Is it possible to max out a credit card and then transfer balance to pay 0% interest for 40 months?
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:
Why do credit card companies keep advertising balance transfers to those who don't carry a balance? money.stackexchange.com/a/25174/9663 Also the tag: money.stackexchange.com/questions/tagged/balance-transfer
Now the question - is it possible to:
fully utilise existing credit card (buy stuff aka speculative investment)
transfer balance at 3% fee
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?
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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.
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