 9:06 am
  #4  
 
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These offers are always available on Barclay accounts. Good use for low interest loans if needed.
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Old Jun 11, 17, 9:48 am
  #5  
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Haven't seen this low for existing accounts until now...I thought the low fee BT transfers were a thing of the past. 3% is standard and last time I got one from Citi it was 5%.
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Old Jun 11, 17, 10:33 am
  #6  
 
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Originally Posted by sedubby View Post
Can transfer to a bank account. This is like taking out a 15 mo loan at .8% annualized. Seems like a good deal if you can invest at a higher rate, no?
And if you lose $ on that investment, can you pay back the $ to Barclay?
Stoughton is offline  
Old Jun 11, 17, 12:36 pm
  #7  
 
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what about the impact to your CS?
12HRS is offline  
Old Jun 11, 17, 3:54 pm
  #8  
 
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Be careful if you have an annual fee on that card and its due before the term is upon that BT.
Khiaao is offline  
Old Jun 12, 17, 1:36 am
  #9  
 
Join Date: Oct 2014
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Originally Posted by Stoughton View Post
And if you lose $ on that investment, can you pay back the $ to Barclay?
Can't imagine he/she getting less than 1% if they invest wisely (w. less risk) - lots of low risk investment options..
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Old Jun 12, 17, 3:32 pm
  #10  
 
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Originally Posted by halluc1nati0n View Post
Can't imagine he/she getting less than 1% if they invest wisely (w. less risk) - lots of low risk investment options..
No one has ever lost money investing wisely in lots of low risk investments.
oops let me try again.
the 75 point credit score hit will damage u more than squeaking out one or 2% on your $10k credit line.
walk away
wrinkle7 is offline  
Old Jun 13, 17, 3:12 am
  #11  
 
Join Date: Mar 2010
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Originally Posted by sedubby View Post
Can transfer to a bank account. This is like taking out a 15 mo loan at .8% annualized. Seems like a good deal if you can invest at a higher rate, no?
You've got a basic scalp there as Ally's current yield on a savings account is 1.05% and I've seen that Goldman Sachs has an account whose current yield is 1.2%. This would translate to peanuts, though, for most people. I've seen people MS for such returns although I doubt that I'd do that.

Barclay's is the bank that usually has these 1% offers and Chase has a few 2% offers on some of their cards.

I can tell you what I have done in the past when I utilized these instruments. I have short-term savings that I keep in a place like Ally (usually about 1 months worth of expenses). Beyond that, I keep my mid-term savings in low beta stocks such as Altria, Exxon-Mobil, Pepsico which also provide a decent dividend (I shoot for 3%+/year). In this way, I spread my risk of a short-term correction that might impact my ability to sell these investments without incurring a loss. This is definitely a risk in the short-term but smooths out in the long game. For example, my initial investment in Altria ~9 years ago not including spinoffs has gone up over 500% and my dividend has doubled in that time frame to ~10%/year.

Of course, not everyone has the moral cojones to invest in companies like that so you would have to do your own due diligence as the risk in the market is there.

Here lately, I dollar cost average my mid-term savings so I usually prefer not to divert that to a loan payment unless one of the stocks that I follow takes a decent hit to its share price making it a decent buy in my eyes that may not last very long. The last couple of times that I've used these have been during times that my vacation budget was not sufficiently restocked from the prior one to allow me to take advantage of some deals that I found in transportation and/or lodging so I took the 2% hit for the loan. That, to me, was better than selling an investment earning more than that so as to be a net gain.

Regarding the credit score hit, it depends on your current setup. For me, I pay my cards to $0 every month and my current score is 802. However, if I took 20% of available credit for a vacation, most of the time it would drop to the 770's and the worst one was 764 for 2 months. At that level, I'd still be eligible for decent cards or vehicle loan terms from the major providers so I didn't worry about it. However, be advised that I don't MS or churn cards to the extent that many on this site do so take that into consideration.

Best of luck to you whatever you decide,
Oreto is offline  
Old Jun 13, 17, 4:24 am
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Originally Posted by wrinkle7 View Post
No one has ever lost money investing wisely in lots of low risk investments.
oops let me try again.
the 75 point credit score hit will damage u more than squeaking out one or 2% on your $10k credit line.
walk away
What is causing the 75 point credit score hit in the case of the original poster?
jiaogulan is offline  
Old Jun 13, 17, 6:31 am
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Originally Posted by jiaogulan View Post
What is causing the 75 point credit score hit in the case of the original poster?
100% utilization on a cc
wrinkle7 is offline  
Old Jun 16, 17, 1:13 pm
  #14  
 
Join Date: Feb 2015
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I have a 0% no-fee BT-to-checking offer on an existing Comenity card, 22k. So basically I'd be making about $250 and having to manage the payments for a year. I make that much every 2-3 weeks just from one 2% card without impacting my score at all, so I passed. It's not worth the credit score hit to me, as that would impact all my new potential CL's. But I was at first tempted, because this was how I got into the game initially.
TyroneSchulase is offline  

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