0% BT money - is it slowly coming to an end?

Over the past 3 months I've noticed a SIGNIFICANT change in the terms for BTs and cash convenience checks from two banks, MBNA and Chase.

Previously:
0% BT/CA with a 3% fee ($10 min, $50-75 max)

Currently:
0% BT/CA with a 3% fee ($10 min, NO MAX)

For me, this effectively eliminates these two banks as sources for 0% BT money, as 2+% is not worth the time and hit to my credit score (others may disagree, and that is their right).

I am sure this has been mentioned DEEP in some BT thread somewhere, but I thought it was relevant enought to be mentioned in its own thread for those considering App-O-Rama's and the like.

still plenty of 0% BTs with $75 max transfer fee available

In the past 2 months I have done 3 BTs, including two with Chase (both for over $10k). Both have come with a $75 max fee. Although I do have to agree that if rates keep going up you gotta figure that the good BT terms are going to end. We can only hope not.

Perhaps it's my bad luck, but there is just a smell in the air.

I think that once other banks get wind of it, we will se fewer and fewer of these hot offers.

However, if rates continue to rise, I may just suck it up and eat the 3%. But I have to make at least 3% for it to be worth MY time (again others may have different thresholds).

xpguy said: actually Chase just sent me some convience checks in yesterday's mail:

"A fee of 3% (minimum $5; maximum $75) applies to the amount of each transaction from this offer"

Mine said that as well (they came about a week ago).

However, the checks that came with the statement today had the wording changed. And there was an offical change to the T+C in there as well.

geo123 said: I have an approximately $50K CL with Chase and I've been getting these 0% $75 BT transfer offers every month for at least a year and a half (I have about $45K outstanding with them right now).

Well, I have 78K CL w/ them and have been getting them every month as well.

This is a change from the status quo (for some at least).

geo123 said: brentpresley said: Well, I have 78K CL w/ them and have been getting them every month as well.

This is a change from the status quo (for some at least).My suspicion is that if the banks were tightening up their BT standards for everybody, we'd have a lot more posts like yours. The way it stands now, it just appears that you have for whatever reason temporarily fallen out of the target zone for such offers. It is certainly conceivable that this is a sign of things to come but at this time we really don't have any evidence that that is really the case.

I agree with geo123. For my first two years with Citi Dividend I spent at least 18 months on 0% APR no BT fees. Then they started sending me 5.99%/3% BT offers and I thought it was all over. But I just turned them down and eventually the 0% offers came back.

Although one trend that I know most people on here don't like but I love are the 1.99% for life offers. Yes, I'm giving up 2% but at the same time I don't have to desparately search around for offers every 12 months. I can AoR at my leisure and I can also, relatively safely, invest in more long term investment products.

Although one trend that I know most people on here don't like but I love are the 1.99% for life offers.
I agree. Its nice to have just in case...

A clip taken from the Wikipedia Article on Arbitrage reads: "Arbitrage has the effect of causing prices in different markets to converge. As a result of arbitrage, the currency exchange rates, the price of commodities, and the price of securities in different markets tend to converge to the same prices, in all markets, in each category. The speed at which prices converge is a measure of market efficiency."

The market efficiency is the variable that prevents or enables equilibrium.

It seems to me, that if more people were doing the 0%, it would eventually stop being available. On the flip side, cc companies hope that you'll screw up or default so they can jack your rates and actually make some money off you.

Regardless, my opinion is that these offers will stay around, because there will always be people who make mistakes to bankroll my... opportunities.

geo123 said: demingy said: They must be trying to make up for the offers they (Chase) keep sending me for no fee 0% for 15 mo. You get 15mo. 0% no fee offers from Chase on an existing account? Chase typically only offers them for new account holders.

Sorry, I did mean to specify new accounts - that they are making up for the new offers by cutting back on existing customers.

I've noticed I've been paying more BT fees as well, and have even taken some offers at 1-2% interest. Has anyone deducted these fees/interest as investment expenses? I know you can do it, but it may be a red flag. I'm not sure what you need to do to prove that these are legitimate investment expenses, especially if you are intermingling your own cash with BT cash.

bleh - stupid FW server (triple post)

tarcapone said: I've noticed I've been paying more BT fees as well, and have even taken some offers at 1-2% interest. Has anyone deducted these fees/interest as investment expenses? I know you can do it, but it may be a red flag. I'm not sure what you need to do to prove that these are legitimate investment expenses, especially if you are intermingling your own cash with BT cash.

