P2P Lending / NFT Lending Forum

Lending Club Discussion => Investors - LC => Topic started by: rawraw on November 11, 2013, 11:00:00 PM

Title: 0 APR Convenience Check
Post by: rawraw on November 11, 2013, 11:00:00 PM
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)
Title: 0 APR Convenience Check
Post by: Peter on November 11, 2013, 11:00:00 PM
You should title this thread "Signs that it's officially a bubble."
Title: 0 APR Convenience Check
Post by: Bohb Daishi on November 12, 2013, 11:00:00 PM
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.
Title: 0 APR Convenience Check
Post by: TravelingPennies on November 12, 2013, 11:00:00 PM
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).
Title: 0 APR Convenience Check
Post by: TravelingPennies on November 12, 2013, 11:00:00 PM
from: Bohb Daishi on November 13, 2013, 02:06:49 AM
Title: 0 APR Convenience Check
Post by: TonySaunders on November 12, 2013, 11:00:00 PM
from: Bohb Daishi on November 13, 2013, 02:30:30 AM
Title: 0 APR Convenience Check
Post by: TravelingPennies on November 12, 2013, 11:00:00 PM
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).
Title: 0 APR Convenience Check
Post by: TravelingPennies on November 12, 2013, 11:00:00 PM
from: TonySaunders on November 13, 2013, 02:01:23 PM
Title: 0 APR Convenience Check
Post by: ggnoob1337 on November 12, 2013, 11:00:00 PM
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.
Title: 0 APR Convenience Check
Post by: Randawl on November 12, 2013, 11:00:00 PM
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.
Title: 0 APR Convenience Check
Post by: TravelingPennies on November 12, 2013, 11:00:00 PM
from: Randawl on November 13, 2013, 09:57:20 PM
Title: 0 APR Convenience Check
Post by: TravelingPennies on November 12, 2013, 11:00:00 PM
from: Bohb Daishi on November 13, 2013, 11:02:40 PM
Title: 0 APR Convenience Check
Post by: Joe6Luck on November 13, 2013, 11:00:00 PM
The picture is not so clear, but it seems you are charged a certain% one-time transaction fee.
Title: 0 APR Convenience Check
Post by: TravelingPennies on November 13, 2013, 11:00:00 PM
from: Randawl on November 13, 2013, 11:48:59 PM
Title: 0 APR Convenience Check
Post by: TravelingPennies on November 13, 2013, 11:00:00 PM
from: Randawl on November 13, 2013, 11:48:59 PM
Title: 0 APR Convenience Check
Post by: core on November 13, 2013, 11:00:00 PM
Good thing I'm not your trash man.  You seem like a good customer to have on the route!
Title: 0 APR Convenience Check
Post by: Xin on November 13, 2013, 11:00:00 PM
Quote"> from: Bohb Daishi on November 13, 2013, 11:02:40 PM
Title: 0 APR Convenience Check
Post by: Randawl on November 13, 2013, 11:00:00 PM
Quote"> from: Joe6Luck on November 14, 2013, 12:36:42 AM
Title: 0 APR Convenience Check
Post by: Cries on November 13, 2013, 11:00:00 PM
Quote"> from: Bohb Daishi on November 14, 2013, 02:49:00 AM
Title: 0 APR Convenience Check
Post by: yaoyao on November 13, 2013, 11:00:00 PM
I got 0% convenience check from chase, barclay, discover and BOA, but none of them is with no balance transfer fee.  The lowest I got is usually 2%.
Title: 0 APR Convenience Check
Post by: TravelingPennies on November 13, 2013, 11:00:00 PM
from: Cries on November 14, 2013, 03:03:15 PM
Title: 0 APR Convenience Check
Post by: rawraw on November 13, 2013, 11:00:00 PM
from: Randawl on November 14, 2013, 06:23:38 PM
Title: 0 APR Convenience Check
Post by: howler99 on November 16, 2013, 11:00:00 PM
Just wanted to add a word of caution here that may not apply to everyone, I did this with my REI card (US Bank), so I got a 0% APR 15 mos. advance for 4% fees. Sounds ok, but the only catch is I like to use my REI card for the 5% cash rebate, and apparently the cash advance counts toward your balance, so basically there is no grace period.

Now whenever I use my REI card, I get charged interest, and US Bank has a $2 minimum interest payment, so even if I charge something for $30 and send a payment the next day, I get charged $2, and my rebate (from REI next year) would be $1.50.

It's not a big deal, but it's annoying and adds up over time. I suspect most cards are like that, so my advice would be to only use this on a card you don't plan on using for anything else.
Title: 0 APR Convenience Check
Post by: J2E on November 23, 2013, 11:00:00 PM
For the people doing this, do you pay the cc minimums from withdrawing from your LC account or from your regular or other income?  I'm considering this for about 10k at 2% up front. I haven't computed the minimum payments but I would likely need to either withdraw every month to pay it back or not invest it in later months to make the last month balloon payment at the end of the term.
Title: 0 APR Convenience Check
Post by: ggnoob1337 on November 23, 2013, 11:00:00 PM
from: J2E on November 24, 2013, 12:06:54 PM
Title: 0 APR Convenience Check
Post by: TravelingPennies on November 24, 2013, 11:00:00 PM
from: howler99 on November 17, 2013, 10:47:59 AM
Title: 0 APR Convenience Check
Post by: TravelingPennies on November 24, 2013, 11:00:00 PM
from: logan1337 on November 24, 2013, 08:02:02 PM
Title: 0 APR Convenience Check
Post by: william on November 24, 2013, 11:00:00 PM
Quote"> from: TonySaunders on November 13, 2013, 02:01:23 PM