RBC Visa promotional cheques - decreasing interest rates - pattern ?

[tmms]

Hi folks,

I'm looking for your knowledge / experiences in regards of possible pattern
in interest rates offered with RBC Visa promotional cheques.

I applied for RBC Visa a few years ago, when they offered me a balance transfer with an interest rate of 1.9% for the first 6 months. As I had no other debts, I took the money, kept them in PCF thru these 6 months, and paid them in full when it was due.

Obviously, I didn't use the card for anything else during this promotional period After that I put the card "to sleep", as well.

Then, they sent me "promotional" cheques with 9.99% interest rate.
Obviously, I ignored them.

Then, they sent me cheques with 6.99% interest rate. You could guess my reaction :-) I ignored as well the subsequent offers with 4.99% and 3.99%.

Now, I've got the offer for 2.99% interest rate until Mar 31st.
Well, I'm tempted to take it. After all, $50 of free money isn't bad :-)

But, I wonder: if I ignore this offer like the previous ones, maybe their next offer will be for 1.99% ? Or even something better if I would wait longer ?

$50 now isn't bad, that's true, but, obviously, $100 a few months later would be even better :-)

So, my questions are: does anybody, being in a similiar situation, waited longer and got a better offer ?
And: does it sound reasonably to expect 0.99% or 0.00% from RBC ? Especially in the situation that I took their initial offer of 1.9%
(so they could assume that it was my "breaking point") ?

Any thoughts / experiences very appreciated !

[YYZFA]

Hi folks,

I'm looking for your knowledge / experiences in regards of possible pattern
in interest rates offered with RBC Visa promotional cheques.

I applied for RBC Visa a few years ago, when they offered me a balance transfer with an interest rate of 1.9% for the first 6 months. As I had no other debts, I took the money, kept them in PCF thru these 6 months, and paid them in full when it was due.

Obviously, I didn't use the card for anything else during this promotional period After that I put the card "to sleep", as well.

Then, they sent me "promotional" cheques with 9.99% interest rate.
Obviously, I ignored them.

Then, they sent me cheques with 6.99% interest rate. You could guess my reaction :-) I ignored as well the subsequent offers with 4.99% and 3.99%.

Now, I've got the offer for 2.99% interest rate until Mar 31st.
Well, I'm tempted to take it. After all, $50 of free money isn't bad :-)

But, I wonder: if I ignore this offer like the previous ones, maybe their next offer will be for 1.99% ? Or even something better if I would wait longer ?

$50 now isn't bad, that's true, but, obviously, $100 a few months later would be even better :-)

So, my questions are: does anybody, being in a similiar situation, waited longer and got a better offer ?
And: does it sound reasonably to expect 0.99% or 0.00% from RBC ? Especially in the situation that I took their initial offer of 1.9%
(so they could assume that it was my "breaking point") ?

Any thoughts / experiences very appreciated !

I don't think you'll get less than 2.9% as a current customer. Credit cards offer 1.9% or 0% to get you to sign up as a customer, bit I don't think one would ever offer this to current customers (especially RBC).

On a related note, I just received an offer in the mail for 2.9% cash advances and balance transfers for 12 months if I am approved for a new RBC Platinum Visa. I don't think I'll bite though. There are no promotional codes, etc. You have to mail in the application you received in the mail.

[Jacklad]

I don't think you'll get less than 2.9% as a current customer. Credit cards offer 1.9% or 0% to get you to sign up as a customer, bit I don't think one would ever offer this to current customers (especially RBC).

Just got a 1.9% offer on my RBC Visa, so actually they do offer it to current customers. The same month (October) my husband got a 3.9% offer on his, which is currently holding a 1.9% balance transfer from September.

So they do offer it, but it isn't a steady level - once you get the 1.9% offer, you bounce back up (and then back down, etc.). CIBC Visa, on the other hand, never gets below 3.9% - but they send that offer every single month.

Just different business models.

Jackie

[alvisblue]

It is different from TD.
TD sent my 3.9% APR cheque for 6 months half year ago, and now sending me 4.9% APR cheque.
I didn't take them.

[TKOWKD1]

OP you mention $50, is that before or after tax?

When it comes to re-investing the advances into Hi Interest accounts the spread is crucial since interest is taxed at the highest marginal tax rate, I evaluate all deals on the after tax basis.

