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2009 ZERO PERCENT INTEREST CARDS
If there ever was going to be a year for our strategy to suffer, and our profits to decline, this should be it. Credit has frozen up around the country, credit lines are being cut and new loans are being denied. In addition, because the Fed Funds rate is at or near 0%, most banks are paying out measly interest rates to customers. That should be the double whammy to our strategy. However, despite these odds, and during what are clearly the worst economic conditions in recent memory, our strategy is not only surviving but is actually on pace to be our best year yet. We have not only managed to secure well over $450,000 in 0% debt but have also discovered FDIC insured accounts that will pay us at an average APY of 4.7%. We just started our 2009 efforts halfway though January and truly did not think this would be a banner year for securing new cards with high limits. We were very conservative about what we applied for. In fact, we decided to request new cards from only Chase, Bank of America and Citibank with the hope that we could piggyback any new limits they extended on top of our existing limits. We have been delighted and amazed by the results: Chase Disney Rewards Visa(Me)| Credit Limit | $88,800 | | Credit Term | 12 months @ 0% | | Balance Transfer fee | $75 | | Minimum monthly payment | 2% | | Total Profit (Expected) | $3,635.00 |
*New credit card approved with credit limit of $19,800. Called customer service and asked to consolidate credit limit with old chase card which had credit limit of $69,500. Moved $69,000 over to this new card and canceled the old card. Wrote balance transfer check to myself in the amount of 88,000 and deposited into my personal savings account. Citi ADA World Mastercard(Me)| Credit Limit | $111,600 | | Credit Term | 12 months @ 0% | | Balance Transfer fee | $0 | | Minimum monthly payment | 2% | | Total Profit (Expected) | $4,679.75 |
*New credit card approved with credit limit of $50,000. Called customer service and asked to consolidate credit limit with old Citi card which had credit limit of $61,600. Moved all $61,600 over to this new card and canceled the old card. Received and deposited balance transfer check in the amount of $99,000 because the system would not allow a 6 figure check to be cut. Subsequently initiated a separate balance transfer check request for $12,000. Received and deposited. Total received and deposited $111,000. Bank Of America Platinum Plus Mastercard(Me)| Credit Limit | $60,000 | | Credit Term | 12 months @ 0% | | Balance Transfer fee | $0 | | Minimum monthly payment | 2% | | Total Profit (Expected) | $2508.50 |
*New credit card approved with credit limit of $60,000. Bank of America took the initiative to cancel my old card when they issued this new one. Called customer service who was able to direct deposit $59,500 directly into my savings account. Chase Disney Rewards Visa(Wife)| Credit Limit | $73,700 | | Credit Term | 12 months @ 0% | | Balance Transfer fee | $75 | | Minimum monthly payment | 2% | | Total Profit (Expected) | $3,002.75 |
*New credit card approved with credit limit of $19,800. Called customer service and asked to consolidate credit limit with old chase card which had credit limit of $53,900. Moved entire limit over to this new card and canceled the old card. Wrote balance transfer check to herself in the amount of 73,000 and deposited into our personal savings account. Bank of America Platinum Plus Mastercard (Wife)| Credit Limit | $52,300 | | Credit Term | 12 months @ 0% | | Balance Transfer fee | $0 | | Minimum monthly payment | 2% | | Total Profit (Expected) | $2,192.25 |
*New credit card approved with credit limit of $13,800. Called customer service and had them consolidate credit limit with old BOA card which had a credit limit of $38,500. Had them move over entire limit of $38,500 to the new card and cancel the old card. Then had them direct deposit $52,000 directly into our savings account. Citi Professional Mastercard (Wife)| Credit Limit | $21,500 | | Credit Term | 12 months @ 0% | | Balance Transfer fee | $0 | | Minimum monthly payment | 2% | | Total Profit (Expected) | $885.36 |
*New credit card approved with credit limit of $21,500. Tried to consolidate credit limits with an old citi card but customer service was not able to do because the Citi Professional is considered a "business" card and they do not allow account consolidation between business and personal. Boo! Received and deposited balance transfer check in the amount of $21,000. Citi ADA World Mastercard (Wife)| Credit Limit | $50,000 | | Credit Term | 12 months @ 0% | | Balance Transfer fee | $0 | | Minimum monthly payment | 2% | | Total Profit (Expected) | $2,086.93 |
*We did not originally apply for this Citi ADA card for my wife (opting for the Citi Professional instead). However, after being so over-the-top successful with this card for me, we decided to take a crack at it for my wife. As it was a few weeks after the first batch of applications we were fully prepared for a denial. Surprise, surprise she was approved and with a $50,000 credit limit. We tried to consolidate her existing Citi card limit with this new limit but were unsuccessful after multiple attempts. Why we were able to do it with the exact same card for my account and not hers is still a mystery. In any case, the new $50,000 limit was not too shabby so we decided to just be happy with what we got. Requested and deposited a balance transfer check in the amount of $49,500 and deposited into our account.
Our 2009 totals are as follows: | Total Combined Credit Limit | $457,900 | | Credit Term for all cards used | 12 months @ 0% | | Average APY on funds deposited | 4.7% | | Minimum monthly payment (calculating the entire amount at 2% even though the BOA minimum monthly is only 1%) | 2% | | Total Profit (Expected) | $18,990.54 |
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