That's a very good point. Ok, that frees another $8000 that I can balance transfer off of two other cards. Wonder what intentionally creating $33,000 of credit card debt, and investing it, will do to my creditors' opinion of me? Will they get worried and start reducing my limits? That would cause me to have a 69% utility ratio.nmclean wrote: ↑It can also make sense if the balance transfer is significantly smaller. Suppose the BT accounts for only 25% of the card's balance. 75% of the payment will go against purchases, leaving only 25% of your purchases to be charged interest while you're getting 5% back on 100% of them. But you'd have to make your payments quickly since there is no grace period. You could still be making a net 2-3% this way.
CIBC 0% balance transfer 6 month offer
- Last Updated:
- Nov 18th, 2017 10:22 pm
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- SCORE+1
- bruceh2015
- Deal Addict
- Apr 13, 2015
- 1108 posts
- 214 upvotes
- dcor
- Member
- Apr 11, 2007
- 222 posts
- 11 upvotes
- Richmond Hill
Here's the key piece of information. I use a CC to cushion the flow of money for day to day transactions. In my case I used it primarily for gas, which would be 2 -3 x per week. And then I can just pay off the balance monthly. What they "failed" to tell me (ie Misrepresentation) is that after you do a balance transfer, your CC purchases essentially become like cash advances that accrue interest (19.99%) once it it posted. Rep just kept saying that as long as you pay the minimum balance (in my case pay off all transactions) then I wouldn't be charged anything. Maybe scam is the wrong word, but this 0% interest vs regular interest manuevering built into these offers is deceiving. I think one of the poster said it best - use a credit card that you wont be using for regular purchases and leave it alone until the promo period (6 months) is up and just pay the balance.
- bruceh2015
- Deal Addict
- Apr 13, 2015
- 1108 posts
- 214 upvotes
19.99% is about 1.67%/month. Compared with your same monthly purchase earning 5%/MONTH - yes, month, this is cash back, remember. i.e. You spend $1000\month, and yes your paying 1.67% month ($16.70), but you're earning $50 in cash back. Net: $33.30. Admittedly these number are very rough. After making a payment,the ratio of new charges to balance transfer is increasing, slightly improving these numbers.dcor wrote: ↑Here's the key piece of information. I use a CC to cushion the flow of money for day to day transactions. In my case I used it primarily for gas, which would be 2 -3 x per week. And then I can just pay off the balance monthly. What they "failed" to tell me (ie Misrepresentation) is that after you do a balance transfer, your CC purchases essentially become like cash advances that accrue interest (19.99%) once it it posted. Rep just kept saying that as long as you pay the minimum balance (in my case pay off all transactions) then I wouldn't be charged anything. Maybe scam is the wrong word, but this 0% interest vs regular interest manuevering built into these offers is deceiving. I think one of the poster said it best - use a credit card that you wont be using for regular purchases and leave it alone until the promo period (6 months) is up and just pay the balance.
Cash back is very interesting in my case with a business that rotates the credit card limit twice per month. Their free loan becomes an investment for me earning better than 2%/month, with only 1% cash back. It also means I can carry a large balance free of charge. Wish that was compounding interest; I'd get rich fast.
- dcor
- Member
- Apr 11, 2007
- 222 posts
- 11 upvotes
- Richmond Hill
Can you tell me what card you are using that earns 5% per month on cash back? My CIBC CC doesn't have that, but i get gas points. My amex simplycard only gets 1% at best.bruceh2015 wrote: ↑19.99% is about 1.67%/month. Compared with your same monthly purchase earning 5%/MONTH - yes, month, this is cash back, remember. i.e. You spend $1000\month, and yes your paying 1.67% month ($16.70), but you're earning $50 in cash back. Net: $33.30. Admittedly these number are very rough. After making a payment,the ratio of new charges to balance transfer is increasing, slightly improving these numbers.
Cash back is very interesting in my case with a business that rotates the credit card limit twice per month. Their free loan becomes an investment for me earning better than 2%/month, with only 1% cash back. It also means I can carry a large balance free of charge. Wish that was compounding interest; I'd get rich fast.
- bruceh2015
- Deal Addict
- Apr 13, 2015
- 1108 posts
- 214 upvotes
"5% per month" is a dangerous choice of words ( my fault). I simply mean that in any given billing period you are earning 5% of your purchases in cash back. Both the AMEX Simply Cash and the MBNA Smart Cash are doing this, but they have strict spending limits.
