Apparently, the credit card companies don't see me as too much of a risk. Even though we've been hearing about numerous credit card companies suddenly reducing the credit lines of credit worthy customers just because of the places that they use the card.

The past few days, I've received three separate offers from two different credit card companies offering me low interest money because I am a "valued" customer. They want me to use their money for anything I need. Just in case I didn't have any ideas, they suggested that I could use the money to take a vacation, buy a computer, do home repairs or consolidate other high interest debt.

I thought about taking them up on the offer; not to do the things they suggested but to put the money in a savings account until the low rate expires and then payoff the balance in full. Basically, I'd take advantage of the offer to make a little extra money for myself. This game worked a lot better when the interest rate on savings accounts were over 5%.

The only catch is that the offer includes a balance transfer fee of 3%. If I took $10,000 of my $15,000 credit line, the fee would be $300. Putting $10,000 in my savings account that is currently paying 2.5%, I would have $250 after one year.
By taking advantage of the offer, I would actually be losing $50.

No thanks, I'll pass on the "generous" offers this time. Next time, send me an offer that doesn't include a balance transfer fee and I'll probably take the money off your hands.

Discover Open Road


  1. J. Money // May 13, 2009 at 3:35 PM  

    Yeah, remember the days of 0% and NO xfer fee/cash advance whatsoever? was awesome...

    I still haven't had the balls to try it out myself anytime in the past few years, but maybe one day i'll give it a shot when I can figure out a better way to work it.