Comments on: How Banks Make Money off 0% Balance Transfer Credit Cards http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/ Tue, 16 Mar 2010 14:53:24 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Poor Credit News » Blog Archive » How Banks Make Money of 0% Balance Transfer Credit Cards http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10945 Poor Credit News » Blog Archive » How Banks Make Money of 0% Balance Transfer Credit Cards Tue, 12 Feb 2008 01:55:31 +0000 http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10945 [...] mschenkel wrote an interesting post today onHere’s a quick excerpt0% balance transfer cards can be great for people in debt. Once they’ve become dedicated to paying it off, you can do so without it accruing more interest. But how do the credit card companies make money off carrying your balance at 0%? … [...] [...] mschenkel wrote an interesting post today onHere’s a quick excerpt0% balance transfer cards can be great for people in debt. Once they’ve become dedicated to paying it off, you can do so without it accruing more interest. But how do the credit card companies make money off carrying your balance at 0%? … [...]

]]> By: Ron@TheWisdomJournal http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10834 Ron@TheWisdomJournal Mon, 11 Feb 2008 02:35:01 +0000 http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10834 Hello Mrs M! First thanks for stopping by my blog and leaving a comment. Second, thanks for the warning on these credit cards. I'm about to transfer a balance to Bank of America because they offered me 1.9%. I'll be sure and check on the due date and will probably set up an automatic payment to insure I don't slip up! Thanks for bringing this to my attention. :) Hello Mrs M!
First thanks for stopping by my blog and leaving a comment. Second, thanks for the warning on these credit cards. I’m about to transfer a balance to Bank of America because they offered me 1.9%. I’ll be sure and check on the due date and will probably set up an automatic payment to insure I don’t slip up!

Thanks for bringing this to my attention. :)

]]> By: Heidi http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10811 Heidi Sun, 10 Feb 2008 21:54:01 +0000 http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10811 Good advice. I did a post very similar to this a few months ago. See http://bankergirl.com/archives/27 You really do need to read the fine print before accepting an offer from any bank that wants to refinance existing balances. Good advice. I did a post very similar to this a few months ago.

See http://bankergirl.com/archives/27

You really do need to read the fine print before accepting an offer from any bank that wants to refinance existing balances.

]]> By: RacerX http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10806 RacerX Sun, 10 Feb 2008 21:01:33 +0000 http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10806 Nothing wrong with consolidation, as long as it leads to savings! Not just to get more credit! Nothing wrong with consolidation, as long as it leads to savings! Not just to get more credit!

]]> By: Simple Tam http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10789 Simple Tam Sun, 10 Feb 2008 19:00:45 +0000 http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10789 Great advice Mrs.M, you bring up a couple of points I had not thought about in my post. I guess that means that you cannot use the CC with the balance transfer even if it not maxed out. I should make a note of that. Great advice Mrs.M, you bring up a couple of points I had not thought about in my post. I guess that means that you cannot use the CC with the balance transfer even if it not maxed out. I should make a note of that.

]]> By: CanadianSaver http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10775 CanadianSaver Sun, 10 Feb 2008 15:27:42 +0000 http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10775 I haven't been able to find any of these 0% offers in Canada... the lowest is 1.97%... and I've used those and they are to my advantage. I know some people who are debt free, with great credit, how get the 0% offers, take out large, large sums ($40,000 or so) and stash the whole thing at a 4-5% rate... it's a way to make interest off the CC companies I guess. I haven’t been able to find any of these 0% offers in Canada… the lowest is 1.97%… and I’ve used those and they are to my advantage.

I know some people who are debt free, with great credit, how get the 0% offers, take out large, large sums ($40,000 or so) and stash the whole thing at a 4-5% rate… it’s a way to make interest off the CC companies I guess.

]]> By: lc http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10774 lc Sun, 10 Feb 2008 15:19:40 +0000 http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10774 That's good advice. I'd like to add that if you're not using 0% APR credit cards to pay off your debt, you can still benefit from them by borrowing the interest-free money and invest it. The most low-risk investment would be a savings account such as ING where you can earn around 5% interest. That’s good advice. I’d like to add that if you’re not using 0% APR credit cards to pay off your debt, you can still benefit from them by borrowing the interest-free money and invest it. The most low-risk investment would be a savings account such as ING where you can earn around 5% interest.

]]> By: Funny about Money http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10772 Funny about Money Sun, 10 Feb 2008 14:53:56 +0000 http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10772 What a rip! And it's interesting to know, from what Dad says, that this has been going on from Day One. I got my first credit card about in 1966 when a neighbor put me up to taking out an application. She was working for the bank and got a commission for everyone she signed up to MasterCard. Not knowing what to do with it, I used it as a check-cashing card--in those days retailers wanted a driver's license AND some other form of ID, and they would accept credit cards for the purpose. ID theft had not yet been invented. Never charged anything on it, 'cause even then I could see that way lay bankruptcy. Eventually a MasterCard rep called me on the phone and asked winsomely what was the matter that I wasn't charging things on my wonderful card! LOL! Good thing I didn't, apparently: I never read all that fine print Dad remembers so well. What a rip! And it’s interesting to know, from what Dad says, that this has been going on from Day One.

I got my first credit card about in 1966 when a neighbor put me up to taking out an application. She was working for the bank and got a commission for everyone she signed up to MasterCard. Not knowing what to do with it, I used it as a check-cashing card–in those days retailers wanted a driver’s license AND some other form of ID, and they would accept credit cards for the purpose. ID theft had not yet been invented.

Never charged anything on it, ’cause even then I could see that way lay bankruptcy. Eventually a MasterCard rep called me on the phone and asked winsomely what was the matter that I wasn’t charging things on my wonderful card!

LOL! Good thing I didn’t, apparently: I never read all that fine print Dad remembers so well.

]]> By: mrsmicah http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10771 mrsmicah Sun, 10 Feb 2008 14:24:44 +0000 http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10771 I like your advice, Veteran Military Wife, about dividing it up by months and figuring out what you should be able to pay. That should help avoid an extra balance at the end. I like your advice, Veteran Military Wife, about dividing it up by months and figuring out what you should be able to pay. That should help avoid an extra balance at the end.

]]> By: Veteran Military Wife at Life Lessons of a Military Wife http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10769 Veteran Military Wife at Life Lessons of a Military Wife Sun, 10 Feb 2008 14:03:23 +0000 http://financefreelancelife.com/2008/02/09/how-banks-make-money-of-0-balance-transfer-credit-cards/#comment-10769 The only way to use these as your benefit is to do your balance transfer...then cut up the card. Before you ever transfer your money, divide the amount owed by months the offer is valid...and if you can pay that off each month WITH NO PROBLEM, then go ahead and do it...you've got to change your spending habits or you'll never get ahead! The only way to use these as your benefit is to do your balance transfer…then cut up the card. Before you ever transfer your money, divide the amount owed by months the offer is valid…and if you can pay that off each month WITH NO PROBLEM, then go ahead and do it…you’ve got to change your spending habits or you’ll never get ahead!

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