- dcor
- Member
- Apr 11, 2007
- 222 posts
- 11 upvotes
- Richmond Hill
Maybe I'm slow to pick up or I didn't quite understand how or where to compute the 5% rate... If I spend $1000 in a month, I will get 1% cashback (ie $10), while my credit card will charge me 1.67% interest ($16.70)... Wait, now I get it, you are referring to a 6 month promo rate of 5% for Amex..afterwhich you are back to the regular 1.25% rate.bruceh2015 wrote: ↑"5% per month" is a dangerous choice of words ( my fault). I simply mean that in any given billing period you are earning 5% of your purchases in cash back. Both the AMEX Simply Cash and the MBNA Smart Cash are doing this, but they have strict spending limits.
- bruceh2015
- Deal Addict
- Apr 13, 2015
- 1108 posts
- 214 upvotes
Yes, somehow this thread evolved into the the Amex Simply Cash card. It offers 5% for 6 months. If you can clear your balance transfer in 6 months, you can arguably still benefit from a combination of monthly purchases and balance transfer. I'll let you do the math to find the optimal balance of purchases and balance transfer.dcor wrote: ↑Maybe I'm slow to pick up or I didn't quite understand how or where to compute the 5% rate... If I spend $1000 in a month, I will get 1% cashback (ie $10), while my credit card will charge me 1.67% interest ($16.70)... Wait, now I get it, you are referring to a 6 month promo rate of 5% for Amex..afterwhich you are back to the regular 1.25% rate.
- iamthebest
- Deal Addict
- May 15, 2013
- 2048 posts
- 636 upvotes
- Alberta
I asked about that because as I said I was planning to apply for the Amex Simply Cash doing a balance transfer. I'm a lot confused by all the maths have been done in different posts .... I don't understand why people compare 5% cash back with 1.67% interests ... the idea of the first 6 months is to take advantage as more as possible of the 5% (btw, is 5% in grocery and other stuff but not in all) ... so paying 1.67% at the same time doesn't make any sense.
It would be better to apply for this CIBC CC just for the balance transfer, after 6 months I pay off my debt and then I apply for the Amex Simply Cash to take full advantage of the 5% for the first 6 months ...... at least I guess...
It would be better to apply for this CIBC CC just for the balance transfer, after 6 months I pay off my debt and then I apply for the Amex Simply Cash to take full advantage of the 5% for the first 6 months ...... at least I guess...
- rj2wells
- Deal Addict
- Jan 24, 2015
- 1021 posts
- 310 upvotes
- Canadian in USA
GOTCHA!
Fooling people like this is how they make their money.
- bruceh2015
- Deal Addict
- Apr 13, 2015
- 1108 posts
- 214 upvotes
Yes, and no. When you get cash back as high as 5%, if you play your cards right, you can enjoy a free loan, and still enjoy 3% cash back on your purchases. However, you only benefit in a meaningful way if you can not only pay for your purchases, but also clear your debt in 6 months.iamthebest wrote: ↑I asked about that because as I said I was planning to apply for the Amex Simply Cash doing a balance transfer. I'm a lot confused by all the maths have been done in different posts .... I don't understand why people compare 5% cash back with 1.67% interests ... the idea of the first 6 months is to take advantage as more as possible of the 5% (btw, is 5% in grocery and other stuff but not in all) ... so paying 1.67% at the same time doesn't make any sense.
It would be better to apply for this CIBC CC just for the balance transfer, after 6 months I pay off my debt and then I apply for the Amex Simply Cash to take full advantage of the 5% for the first 6 months ...... at least I guess...
You run into the same issue with the CIBC card. You can't make purchases with it. Instead of earning 1% in cash back, you're paying 1% in balance transfer fee.
- greg123
- Deal Fanatic
- Oct 1, 2004
- 6651 posts
- 995 upvotes
- GTA
What kind of job need to put $6000/week on a credit card?
Anyone recently got a balance transfer offer?
Anyone recently got a balance transfer offer?
- nmclean
- Deal Addict
- Nov 25, 2014
- 1739 posts
- 960 upvotes
- Newton Brook, ON
Yes, if you had the offer from CIBC or someone else, with a credit limit high enough to transfer the full amount you need to borrow, it would probably make no sense to take Amex's balance transfer offer as opposed to using the full 5%. But if there are no other cards available to you, you could use both 6 month offers from Amex simultaneously. I was just pointing out that 20% interest doesn't necessarily defeat 5% cashback. Even when you have a balance transfer, some of your payment is still applied to purchases, so you're still decreasing the amount that 20% is charged on, but the 5% amount is never decreased.iamthebest wrote: ↑I asked about that because as I said I was planning to apply for the Amex Simply Cash doing a balance transfer. I'm a lot confused by all the maths have been done in different posts .... I don't understand why people compare 5% cash back with 1.67% interests ... the idea of the first 6 months is to take advantage as more as possible of the 5% (btw, is 5% in grocery and other stuff but not in all) ... so paying 1.67% at the same time doesn't make any sense.
It would be better to apply for this CIBC CC just for the balance transfer, after 6 months I pay off my debt and then I apply for the Amex Simply Cash to take full advantage of the 5% for the first 6 months ...... at least I guess...
