So, I don't know the accounting functions to calculate this gain by taking into account the min monthly fees and the interest per month on a varying balance. So I did it all manually on a spreadsheet. It looks like below.

month / cc debt / savings amt / int gain per month
1 / 12000 / 12031.55 / 31.05
2 /11792.88 / 11825.46 /30.08
3 /11588.95 /11621.32 /29.87
4 /11388.9/ /11420.97 /29.57
5 /11192.74 /11224.2 / 28.96
6 /10999.96 /11030.92 /28.46
7 /10810.31 /10841.78 /28.97
8 /10624.94 /10654.94 /27.5
9 /10441.84 /10471.34 /27
10 /10261.91 /10290.97 /26.56
11 /10085.16 /10113.76 /26.1
12 /9911.49 /9939.28 / 25.29
13 /9740.49 /9768.2 / 25.21
14 /9572.84 /9600.11 / 24.77
15 /9408.11 / 9434.95 / 24.34
16 /9246.25 /9272.67 / 23.92
17 /9087.22 /9113.3 / 23.58
18 /8931.03 /8956.64 / 23.11
19 /8777.51 /8802.81 / 22.8
20 /8626.76 /8651.58 / 22.32
21 /8478.55 /8503.05 /22
22 /8332.99 /8357.05 / 21.56
23 /8189.91 /8213.62 / 21.21
24 /8049.35 /8072.68 / 20.83


Int Gain after 2 years: 615.06
Int expenses and fees: 70.00
Int expenses fees and monthly 1 dollar purchases: 118.00

So If you look at your purchases as an expense for the deal you profit: 497.06
If you try and make the purchases, something you were buying anyway: Profit is 545.06

I did not go into a third year of calculations but interpolation tells me roughly you'd profit another: 219-30=$189. So is it worth it, that IS the question.

id be more interested to do this for a REI.

cowboyBill said:Several people have been asking how to get the 0% for life deal from Discover.
I found an ad in the August 8 issue of U.S. News and World Report for the
0% APR for Life.

This is a phone only offer 1-800-347-3575 during business hours Monday-Saturday.
The invitation code is FJQH.

It is 0% interest on transferred balances (max fee $29 per transfer) until
March 2006. 0% offer is extended with 2 purchases each month (any amount).
I called after 9pm EDT, and was still able to talk to a rep and apply for the card. Maybe it's still their biz hours? I requested two BTs with a total of 15K. I'm not sure if they'll approve me such a high line though. I'll have to wait and see...

Edit: You can still earn Cash Back on this card and it's reversed tierd (1% for the first $3000 per year). I didn't bother to ask for the details as I'm planning to use it mostly for 0% BTs, but it's good to know that I'll get a penny back when I have to make two purchases every billing cycle to extend the 0% APR offer. haha

Well, I guess I'm going to bite and go for this card. Too much potential to pass up on.

Thank you puddnhead:

I appreciate your compliment of my analysis. As I mentioned I did not know the accounting functions to quickly calculate this so I did it manually, monthly on a spreadsheet. The 70 dollars, is because in my case I want to transfer 2 balances cause I have two AMEX cards with significant balances with 0%sboth expiring in mid oct. I'm glad someone confirmed that my numbers were in the ball park. The 70 breaks down to 29+29+6+6=70. Thats the 6 dollars in 50 cent increments for a year. Plus another year of roughly the same interest. I was basing it on around 10% rate so I figured I'd make it through more than 2 years before the int reached above 50 cents a month. Either way thats close enough whether its 50 cents or 75 cents. Its nothing. Thanks again.

Ok, I just applied for this card. Not that it swayed me, but the guy said there was no such things as this offer with the two purchases having no minimum amount required. He said if I tried to make a purchase for less than 1 dollar that it will not complete the purchase and error out saying invalid amount. Either way, I'm in, we'll see if I'm approved. The only reason I might not be is cause I just applied for two citi cards last week, but those seem to have not moved my score AT ALL with experian even though I saw they had pulled experian reports. Its still hanging out at 761. Here we go, off into the wild blue interest free yonder.

giantmet said:Just called and I need to wait 2 weeks to find out if approved. I was told I that the 0% is on any balance transfer made by december 1st. so I did not do one at application in case they give me a small credit line and with a $29 fee wouldn't be worth it.

the 0% is good until march 2006 no purchases need to be made until 3/06. then in order to keep the 0% you need to make 2 purchases per month. no mention of a minimum amount.

Just applied. $8000 CL. I was hoping to get a larger limit, but I have a 3.99 and 2.99 fixed for life with no minimums that are more than 90% used, so I think this is putting pressure on my score and it has likely dropped below the magic 720, number which most banks use as the cut-off for the highest credit grouping.

I'll need to read the fine print before transferring my balance, but if there are no purchases needed until 03/06, this is great. I just need to remember to start doing the purchases when March roles around.

Also, the rep confirmed with me that there is no minimum amount for the purchases, so if you can get .01 or .10 charge to go through, then you are golden. I may try the idea of setting up a subscription with one of my Paypal accounts and paying myself for a small amount twice a month.

Thanks OP!

Got originally approved for only 6K but my request to increase credit limit to 14K has been approved! I plan to transfer my auto loan to this card which will save me $$$.

soonbaek, how did you go about requesting the increase in your limit??

patsan said:I signed up for the card and am supposed to get a response in a few weeks. Can somebody explain to me why you have to pay interest on the 2 purchases you make?
The purchases have a higher interest rate. The payment you make will be applied to the lower APR balance (0% in this case) first, therefore the purchases will accrue interest.