For the purpose of CC Arbitrage:
1.9% at RBC isn't bad, sadly though it's only 6 months.
3.9 at TD and CIBC is useless.

Some models don't get out of bed for less that $50K,
I don't allow my credit check pulled for less that $50 after tax.

[AllWheelDrift]

Checking my recent offers for my RBC Visa card in online banking I see: 1.9% in July, 1.9% in September, 2.99% in November.

Not sure there's much of a pattern other than they seem to send an offer at the start of every other month. Also, I don't think I've ever seen anything lower than 1.9% from RBC.

MBNA gave me 0% on PURCHASES for 6 months once. I also took advantage of the Citi 0% offer last year.

[tmms]

Hi, it's OP again.

OP you mention $50, is that before or after tax?

After tax.

I don't allow my credit check pulled for less that $50 after tax.

Now you got me a little confused. Do you think that they will pull an extra credit check when I use their cheque ? I'd rather think, that they checked my credit =before= issuing and sending the cheques

[Drew_W]

Hi, it's OP again.



After tax.



Now you got me a little confused. Do you think that they will pull an extra credit check when I use their cheque ? I'd rather think, that they checked my credit =before= issuing and sending the cheques

You're not asking for additional credit, so no extra checks. You're just using the credit already available to you.

[cadave]

I've got a question for those who have done a BT before...

I never keep a balance on credit cards, so I'm not sure how this works.

If I transfer $5000 to this visa to pay off another credit card's bill, how do my minimum monthly payments work?

Is it still calculated by taking $10 + interest owing?

RBC Royal Bank Visa website says:

Minimum Payments

Each month you must pay at least the Minimum Payment due. Your monthly Visa Statement will indicate the Minimum Payment amount in the box entitled Minimum Payment. It will normally be $10 plus Interest and Fees, as shown on the Calculating Your Balance section of your Visa Statement. If your New Balance is less than $10 or less than the calculated Minimum Payment, you must pay the New Balance. Any past due amounts will also be included in your Minimum Payment.

BTW, thanks OP for bringing this promo rate to my attention. It'll let me keep my money for a bit longer after booking my vacation for reading week on another credit card.

[Bullseye]

I've got a question for those who have done a BT before...

I never keep a balance on credit cards, so I'm not sure how this works.

If I transfer $5000 to this visa to pay off another credit card's bill, how do my minimum monthly payments work?

Is it still calculated by taking $10 + interest owing?

RBC Royal Bank Visa website says:


BTW, thanks OP for bringing this promo rate to my attention. It'll let me keep my money for a bit longer after booking my vacation for reading week on another credit card.

Min payment will depend on credit card company. The standard used to be 3% of the balance per month, but some companies are lower, Citi is 2.5%, for example. My MBNA card (0% for a year) only requires a $10/month payment on $15k owing.

For arbitrage, you obviously want the lowest min payments possible.

[cadave]

Min payment will depend on credit card company. The standard used to be 3% of the balance per month, but some companies are lower, Citi is 2.5%, for example. My MBNA card (0% for a year) only requires a $10/month payment on $15k owing.

For arbitrage, you obviously want the lowest min payments possible.

Thanks Bullseye. Wondering if anyone knows for RBC Visa specifically though. I wanna know because it's not worth it if they charge a 3% minimum payment. Too much work for too little reward.

[tmms]

In my case, RBC charged me $10 + interest (1/12*1.9% of the borrowed amount) every month.

More precise:
$10 flat + (current daily balance) * 1.9% / 365 * (number of days in a given statement period),
rounded down to nearest dollar.

[cadave]

In my case, RBC charged me $10 + interest (1/12*1.9% of the borrowed amount) every month.

More precise:
$10 flat + (current daily balance) * 1.9% / 365 * (number of days in a given statement period),
rounded down to nearest dollar.

Thanks for the clarification.

[kevinsky18]

I have used an RBC visa check 1.9% and the rate expires Oct 31.

When do I have to pay out the full amount to avoid the higher interest rate, Oct 31st, Nov 1st of by the payment date of the next bill?

[aidan24]

Talk about reviving a dinosaur.

Has anyone tried just calling RBC and asking for a balance transfer? I wonder what rate they'd give.