- iamthebest
- Deal Addict
- May 15, 2013
- 2048 posts
- 636 upvotes
- Alberta
Well, the idea was to just get the CIBC card for the transfer. For purchases I can use any other CC, even Amazon gives me already the 1%.bruceh2015 wrote: ↑Yes, and no. When you get cash back as high as 5%, if you play your cards right, you can enjoy a free loan, and still enjoy 3% cash back on your purchases. However, you only benefit in a meaningful way if you can not only pay for your purchases, but also clear your debt in 6 months.
You run into the same issue with the CIBC card. You can't make purchases with it. Instead of earning 1% in cash back, you're paying 1% in balance transfer fee.
- iamthebest
- Deal Addict
- May 15, 2013
- 2048 posts
- 636 upvotes
- Alberta
nmclean wrote: ↑Yes, if you had the offer from CIBC or someone else, with a credit limit high enough to transfer the full amount you need to borrow, it would probably make no sense to take Amex's balance transfer offer as opposed to using the full 5%. But if there are no other cards available to you, you could use both 6 month offers from Amex simultaneously. I was just pointing out that 20% interest doesn't necessarily defeat 5% cashback. Even when you have a balance transfer, some of your payment is still applied to purchases, so you're still decreasing the amount that 20% is charged on, but the 5% amount is never decreased.
Yeah, if it would be my first CC I get it what you mean. But as I can use any other of my 3 CC's I have right now, I'd just use them and use CIBC only for the transfer. And then apply for the Amex Simply Cash.
- bruceh2015
- Deal Addict
- Apr 13, 2015
- 1108 posts
- 214 upvotes
Of course, I simply made the point earlier that you can't use both transfer and purchases and benefit. Somebody corrected me and pointed out that you can still benefit. However, it's obviously better to use two different cards : one for balance transfer, another for purchases.iamthebest wrote: ↑Well, the idea was to just get the CIBC card for the transfer. For purchases I can use any other CC, even Amazon gives me already the 1%.
- alanbrenton
- Deal Expert
- Apr 21, 2004
- 58648 posts
- 24637 upvotes
My mom and I received different offers by email last week with the title and I know these are legit emails because we happen to have received these last December.
Save on high interest balances, here's how!
When I logged into my account around that time, I saw the balance transfer message a few times and clicked on Tell Me Later. Suddenly, the offer doesn't come out anymore. Anyway to get these offers to come out again upon sign in? Of course, we can call CIBC to avail of the BT offer but doing it online is so much more convenient.
Save on high interest balances, here's how!
When I logged into my account around that time, I saw the balance transfer message a few times and clicked on Tell Me Later. Suddenly, the offer doesn't come out anymore. Anyway to get these offers to come out again upon sign in? Of course, we can call CIBC to avail of the BT offer but doing it online is so much more convenient.
- bruceh2015
- Deal Addict
- Apr 13, 2015
- 1108 posts
- 214 upvotes
alanbrenton wrote: ↑My mom and I received different offers by email last week with the title and I know these are legit emails because we happen to have received these last December.
Save on high interest balances, here's how!
When I logged into my account around that time, I saw the balance transfer message a few times and clicked on Tell Me Later. Suddenly, the offer doesn't come out anymore. Anyway to get these offers to come out again upon sign in? Of course, we can call CIBC to avail of the BT offer but doing it online is so much more convenient.
Yes, this has happened to me many times. Eventually they stop popping up on your online banking. Just pick up the phone and call them. They probably have several offers for you. Its best if you can remember the offer code number, and I find the one that arrives in the snail mail are the best offers.
By the way: DO NOT NOT NOT NOT attempt a balance transfer to you Scotia AMEX card. You can't. But, they will still try. The money will disappear, and not reappear on your credit card for about three weeks.
- alanbrenton
- Deal Expert
- Apr 21, 2004
- 58648 posts
- 24637 upvotes
Seems the offer is random. My wife has not had the offer on her two Select Visa's for more than two years now but today she got an offer in the mail for one of her Dividend Platinum Visa card (both upgraded from the Select Visa's).
- devilsalad
- Newbie
- May 7, 2003
- 45 posts
- 13 upvotes
Can anyone post the 6 digit code for 0% interest? Talked to the dude who said that is all they need to give you the rate.
- LongLiveRFD
- Deal Fanatic
- Jan 6, 2011
- 6190 posts
- 1546 upvotes
- GTA
Just signed onto web banking and saw 1% fee for 10 month ~ 1.2% annualized.
MBNA 1% Valid until November 01, 2017. Are there even better deal?
First time seeing this from CIBC, as a 15+yr customer.
MBNA 1% Valid until November 01, 2017. Are there even better deal?
First time seeing this from CIBC, as a 15+yr customer.
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