(Mark, I put this post in this forum because I thought that more people who should read it would see it, but if you think it should go in the balance transfer & low rate forum, feel free to move it)
| Quick navigation: | Deposit accounts | Credit cards | Brokerages | Other bonuses | Referral exchange |
|
|
A caveat regarding BOA 0% offers
Started by ichaelm, Jun 12 2007 05:54 PM
3 replies to this topic
#1
ichaelm
-
- Admin
- 1,069 posts
1 billion bucks
- Location:Bethesda Md.
- Interests:bank and card bonuses, credit arbitrage
Posted 12 June 2007 - 05:54 PM
If you do a balance transfer promo with Bank Of America, planning on just putting the $$ in the bank to collect interest for a year, be aware that you are still charged interest on the transaction fee, and that extra dollar or two could put you over your credit limit, triggering an over-the-credit-limit fee.That almost happened to me, but the CSR was nice enough to waive the $1.31 interest charge.
(Mark, I put this post in this forum because I thought that more people who should read it would see it, but if you think it should go in the balance transfer & low rate forum, feel free to move it)
(Mark, I put this post in this forum because I thought that more people who should read it would see it, but if you think it should go in the balance transfer & low rate forum, feel free to move it)
#2
markber
-
- Admin
- 15,048 posts
1 billion bucks
Posted 12 June 2007 - 06:21 PM
QUOTE(ichaelm @ Jun 12 2007, 11:54 AM) 
(Mark, I put this post in this forum because I thought that more people who should read it would see it, but if you think it should go in the balance transfer & low rate forum, feel free to move it)
No problem, Mike and thanks for the warning. I plan to integrate IBD member-reported offers to 0% offer lists on sites like Zipporate.com in the future... and if/when it happens I will need to be more restrictive about posts here. However, considering no spare time I have for that project, pretty much anything can go here for quite long time.
#3
Jay Shaw
-
- Members
- 25 posts
Member
Posted 13 June 2007 - 01:10 PM
QUOTE(ichaelm @ Jun 12 2007, 01:54 PM)
If you do a balance transfer promo with Bank Of America, planning on just putting the $$ in the bank to collect interest for a year, be aware that you are still charged interest on the transaction fee, and that extra dollar or two could put you over your credit limit, triggering an over-the-credit-limit fee.That almost happened to me, but the CSR was nice enough to waive the $1.31 interest charge.
This must be a fairly new policy for them. I did a 0% cash advance promo in the amount of $27,425 with my Charles Schwab BOA card as recently as November or December. My credit limit was $27,500, and the transaction fee for the cash advance was $75. I was never charged interest on either the cash advance or the transaction fee during the entire time the balance was outstanding.
BOA seems to be tweaking its policies after its recent acquisition of MBNA. Before the acquisition, just about every time I tried to find a 0% MBNA balance transfer or cash advance offer, the 3% transaction fee wasn't subject to a ceiling (thus negating the possibility of an effective arbitrage). I was surprised and pleased when I was able to find the BOA offer with a $75 ceiling.
I wonder if there is a clause in the terms and conditions of the balance transfer offer indicating that the transaction fee is subject to the standard APR for BTs, cash advances, or purchases. The first time that I did a credit card arbitrage with a transaction fee (with Chase), I specifically asked the CSR whether the fee was subject to interest charges during the promotional period. It wasn't, and I have never been charged interest on a transaction fee, but it seems that it would be prudent to look out for this in the future.
--Jay
#4
ichaelm
-
- Admin
- 1,069 posts
1 billion bucks
- Location:Bethesda Md.
- Interests:bank and card bonuses, credit arbitrage
Posted 13 June 2007 - 03:44 PM
From the fine print regarding the transaction fee for the convenience checks which BOA mailed me:
"this fee will post to your account as a cash advance fee and receive the Standard cash advance rate."
It's there; I just didn't bother to read it.
Mike
If you do a balance transfer promo with Bank Of America, planning on just putting the $$ in the bank to collect interest for a year, be aware that you are still charged interest on the transaction fee, and that extra dollar or two could put you over your credit limit, triggering an over-the-credit-limit fee.That almost happened to me, but the CSR was nice enough to waive the $1.31 interest charge.
This must be a fairly new policy for them. I did a 0% cash advance promo in the amount of $27,425 with my Charles Schwab BOA card as recently as November or December. My credit limit was $27,500, and the transaction fee for the cash advance was $75. I was never charged interest on either the cash advance or the transaction fee during the entire time the balance was outstanding.
BOA seems to be tweaking its policies after its recent acquisition of MBNA. Before the acquisition, just about every time I tried to find a 0% MBNA balance transfer or cash advance offer, the 3% transaction fee wasn't subject to a ceiling (thus negating the possibility of an effective arbitrage). I was surprised and pleased when I was able to find the BOA offer with a $75 ceiling.
I wonder if there is a clause in the terms and conditions of the balance transfer offer indicating that the transaction fee is subject to the standard APR for BTs, cash advances, or purchases. The first time that I did a credit card arbitrage with a transaction fee (with Chase), I specifically asked the CSR whether the fee was subject to interest charges during the promotional period. It wasn't, and I have never been charged interest on a transaction fee, but it seems that it would be prudent to look out for this in the future.
--Jay
"this fee will post to your account as a cash advance fee and receive the Standard cash advance rate."
It's there; I just didn't bother to read it.
Mike
QUOTE(Jay Shaw @ Jun 13 2007, 01:10 PM)
QUOTE(ichaelm @ Jun 12 2007, 01:54 PM)
If you do a balance transfer promo with Bank Of America, planning on just putting the $$ in the bank to collect interest for a year, be aware that you are still charged interest on the transaction fee, and that extra dollar or two could put you over your credit limit, triggering an over-the-credit-limit fee.That almost happened to me, but the CSR was nice enough to waive the $1.31 interest charge.
This must be a fairly new policy for them. I did a 0% cash advance promo in the amount of $27,425 with my Charles Schwab BOA card as recently as November or December. My credit limit was $27,500, and the transaction fee for the cash advance was $75. I was never charged interest on either the cash advance or the transaction fee during the entire time the balance was outstanding.
BOA seems to be tweaking its policies after its recent acquisition of MBNA. Before the acquisition, just about every time I tried to find a 0% MBNA balance transfer or cash advance offer, the 3% transaction fee wasn't subject to a ceiling (thus negating the possibility of an effective arbitrage). I was surprised and pleased when I was able to find the BOA offer with a $75 ceiling.
I wonder if there is a clause in the terms and conditions of the balance transfer offer indicating that the transaction fee is subject to the standard APR for BTs, cash advances, or purchases. The first time that I did a credit card arbitrage with a transaction fee (with Chase), I specifically asked the CSR whether the fee was subject to interest charges during the promotional period. It wasn't, and I have never been charged interest on a transaction fee, but it seems that it would be prudent to look out for this in the future.
--Jay
