0

Last night I've asked a question - What is the catch with "balance transfer" credit cards? - but I wasn't precise enough...

Quite rightfully it was marked as duplicate and provided reference to two more great answers:

Now the question - is it possible to:

  1. fully utilise existing credit card (buy stuff aka speculative investment)
  2. transfer balance at 3% fee
  3. then not pay any interest for 40 months

Of course I should be super-vigilant to fully pay off the card before the full interest kicks in. I should also keep minimal monthly repayments... Is there anything I need to know to make it real?

2

Sure is it possible.

What does it give you? You basically get a '3% in 40 months' credit for 10 or 20 or 30 k$ (whatever your max is), that makes about 0.8%-0.9% per year. That's a relatively cheap credit, but that's all you get.
Your credit score will go down, because you'll have a pretty high ratio, and your other credit cards might go up in interest (which only matters if you carry a balance). If you want to buy a car or a house within these 40 months, you are paying an arm and a leg more on the loan/mortgage.

That doesn't seem like a good deal for me. Aside from the fact that if you don't pay back in time, it immediately becomes a nightmare credit card debt.

But if you think that is a good deal, go ahead and do it.

  • I get relatively cheap credit. "other credit cards might go up in interest (which only matters if you carry a balance)" - I don't get that... Say I spend £2k on AmEx and then transfer £2k to a new card. I'll continue using AmEx as usual and I'll defer repayments for 40 months... I don't think any interest changes will affect me - am I getting it right? ••• I have a car and I'm not sure if I want to buy a house - London real-estate prices are from outer space (so totally inflated by investors from Russia / Asia / Middle-East)... – Mars Robertson Oct 5 '16 at 21:14

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.