Interest free Credit Cards
One reader recently asked me how I received 0% credit cards. I currently have two credit cards for this purpose: a) Citibank Gold Mastercard and b) MBNA Mastercard. Both are limited time only 0% credit cards which means that you can basically write yourself a cash advance and deposit it in your bank account and earn interest on the money until it is time to pay back the principle.
Remember, though, that there are monthly minimum payments that one would need to pay.
However, because it is a 0% card, any minimum payment you make is made towards the principle. Between the two cards, I like the Citibank card a bit more because there is no balance transfer fee. With the MBNA they charge you 1% of the balance transfer amount. To me this was a minor inconvenience as I have put the money into PC Financial and am earning 4% so I still come out ahead at the end of the year.
The MBNA credit card promotion is currently over, but the Citibank Gold Mastercard offer is still available. The details are as follows: Go to http://www.applynow.citibank.ca
and enter the code "PGM" or "PGN" and complete the online application for 0% balance transfers until January 2008. They will generally only give you a card if you don't already have a Mastercard with Citibank. For my application, they required that I fax them proof of my address as well as proof of employment.
One minor warning for those that wish to take part in this offer: Make sure you don't use this credit card for purchases as any additional charges would be made at the ridiculously high credit card interest rates. Your best plan of action is to activate the card, request a 0% balance transfer and hide the card under your couch and never use it!
Remember, though, that there are monthly minimum payments that one would need to pay.
However, because it is a 0% card, any minimum payment you make is made towards the principle. Between the two cards, I like the Citibank card a bit more because there is no balance transfer fee. With the MBNA they charge you 1% of the balance transfer amount. To me this was a minor inconvenience as I have put the money into PC Financial and am earning 4% so I still come out ahead at the end of the year.
The MBNA credit card promotion is currently over, but the Citibank Gold Mastercard offer is still available. The details are as follows: Go to http://www.applynow.citibank.ca
and enter the code "PGM" or "PGN" and complete the online application for 0% balance transfers until January 2008. They will generally only give you a card if you don't already have a Mastercard with Citibank. For my application, they required that I fax them proof of my address as well as proof of employment.
One minor warning for those that wish to take part in this offer: Make sure you don't use this credit card for purchases as any additional charges would be made at the ridiculously high credit card interest rates. Your best plan of action is to activate the card, request a 0% balance transfer and hide the card under your couch and never use it!
Comments
However, neither of the codes are working for me - Any ideas?
the idea is to do a "Balance Transfer". When you sign up for these cards, they will give you a credit limit and balance transfer cheques. How you choose to cash those cheques is up to you. You can deposit it in your savings account or use it to pay off a line of credit or anything else.
Hope this helps.