Ok probably not the best title, but when all the banks keep trying to entice me with their 0% APR BT offers, I started doing some reading and realized that 0% APR AND 0 BT fee cards do exist, specifically Chase Slate and BankAmericard (the MC version) + a bunch of CU cards.
Now, I've received more than enough BT checks from BoA to know that I can indeed write them out to my name and cash them, effectively allowing me to do a "BT" (really more of a cash advance) up to my credit limit. So let's suppose I applied for the BankAmericard, then shifted my CL around so it had say a 20K limit. I could then request a BT check to the tune of $15000, and then let it sit pretty in a high-yield savings account (or a 12 month CD) to garner interest (let's call it 1.5%) As long as I made the minimum monthly payments to stay current, and paid off the entire sum before the 0% promo period expired, that's effectively an easy $200+ in interest a year.
Obviously I could (and probably should/would) invest that money for a much higher ROI, but I'm just considering the simplest scenario here to make things easier. Does anyone see any issues with this plan? I know I'm going to take a severe ding to my FICO for having super high util (>75%), which opens me up to potential AA, and the obvious risk of loss of principal in investments. But other than that I can't think of any. So part of me thinks it's just too good to be true -- what bank would front you $15K and let you use that money completely interest free for a year as long as you repaid them in full after 12 months or however long the 0% promo period was? Feels like there's gotta be a catch somewhere.
Another thought: just realized this could be a perfect way to have your cake and eat it too when it comes to buying cars.
Cut yourself a BT check to make up whatever amount you need to buy a car in cash (so you get the cash rebate). Then take advantage of the 12/15/18 month 0% APR to effectively receive 0% APR financing AND buy the car at the cash rebate price.
I feel like I'm definitely missing something here... 🤔🤔
Oh believe me I'm chasing bank bonuses like crazy this year. My goal is to get to $1500 if at all possible (or at the very least, $1200).
The stuff about BT is all theoretical at this point. Ideally if I really were to do this it'd have to be 35K on a 50K limit card to make it worth my while, but that's somewhat wishful thinking at this point. What got me started was thinking about the practical advantages of a high CL and how I could make the most of it. Besides, only so many bank bonuses you can churn every year. 😂😂😂
What about the scenario involving car buying? If everything plays out like I described then seems like it truly is a way to get the cash rebate and enjoy "0% financing" at the same time. Invariably when a dealership offers "0% financing", it isn't really 0% since you're giving up the cash rebate, which typically amounts to 5-10% of a car's MSRP.
Sweet. I know exactly what to do next time I'm in the market for a car.
You are braver than me to try this, haha. I would most definitely NOT put the money in an unguaranteed investment. Actually, I wouldn't do this at all, in any way, for investment or buying a car.
Seems REALLY risky for a very small return.
The terms are very clear, they'll loan you cash at %0 for a short period of time, but if you don't give it back to them after the 0% period wears off, you pay extreme interest.
Lots of things can go wrong during that 0% period that cause you to not be able to pay it back. That is the whole reason BT cards exist, financial plans gone awry.
