Making money from a credit card :D Update #1

[CodeBlue]

I just got a new citibank credit card, $25,000 limit and 1.9% interest for 15 months on balance transfers.

I got them to transfer the max amount, $22,300 to my ANZ creditcard hardly has any debt on it.

My ANZ credit card will go in >$20,000 into the positive, which i can transfer across into my progress saver account which i think get 6% interest.

So i'll be getting 4.1% interest on >$20,000 (which is not mine) for 15 months. Which is >$1000 profit for not doing anything.

Plus i'll have a low interest $20k if i want to buy a car or some shit.

???profit

This makes sense right? It seems too good to actually work but i can't see why not...




EDIT: adding in this for new comers to thread.




Here i dunno why i bothered, but i did the maths for you people who dont get it.

20k @ 4.1% interest for 15 months taking into account minimum repayments = $871
minus $150 account fee =$721
If tax is applicable @ 28% money made is approx = $519

COMPARED TO:

ANZ Fixed Rate Personal Loan Fixed 13.95% entry fee=$150 yearly fee=$120 (have to pay this at 12 month mark)

Interest on personal loan taking into account minimum payments over 15 months =$2964. plus fees = $3234.

Total cost of usual loan = $3234.
Cost of doing a BT my way = -$519 ($519 profit)

Net saving on doing a BT my way =$3753

I'll remind you i spent about 2 hours total on the phone setting this up.

Seems worth it to me.

[jusm]

um no. You will incur the cash advance rate which is presently 21.74% with no interest free days.. You won't get the balance transfer rate because its not a balance transfer, it a cash advance.

if only it was that easy..

[CodeBlue]

nope, it's a balance transfer. I just got off the phone with citibank organizing the balance transfer, all you have to do is nominate a creditcard account for the transfer to go to. And they basically send a check directly to your other bank.

[Scotty]

Won't you still have to pay interest on the money you transfer from your ANZ credit card @ like almost 20%?

[CodeBlue]

nope, you only pay interest on money you owe them, otherwise a creditcard account acts just like a savings account if you deposit money into it. ( I rang ANZ to confirm this)

[jusm]

I can assure you its a cash advance when you transfer cash from the citibank credit card to another account.. the balance transfer rate refers to transferring the balance of an existing credit card to your new citibank credit card which isn't what you are doing..

[CodeBlue]

jusm, you have no idea what you are talking about

[Scotty]

Well in that case it seems as though it would be sweet but surely the banks don't make it that easy to screw them....SURELY!

[Merudo]

actually, you have no idea what you're talking about dude. it's 1.9% on balance transfers from other cards TO their card. If you take money out from the citibank card, it IS a cash advance dude.

Just earn money instead of trying to find get rich slow schemes where you get $1000/year interest


You asked, he gave you the answer... You can't say he doesnt know what he's talking about just cause his answer doesn't agree with what you wanted to hear.

[CodeBlue]

Lol his answer doesn't make sense.
You cant transfer a negative amount of money(debt). So when you do a balance transfer, the bank you are going to, gives money to your existing bank to pay off the debt, so then you owe them (the new bank). get it?