Ad in the paper this morning...0% APR until December 31, 2011 with the Citi Diamond Prefered Card on purchases at gas stations, supermarkets & drugstores. New Cardmembers only. Apply by 9/15/06 1-800-479-1183.
If you get this card, you could just use it for gas stations, supermarkets & drugstores...pay off the minimum each month...and put an amount equal to your purchases in a Money Market account...so it would be like getting a 5 year 0% balance transfer with no fees.
sloth911 said:WOW Yeah - that sounds great. 5% Cash Back is all well and good, but you'd earn 5% on that money in a savings account if you didn't pay it back for 1 year. 5 years would be great! Taxes and minimum payments would reduce this benefit some, but I'm pretty sure this would be a better deal than the 5% Cash Back cards.
Of course there's the chance that you might slip up and use the card at a merchant that doesn't qualify as a gas station/supermarket/drugst0re. You'll be paying 10%+ interest on that purchase for 5 yrs unless you pay off the card entirely and start all over, since any payments you make are applied to the 0% balance before they are applied toward paying down the higher APR balances.
And sometimes, you think you're at a qualifying gas station/supermarket/drugst0re but it turns out the credit card doesn't treat the purchase as such, and you wind up in the same predicament.
mapen said:Of course there's the chance that you might slip up and use the card at a merchant that doesn't qualify as a gas station/supermarket/drugst0re. You'll be paying 10%+ interest on that purchase for 5 yrs unless you pay off the card entirely and start all over, since any payments you make are applied to the 0% balance before they are applied toward paying down the higher APR balances.
And sometimes, you think you're at a qualifying gas station/supermarket/drugst0re but it turns out the credit card doesn't treat the purchase as such, and you wind up in the same predicament.
AlexTheMan said:mapen said:Of course there's the chance that you might slip up and use the card at a merchant that doesn't qualify as a gas station/supermarket/drugst0re. You'll be paying 10%+ interest on that purchase for 5 yrs unless you pay off the card entirely and start all over, since any payments you make are applied to the 0% balance before they are applied toward paying down the higher APR balances.
And sometimes, you think you're at a qualifying gas station/supermarket/drugst0re but it turns out the credit card doesn't treat the purchase as such, and you wind up in the same predicament.
Exactly, seems to be a very risky offer..
So you pay off everything with cash in your savings account and start over again... what's the problem? Still better than nothing.
CrazyRus said:But you're already hit with interest..Well, it's not so bad. The interest will not be on the entire balance - it will only be on the non qualifying purchase. So if you have, say, a $5000 balance at 0% and you slip up and make a $20 non-qualifying purchase, you will only have to pay the 13% or 18% interest on the $20. Then you can do what RushNRocket said - pay it all off and start again. Or do the math and decide whether the cost of the interest is offset by the benefit of having the 0% balance.
fat419 said:who cares what the APR is, don't carry a balance.
You are missing the entire point of 0% APR offers if you don't carry a balance!!!! The problem with the offer is that not quailifying purchases are charged the standard APR and ANY missed credit card payment can be used to up the 0% APR to your standard rate.
If you don't want the 0% APR - this is offer is worth almost NOTHING.
BTW I scanned the ad and posted a link to it above.
This was in the "Sunday coupon" section of the Oneida,NY Daily Dispatch which is distributed with the Saturday paper since they don't publish on Sunday.
No code was given so apparently none is needed.
Nothing about CashBack so apparently this is instead of the 5% CashBack.
No annual fee.
Also includes 0% balance transfer till 8/1/07 "no balance transfer fees with this offer"...regular balance transfer fee is 3% up to $75 max.
This offer, though interesting and unique, doesn't seem worth doing. I would rather have 5% CashBack. It would take a long time to spend enough in grocery stores to make deposits worthwhile. With this plan, what, every time I spend $100 at a grocery store, I need to remember to deposit $100 into an interest bearing account. I supposed you could make more than 5%, but hassle factor must be considered.
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