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Ever play "Credit Card Musical Chairs"?

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Mudcat

Mudcat

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I am dabbling in it.

To explain: I have a bunch of credit cards with large balances on them. I also have a bunch of funds offshore so the theory is that my offshore funds make more money than I am paying in interest on the credit cards. That has been a part of my tao for the last ~10 years.

Anyway every once in awhile the various credit card companies send me cheques with special deals. A typical one might be that I can write a cheque and only pay 2.9% interest on the debt for 6 months. So I pay off one of the other credit cards where I am paying 19.5% (or whatever). But then that credit card has also sent me cheques with a no-interest-for-3-months-but-1%-off-the-top deal. So I immediately use that to pay off a different high interest card.

And it becomes musical chairs with all the cards covering other cards. It's kind of cool. I figure I am saving over $500 a month in interest. And there are all kinds of conditions for what happens at the end of the promo period but I am aware of all that and, unless I do something stupid like not make my minumum monthly payments which I always do, it just amounts to things going back to what I have been paying all along.

Then what hopefully happens is that the one credit card that is left sitting fully paid off will send more cheques and the circle of life can continue.

Anyone else ever do this? Any experiences to relate?
 
yea i used to do this. as recently as 5 years ago you could get a year at 0% with no fees on those checks. i got almost 100k one year and stuck it in a savings account (ok some of it, the rest went to sportsbooks) which at the time actually paid almost 5%.


i miss free money
 
FairWarning
My friend did it every 10 years. file bankruptcy, rice and repeat. He figured if the CC companies were dumb enough to offer him credit. he stiffed them again as he just died last month.
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I have heard of guys doing that - or else guys get all kinds of credit and max it out and then move back to their Serbian homeland (or wherever).

I am talking about a slightly different concept. There is nothing scammish - I have an excellent credit rating. It is just a case of using these cheques in a way that could almost be described as incestuously among the credit card companies, to keep interest as low as possible.
 
durito
yea i used to do this. as recently as 5 years ago you could get a year at 0% with no fees on those checks. i got almost 100k one year and stuck it in a savings account (ok some of it, the rest went to sportsbooks) which at the time actually paid almost 5%.


i miss free money
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I haven't seen the CC checks in a year or so now. I guess the banking crisis ended those. Makes sense to use them as an interest-free loan like you did.
 
Mudcat
I am talking about a slightly different concept. There is nothing scammish - I have an excellent credit rating. It is just a case of using these cheques in a way that could almost be described as incestuously among the credit card companies, to keep interest as low as possible.
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I imagine they know about it seeing your activity history. Wouldn't that hurt your rating?
 
RogueJuror
I imagine they know about it seeing your activity history. Wouldn't that hurt your rating?
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I don't see why. They have terms and conditions written right on them and I don't violate them at all. The ones I am looking at right now, in trying to get me to use them, say (among other things), "Wipe out higher rate credit card balances." That's what I'm dong. I always make my minimum monthly payments - have for decades.
 
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