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Frequent Contributor
greyhound2007
Posts: 358
Registered: ‎11-05-2007

CC/cash advance/0% interest

     So I call BoA because I cant get in to check my transactions.  And the guy says hey by the way I can give you up to your limit with a 0% interest rate for one year.  And he checks with his sup. to see if he can get me a $99.00 cap on the fee and comes back and says yep he can.  My intial thought is do it and put the $49000.00 dollars into my money market account and draw around 3% interest for 10 mths then pay it off.  Then my better judgement took over and I thought yep then what if my bank closes just before I am to pay it off.  What the heck would I do then.

 

     Anyone have thoughts on doing something like that.  He stated plainly that I could do anything I wanted with the money.  Thanks Vicki

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Super Contributor
marty56
Posts: 5,679
Registered: ‎10-06-2007

Re: CC/cash advance/0% interest

[ Edited ]

Your CD wound be insured if your bank uses FDIC or is a credit union.  Having said that I would not do it.

 

I hate BofA so my answer may same biased but IMHO I would be carefull about taken any cash advance or BT unless it was saving me money on interest or for great need.

Message Edited by marty56 on 10-12-2008 07:13 PM
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Established Contributor
Watchmann
Posts: 985
Registered: ‎05-14-2008

Re: CC/cash advance/0% interest

[ Edited ]
Don't borrow money to invest unless you really know ALL the parameters of the deal.  There are too many things that can go wrong, especially with the wacked out credit situation of today.  I think we should all keep a low profile, pay our accounts down, and keep borrowing to a minimum until the ship stabilizes.  You'd make $1,500 pre-tax in your scheme.  Not worth it imo.
Message Edited by Watchmann on 10-12-2008 09:57 PM
Senior Contributor
ilovepizza
Posts: 3,071
Registered: ‎05-17-2007

Re: CC/cash advance/0% interest

[ Edited ]

First. High risk to loose money for small reward. That being said that's a heck of a deal! Too bad it's so risky this month for that type of action. They could give you the money and you might pay it all back 1 month early to be on the safe side, make a profit in your bank account with interest and then BOA might chop your CL to $5k because you carried a balance for too many months. :smileysad:

 

The problem is now that the banks aren't lending money to each other so I hear and people that pay of debt slow are under attack from the lenders. You idea is sound but you might want to hold off for a few days/weeks until the stock market levels settles down. Banks are on sharp edges this month.

 

Keep in mind that your money market account could drop to 1%.

 

Thank you for reminding me that there is room to negotiate with lenders. I keep forgetting that we can do this.

Message Edited by ilovepizza on 10-12-2008 11:37 PM
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Frequent Contributor
greyhound2007
Posts: 358
Registered: ‎11-05-2007

Re: CC/cash advance/0% interest

[ Edited ]

    Agreed with everyone.  My luck would be my bank would fold and then it would take me 2 or 3 mths to get the money and I would be in trouble then.  Not making the payments but the interest I would have to pay (and they would probably rate jack me).  Plus hubby's checks are DD so there I would be.  But no I would not suggest someone doing that it was just a thought that fleetingly passed thru my mind.  Thanks vicki

 

 

   ETA: I liked all answers on this one, it is best to keep low profile.  Stay out of debt as much as possible.

Message Edited by greyhound2007 on 10-13-2008 01:05 PM
~We'll Never Say Goodbye~
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