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9.23.2007

High credit lines and balance transfer opportunities

Since posting recently about our almost $200,000 in 0% balance transfers, I've received numerous comments and emails asking us a couple of questions....

1. How did we score such high credit limits?

2. How did we find 0% balance transfer offers?

3. And a combination of 1 and 2 - how do we get balance transfers that are "worth it", ie that the fees don't eat up all the potential profit?

As for number 1, we've been cultivating our credit limits for the past two-three years. When I started doing balance transfers, most of my credit lines were around $5,000-$10,000, with the exception of one MBNA card (my first credit card) that was close to $20,000. As I opened new accounts with balance transfer offers, I would call the company and ask them to move available credit from one account to the other. I would then close the older account (with the exception of my first credit card, my Iowa State University MBNA/BOA card, which I still have and use because it has BillPay and a very high credit limit).

Right now, I think most of our credit limits are about as high as they are going to go with the providers we use. We only do balance transfers with Chase (personal and business line), Discover (it takes a long time to build up credit limits, but they don't charge fees), and CitiCards (personal and business credit lines). This is just a decision we made because we use our BOA and American Express cards heavily for expenditures and it keeps things simple. It's also nice to have the BOA card that has a credit limit in the near $40k range that I can use to pay off one of the BT cards on short notice.

For the second question, I use primarily two sources to find 0% balance transfer offers. One is like a cheat sheet for the lazy, and I've used it many times... Five Cent Nickel's page of 0% balance transfer offers. The second place is the FatWallet Finance Forum.

For question 3, regarding the balance transfer fees, I use only cards that either have no fees or fees are capped at $75. This last round of $100,000 in BTs cost me $300 in fees, but $75 of that was due to my own stupidity (I didn't realize I had two cards I could consolidate into one until AFTER I had taken out the BTs). That $300 will be recouped in the first month. I ALWAYS look for offers that will allow me to recoup fees in the first month, otherwise it is not worth it.

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Comments on "High credit lines and balance transfer opportunities"

 

Anonymous 2million said ... (8:27 PM) : 

Thanks for the tip on increasing Amexp credit limit via website. Didn't know they had that available.

 

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