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Author Topic: 0 APR Convenience Check

r
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0 APR Convenience Check
OP: November 12, 2013, 12:00:00 AM
Based on that last thread, it looks like there are more of us doing this now.  I was curious who all is doing it and your experiences (hopefully including where you got the 0 APR advance from)
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0 APR Convenience Check
#1: November 12, 2013, 12:00:00 AM
You should title this thread "Signs that it's officially a bubble."
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B
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0 APR Convenience Check
#2: November 13, 2013, 12:00:00 AM
I have been doing 0% APR balance transfers since about 2007. It's very cheap money and the banks don't seem to mind that you pay off the balance (with a transfer from a different card) the moment the 0% APR period ends.

What banks do you guys use for these? I find that Citibank is the most generous with both balance transfers as well as credit lines.
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T
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0 APR Convenience Check
#3: November 13, 2013, 12:00:00 AM
Also, there has been some misinformation floating around on these forums, so I'll clear it up: money you borrow (for investment) is considered by the IRS as a cost of investment, similar to broker commissions and margin interest. Whether you borrow from LendingClub, a 0% APR balance transfer, or from your uncle, you can deduct the interest straight from your investment revenue.

Just make sure you keep detailed records of your transactions (cash trail from the borrowing source to your investment account), so you can prove to the IRS that you borrowed the money for investment purposes. Also, try to keep the accounts separate (i.e. don't do a 0% APR balance transfer on a credit card you actively use for everyday purchases).
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T
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0 APR Convenience Check
#6: November 13, 2013, 12:00:00 AM
It's worth noting that lots of credit cards offer 0% interest introductory periods for purchases with no fee at all. One could make all their normal purchases with such a card instead of using their cash (and invest the cash instead).
  • The payoff is actual 0% APR and no-fee access to money for investment.
  • Careful, you probably can't deduct the interest on your taxes if you let the introductory period lapse.
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g
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0 APR Convenience Check
#8: November 13, 2013, 12:00:00 AM
I've only done this to invest in Lending Club once and it was US Bank. It was a higher fee of 4%. We used a 0% APR check from my wife's Chase MasterCard for a business investment and that is a 2% fee. In the future, I may continue to write myself a check for investments, but it will be using the Chase MC for the lower fee. But then again, I'm still earning a good amount over US Banks 4% fee, so maybe I'll use them both. US Bank had a longer term of 15 months. Chase was 1 year.
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R
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0 APR Convenience Check
#9: November 13, 2013, 12:00:00 AM
I recently got offers from Chase, Discover, and Citi for 0% for 15 months and a 0% balance transfer fee.

I guess those offers are making a comeback.  I haven't seen them like that since pre-2008.
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T
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0 APR Convenience Check
#10: November 13, 2013, 12:00:00 AM
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J
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#12: November 14, 2013, 12:00:00 AM
The picture is not so clear, but it seems you are charged a certain% one-time transaction fee.
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T
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0 APR Convenience Check
#13: November 14, 2013, 12:00:00 AM
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T
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#14: November 14, 2013, 12:00:00 AM
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