[Dr Caleb]

[QUOTE BY= e.p.1]<br /> Today, I received an offer to: "Say hello to your Citi Gold Mastercard - with 0% on balance transfers until August 2007!"[/QUOTE]<br /> <br /> And, without reading further - shred that offer. (more below)<br /> <br /> [QUOTE BY= e.p.1]<br /> After reading this charmer a half-dozen times, I'm damned if I can say. If you transfer a $5000 debt from another card to Citi, and carry it on zero interest for a year: in August 2007 do you owe Citi $5000.... or $5000 plus 18-1/2 % interest compounded everytime you draw a breath beginning today.<br /> Makes a difference, doesn't it?[/QUOTE]<br /> <br /> Rule #1, you cannot rob Peter to pay Paul for very long. What is in the fine print? You are charged a very large (several hundred $$ ) fee to transfer balances.<br /> <br /> [QUOTE BY= e.p.1]<br /> Important Information About an Introductory Annual Interest Rate Offer on BalanceTransfers<br /> <br /> <b>Balance transfers are considered as cash advances for interest calculation purposes under your Citibank MasterCard</b><br /> [/QUOTE]<br /> <br /> And *there* is why you don't do that. 'Cash Advances' are usually charged intrest from the moment you withdraw them, and are compounded sometimes hourly!!<br /> <br /> Why you should chipshred and compost any credit card offer, (and basically anything you would normally throw out) and anything that has your name on it.<br /> <br /> <a href='http://www.canada.com/topics/technology/story.html?id=49bd5735-8b67-42c8-abc5-cab4bdc41174&k=85027'>Linkie</a><br /> <br /> I saw a show, I believe it was on PBS, a few months ago on the Credit Card industry. Some of the best contract lawyers in the US couldn't understand their contracts. One thing that is clear though, is that the 0% credit card offer is a myth. There is no such thing, so don't even bother. <br /> <br /> There are also a couple other interesting side effects to getting one of these 0% cards. Most people will transfer balances to them, and cancel the old cards. This destroys their credit rating. The other is when they are late with one single payment on one single credit card. It triggers an alarm bell somewhere, and your low intrest card (8%) suddenly doubles to 19% or higher. But not just your one card you were late with - but ALL of them. Department store cards, everything. You are royally pooched.<br /> <br /> So, don't do it. Pay cash for everything. If you can't pay cash, you can't afford it. If you can pay cash, only put it on a credit card if you go home and pay the card off immediately.

[rearguard]

Spending with a CC without the ability to pay is no better than using loan sharks to pay off gambling debts. You are far better off getting a line of credit from your local bank than using a CC for short term debt, but you have to shop around for reasonable rates because some LOC's have rates as high as CC's. Also, don't be afraid to press hard for a better rate, last I checked the banks can still be haggled with, but that was a while ago.<br />

[canuck]

[QUOTE] Payments and other credits will be applied first to balance transfer amounts at an introductory annual interest rate, and then to other Account indebtedness in the manner set out in your Citibank MasterCard Cardmember Agreement.[/QUOTE]<br /> <br /> This part really stood out to me. Basically, the low-interest Balance Transfer gets paid-off first. This would really suck if you had a huge transfer and continued to make purchases subject to the normally-high interest rate.<br /> <br /> I'm with Dr C, "Buy it if you can afford it."<br /> <br />

[e.p.1]

Thanks for all the replies. Amazing, isn't it, how much stuff others know which comes as news to one?<br /> <br /> Please keep the news coming. A senior, I have lots to learn, and little time. Shortly, I'm going to cite my most recent card offer. I'd like to reply to Canuck's comment first.<br /> <br /> (This example) "really stood out to me. Basically, the low-interest Balance Transfer gets paid-off first. This would really suck if you had a huge transfer and continued to make purchases subject to the normally-high interest rate."<br /> <br /> You bet, Canuck! This was the first example of outrageous flimflammery that Bank of Montreal Mastercard pulled almost five years ago. I wonder how many tens-of-thousands of commonfolk wound up spinning on that spike.<br /> <br /> "I'm with Dr C, 'Buy it if you can afford it.'"<br /> <br /> How about this: a creditcard is useful, provided you pay it off (entirely) every month.?<br /> <br /> e.p.1