rated:
posted: Apr. 25, 2008 @ 12:36p
In my first A0R, I basically borrowed most of my CL, stuck it in HYSAs, and paid the minimum payments for a year and then paid off the balance -- pretty standard A0R stuff. I think I did have one case where I did an additional BT for some reason about 9 months into it in order to float more money longer. In general, though, I started out with a high balance and it steadily declined over the year period.
In my current A0R, I've noticed that several of the cards in my recent A0R have 0% on BT's *and* purchases. My highly unoriginal and uncreative thought was to do the initial BT's, make the minimum payments, and also use those cards as my daily spenders. This would enable me to continue to float the BT money longer without some of the BT hassles and delays.
I think the only exception to doing this is I would probably still use my PenFed for gas because it gets me a 5% tax free discount credited monthly, which seems like a better deal than floating a gas purchase at 0% for somewhat less than 12 months while I'm earning 4.35% at Alliant.
The only thing I need to make sure of before I do this is that the 0% purchase period lasts at least as long as the 0% BT period. I'd hate to be in the situation of having to pay off a 0% BT because the purchases stacked on that card had started to accrue interest.
2Cor521
