Tempting balance transfer check offer

[masscredit]

I usually don't like to carry balances. Rather just have enough to keep utilization in the 1-2% range. But... I received a couple of balance transfer checks from Barclay. I can write them to myself, 0% until Feb 1st 2017 and only a 1% transaction fee. I would borrow $5K for over 14 months and it would only cost me $50.00. Tempting!  I could take that money and invest it at a conservative rate and come up ahead. Hum... 

I'd just give up some points by carrying a higher balance on the card for awhile. 

[Anonymous]

I can only speak from experience! I did a BT into my checking account! I transferred the majority of my CL on Arrival+ to the RMC and wrote myself a check for 5,000, total 5,200, the CL was 7,000, this was in August! I took the time to pay down heavily so I'm atleast at 30% utilization! My score tanked, I currently owe 1,500 and will now just make $300 payments monthly. I haven't recieved a CLD or AA! With all the stories of AA & CLD & Barclay, I'd recommend a backup plan just in case. Good luck on w/e you decide!

[Anonymous]

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@masscredit wrote:

I usually don't like to carry balances. Rather just have enough to keep utilization in the 1-2% range. But... I received a couple of balance transfer checks from Barclay. I can write them to myself, 0% until Feb 1st 2017 and only a 1% transaction fee. I would borrow $5K for over 14 months and it would only cost me $50.00. Tempting!  I could take that money and invest it at a conservative rate and come up ahead. Hum... 

I'd just give up some points by carrying a higher balance on the card for awhile. 

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That is called stoozing and is a very common although risky practice. My suggestion would be to deposit that 5k into a netspend premier as it has a 5%APY

[kdm31091]

Although I do think AA paranoia goes too far sometimes, it seems BTs and Barclays just don't mix well. They seem to get very jumpy when your utilization gets high (via BT or otherwise). I dunno. I wouldn't do it, just because of the risk of the account being CLD or closed later. Nothing in life is completely free. It sounds great to use their money, invest and make a profit but in reality, it's a risky thing to do and not without possible consequences which is why you don't see everyone doing it.

Not to mention that the return on 5k, even at a high rate, is not going to be all that much or a life changing amount. The decision is yours though.

[masscredit]

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@Anonymous wrote:

That is called stoozing and is a very common although risky practice. My suggestion would be to deposit that 5k into a netspend premier as it has a 5%APY

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I didn't know it had a name. Currently doing some more research into that. 

[Anonymous]

Barclay's is weird. They have a reputation for not liking balance transfers, but they send me these checks and eMail offers constantly for both accounts. I took them up on it last month, so we shall see what happens.

[Anonymous]

Was going to take them up on 1% fee BT offer on SM but it expired the beginning of November. I can't recall how long it was for, but short enough I decided against it. Now have two new offers 2% for a year and 3% for 18 months IIRC. Might take them up on one of those. 

[Anonymous]

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@masscredit wrote:

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@Anonymous wrote:

That is called stoozing and is a very common although risky practice. My suggestion would be to deposit that 5k into a netspend premier as it has a 5%APY

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I didn't know it had a name. Currently doing some more research into that. 

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I stumbled into that back in May right after I got serious with my credit. I think I learned about it from a few churning forums. It *CAN* be very risky...but as long as you arent't investing it into the stock market and it has a guaranteed rate of return...I don't see the harm in it. It would basically be a way to make $200 after the bt fee.

I have discussed it here before somewhere, you can have multiple net spend premier cards, basically because once you go over 5k the 5% is diminished. And there are instructions on how to handle your account to avoid fees as well.  I was tickled to see netspend have something like that to begin with ya know?

I say go for it unless you make over $100 an hour and your time setting stuff up would be better suited elsewhere.

It is not going to change your life by any means. Barclays may not like it I guess? How important is your relationship with barclays?

We are talking $17 a month here.  Maybe you could look into couponing or energy efficency instead....

[masscredit]

I value my relationship with Barclays but I don't think they'd really care what the money is used for.  One of the suggestions that they list is just writting myself a check.  I got the energy efficency covered. It's pretty much a way of life now. My highest electric bill during the Summer was just over $90.00 (that's with central air). Current bill is $32.00. That is down 2/3 from the same time last year.  Something that I do once in awhile is look for bank offers for opening a new account. Recent rewards from doing that were $50.00 from one bank (kept that account) and $200.00 from other (worst bank I've ever dealt with. closed the account after I got the money). That money went towards last month's vacation.  I also do the coupon thing once in away. Not as good as some others but I can do ok. Do very well at CVS!  

I don't expect something like this to be life changing. Would be nice to take $5K, invest it at 10% and come out with an extra $500.00 with very little work. Okay, maybe $350.00 after taxes.  That would go towards another vacation.  Plus it would run up the account balance and show that it's been paid down over time instead of doing a PIF before the statement closes. I wouldn't want to go much beyound $5K. Don't want my score to take to much of a hit and also wouldn't want to spook them.

Strange that they present these offers to people then start balance chasing some accounts when they are used. 

[pizza1]

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@masscredit wrote:

I value my relationship with Barclays but I don't think they'd really care what the money is used for.  One of the suggestions that they list is just writting myself a check.  I got the energy efficency covered. It's pretty much a way of life now. My highest electric bill during the Summer was just over $90.00 (that's with central air). Current bill is $32.00. That is down 2/3 from the same time last year.  Something that I do once in awhile is look for bank offers for opening a new account. Recent rewards from doing that were $50.00 from one bank (kept that account) and $200.00 from other (worst bank I've ever dealt with. closed the account after I got the money). That money went towards last month's vacation.  I also do the coupon thing once in away. Not as good as some others but I can do ok. Do very well at CVS!  

I don't expect something like this to be life changing. Would be nice to take $5K, invest it at 10% and come out with an extra $500.00 with very little work. Okay, maybe $350.00 after taxes.  That would go towards another vacation.  Plus it would run up the account balance and show that it's been paid down over time instead of doing a PIF before the statement closes. I wouldn't want to go much beyound $5K. Don't want my score to take to much of a hit and also wouldn't want to spook them.

Strange that they present these offers to people then start balance chasing some accounts when they are used. 

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Hey Mass...

I know theres been a lot of cray cray talk about Barclays lately and AA, and I do still stand firm on NOT doing a BT, or whatever is youre doing. Its a risk you take with any lender, I know you already know that, since youve thought it out some.  Im a firm believer that when you take advantage of BT's, and checks from Barclays, that somehow you get flagged in their system in the future. Ive been researching them, and taking notes literally for the last 2 yrs, and Ive decided they are my PIF lender. 

Theyre are known for not taking  AA immediately, its always a few months down the road. Barclays is a lender you want to PIF with monthly for best results, LOL..  Just my personal take. But if you decide, I wish you good luck, and hope it all works out.