Some offers go undiscovered; others are used how Capital One wants customers to use them, not how the customer should use them.
Either way, I’m here to explain my Capital One credit card gamin’ strategy.
The Capital One Bridge Loan
The three biggest advantages of credit cards are pretty clear-cut:
- Rewards (especially cash rewards)
- Payment protection for purchases (Great for sketchy ebay vendors)
- A short-term float on your cash (the credit card companies float the money for you up to 55 days)
Capital One cards have an additional benefit, actually, and it’s one of the reasons I think everyone should get a CapitalOne credit card: they offer free 30-day balance transfer bridge loans.
Check it out, every time I log into my account there’s an option to transfer balances to my Capital One card.
Usually there’s some random transfer offer like 5% for 12 months (plus a 3% balance transfer fee…pfft!) that they have mailed me in the past week, but there’s also a rockin’ zero-fee balance transfer at your normal purchasing APR.
Purchasing APR on Capital One Cards, I believe, goes no lower than 10.99% annually.
WTF! 10.99% ANNUALLY!
Yeah, great deal, right? Well, it is if you hold a balance for only as long as the billing cycle plus grace period.
So what do I do? I charge up all my expenses on the card on which I’m closest to receiving rewards then, one week before that payment is due, I BT it over to Capital One for another full billing cycle of interest free money!
Pretty cool? Awwww yeah!
One billing cycle at one credit card company plus one billing cycle and Capital One is an effective 78 day* loan, which I calculate to be worth…$2.99.*
Shoot, that’s like a gallon of gas.
Total loan-length: 30 day billing cycle + 30 day billing cycle + 25 day grace period – 7 days lost on an early transfer to CapitalOne)
Value of Loan: .70% annually in money markets / 365 days X 78 X $2,000 = $2.99 profit.
Like it? Hate it? WTF why didn’t I think of it? Comment below, or hey–blog back!
Link to this post, please, so I can post the trackbacks in the body of this post!