I'm interested in this too. I read on one tax advice site that if you:

BT to a checking account $X. Immediately transfer $X into your MMA/Savings/Investment of Choice with no other transactions in between. Pay the monthly payments out of the investment vehicle, eventually pay off the BT. Then you'll be fine.

But the website said if you something as innocous as:


BT to a checking account $X. Pay a bill from your checking account for $Y. THEN transfer $X into your MMA/Savings/Investment of Choice. The IRS will come get you...

Or something as simple as

BT to a checking account $X. Immediately transfer $X+Z into your MMA/Savings/Investment of Choice. Where Z is some other money you just happened to want to invest. Even though you covered $X, the IRS will say you actually left your BT money in your account and X+Z is a different "pot" of money.

This was not irs.gov but it was a fairly major investment website, cannot remember which now, so take with a grain of salt.

Related question: Can I dedcut the interst from investment income AND take the standard deduction? Otherwise it would be useless for me.

CORRECTION to new 5.25% Countrywide!

I just did a no-fee 0% with Discover on $8k; loaded up on (Non-Dealpass) grocery giftcards; and will pocket $394.41 in interest at the end of the (remaining 11-mo.) period with my 5.25% Countrywide SavingsLink™ account!

Tytie

tooshy said: how does loading up on giftcards (non-dealpass) save u money? You are not earning interest on money tied up in giftcards??? huh?

I'm earning it on their money. A carried-balance is not my money; it's theirs.

Tytie

nm didn't read correctly....should really stop reading/tweaking finance

mhesidence said: I think your english teacher may want a few words with you.

Egads I hope not, since my degrees are in English.

Tytie
*note the excellent placement of that comma

asharerin said: Not coming to an end. I am receiving more 0% no BT fee 12-18 month offers than ever before. Easy money baby!But aren't these new account promos? I had a few 0% offers on existing accounts during tax season but now they've all disappeared.

jdopple said: brentpresley said: geo123 said: I have an approximately $50K CL with Chase and I've been getting these 0% $75 BT transfer offers every month for at least a year and a half (I have about $45K outstanding with them right now).

Well, I have 78K CL w/ them and have been getting them every month as well.

This is a change from the status quo (for some at least).

What kind of income are you claiming to have these high credit lines?

I'm claiming my ACTUAL income.

Keep in mind, the cards are over 10 years old.

I'm new to the whole BT game, and was thinking about buying some stuff for my car & having it on 0% BT's. From the previous posts though, it seems like its also possible to do a BT straight into your personal checking account, and then funnel that money into a savings account for interest. Are there any rules/limits on those BT checks that they send you? If you make one out to yourself instead of another bank, does it count as a cash advance and you get hit with the high APRs?

jefflam79 said: AnonymousCoward said: geo123 said: brentpresley said: Well, I have 78K CL w/ them and have been getting them every month as well.

This is a change from the status quo (for some at least).My suspicion is that if the banks were tightening up their BT standards for everybody, we'd have a lot more posts like yours. The way it stands now, it just appears that you have for whatever reason temporarily fallen out of the target zone for such offers. It is certainly conceivable that this is a sign of things to come but at this time we really don't have any evidence that that is really the case.

I agree with geo123. For my first two years with Citi Dividend I spent at least 18 months on 0% APR no BT fees. Then they started sending me 5.99%/3% BT offers and I thought it was all over. But I just turned them down and eventually the 0% offers came back.

Although one trend that I know most people on here don't like but I love are the 1.99% for life offers. Yes, I'm giving up 2% but at the same time I don't have to desparately search around for offers every 12 months. I can AoR at my leisure and I can also, relatively safely, invest in more long term investment products.

Who offers these 1.99% for life offers these days. Lowest I've seen has been 3.99%. I sure could use a 1.99%.

My Citi Platinum Select gave me 1.99 for life with $75 BT fee. I've had the account for 14 years.