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using 0% interest credit card to put into cd

784 34 March 7, 2023 at 03:51 PM
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What you think about using 0% interest credit card and put money into 5% cd? usually balance transfer fee is 3%. Not sure if there anything lower.
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dealkk
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YanksIn2009
03-07-2023 at 05:30 PM.
03-07-2023 at 05:30 PM.
Quote from dealkk :
What you think about using 0% interest credit card and put money into 5% cd? usually balance transfer fee is 3%. Not sure if there anything lower.
First off, you can't charge\transfer a cash advance and even if you could, the 5% CD interest is taxable so after transfer fees and whatever else they can sock you with you are not going to make any money on it or at least not enough to make it worth your time and trouble.
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Joined Aug 2004
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dealkk
03-07-2023 at 05:31 PM.
03-07-2023 at 05:31 PM.
Quote from YanksIn2009 :
First off, you can't charge\transfer a cash advance and even if you could, the 5% CD interest is taxable so after transfer fees and whatever else they can sock you with you are not going to make any money on it or at least not enough to make it worth your time and trouble.

Make sense thank
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Dr. J
03-13-2023 at 12:20 PM.
03-13-2023 at 12:20 PM.
In theory yes if you could get real cash out and not pay some cash advance fee. Of course you'd have to be REALLY sure to pay off the CC before the promo rate ends.
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Flawless700
03-18-2023 at 03:19 PM.
03-18-2023 at 03:19 PM.
There are actually ways to do this without a 3‰ fee. I took 25k cash off my CCs and put them into bonds at 5.1 for 1 yr. Easy money.
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slicbrat
03-19-2023 at 06:31 AM.
03-19-2023 at 06:31 AM.
Quote from Flawless700 :
There are actually ways to do this without a 3‰ fee. I took 25k cash off my CCs and put them into bonds at 5.1 for 1 yr. Easy money.
How? Smilie
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NYI44
03-21-2023 at 09:47 AM.
03-21-2023 at 09:47 AM.
Quote from Flawless700 :
There are actually ways to do this without a 3‰ fee. I took 25k cash off my CCs and put them into bonds at 5.1 for 1 yr. Easy money.
Can you tell us the ways?
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W-Creative
03-22-2023 at 10:55 AM.
03-22-2023 at 10:55 AM.
theoretically, it is doable, however, your credit score will drop significantly when you are carrying debts on your credit cards in a short time period unless you choose 1-month or 3-month CDs only, also the banks may contact you to lower your credit line.
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cmatthes1
04-19-2023 at 08:05 AM.
04-19-2023 at 08:05 AM.
Everybody is 100% correct about the 3% fees making it almost a wash. However, I will say that if you can get longer than 12 months 0% it becomes a little less impactful.
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slapshot136
04-21-2023 at 05:35 AM.
04-21-2023 at 05:35 AM.
You can, although I doubt you can claim the fee as a tax deduction/business expense and you will have to pay taxes on the 5% gain so especially if you are at a higher income tax bracket it's probably not worth it, but run the numbers and maybe? - also as cmatthes1 mentioned, check the timeframe - this is for 12 months, more it might be worth it, less almost certainly not worth it
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msp3
04-29-2023 at 09:50 PM.
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