When you do one of these 0% balance transfer deals, you want the biggest limit you can get for a couple of reasons.

1) More free money. More borrowed money = more interest earned = more free money.

2) Keep your credit score high. Say you already have a $9,000 balance. A $9,000 balance on a card with a $10,000 limit hurts your credit more than the same balance with a $20,000 limit.

3) Feed your ego. Knowing I could buy that Mini Cooper right now on my credit card gives me the warm fuzzies. 😉

For example, now that I have a new Citi Professional card with a $9,000 limit and a 0% balance transfer that I can take advantage of at any time within the next year, I am going to shift all the limits on my other Citi cards onto this one.
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Recently I gave into temptation and applied for two new credit cards with nice perks and no-fee balance transfers: the Citi Professional Card and the Discover Miles Card. I got approved for the Citi card right away and got a $9,000 credit limit. I’m going to make a purchase right away and get my $100 gift card. I’ll also call Citi and move my credit limits from my dormant Citibank cards to this one increase the limit to close to $20,000, making it nice and ripe for a future 0% APR balance transfer.

I haven’t heard from Discover yet, the online application said it might take up to four weeks for a decision? Sounds like a long time to me. I did request $15,000 in balance transfers, so maybe they’re pondering if I’m worthy 😉 I also moved recently (less than a year).

For those of you that have the Citi Dividend Platinum Card that gives you 5% cash back for supermarkets, drugstores, and gas stations – be sure to use them to their fullest.

1) Gift Cards – Don’t buy at the retail store, try to buy them at the supermarket and earn yourself 5% cash back! (They can’t tell the difference, a purchase is a purchase) Safeway is my favorite, they have a great selection which includes AMC Theatres, REI, Barnes & Noble, Bed Bath and Beyond, Blockbuster, Chili?s, SpaWish, Circuit City, Starbucks, CompUSA, Home Depot, Toy’s R Us, Old Navy, and more! [Full list]

2) Super Targets – Reportedly, people have had Super Targets treat all purchases as a grocery purchase! That means even if you buy a $500 LCD TV or other toys, they’ll give you 5% cash back! If you have a Super Target nearby, that is an awesome deal. I would try it out for a month first and see if it shows up as 5% back on your next statement.

(Typing quietly while the parents are still asleep, shh…) I’ve decided to take advantage of two recent credit card offers:

1) The Citi Professional Card for it’s 3% back on restaurants, $100 bonus, and save-able 0% balance transfer, and

2) The Discover Miles Card for it’s no-fee 0% balance transfer for 12 months.

I was going to apply for another Citi Card, but I decided that would be redundant since you can move credit limits around with Citi and simply put all your credit limit onto the one card you are using for 0%. I am going to apply for both at the same today, hopefully today. I’ll post more on why later, but it’s basically so the credit agencies won’t be able to see I applied for the other card, maximizing my credit limit and chance at acceptance for both cards. Now to figure out exactly how to cook a turkey.

I just stumbled upon this article at Bankrate.com titled ‘How credit scores work‘. It seems a little old, but it’s new to me. The credit score powerhouse Fair Isaac (think FICO), is interviewed in the article, so that gives it some credibility. Here’s the skinny on what makes up your credit score, from most important to least:

35% – How you pay your bills (on time or not) – I don’t really have to worry about this one.

30% – Amount of money you owe and the amount of available credit – It’s not just how much debt you’re carrying, it’s how much of your available debt you’re taking advantage of. Another reason why it may not be a good idea to cancel unused credit cards.
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With all these higher interest rate opportunities like T-Bills ans SavingsBonds, I’ve been itching to apply for another of my favorite 0% balance transfer offers after recently paying off one of my current ones, but I’ve decided to wait at least another couple weeks. My reason? I figured since I just went from over 50% utilization of one credit card to zero, my credit score will jump up once all the credit bureaus hear about it. (Also supported by the FICO Score Estimator.) But since they only seem to get information once a month, they may not know about my good deeds yet. And I want the fattest credit limit I can get so I can maximize my earn interest off of borrowed free money.

So for now, I’ll have to be patient, and maybe find some more tasty credit offers.

I haven’t been as active in the 0% APR balance transfers game recently (still have $20k in borrowed money), but sometimes the trickiest part after finding the best 0% offer is to figure out how to get your cash.

It seems like some issuers are not playing well with others recently. Flexo at Consumerism Commentary reports having his credit balance request sent from Discover denied by MBNA. I’ve heard similar problems with American Express, although I have gotten checks from them before. The good news is that if you transfer to Citibank, they now let you request a check for any credit balance online. So for sure they let you do it, and on top of that there’s no human to question your motives (not that you’re doing anything wrong). Definitely the best choice, if you have to go that route.

Of course ideally, they just let you write a check directly to yourself for the money, or take your bank info and electronically transfer it there. Banks that I have done this with before, and from what I hear continue to do so, include Citibank, MBNA, and Chase. Bank of America used to, but they just bought MBNA, so I’d double-check. Overall, Citibank seems to be the most flexible care issuer, either as the place you get the balance transfer or the place to send it to. Nice that they also back it up with great Rewards cards.

I’ve updated my How-To Play the 0% APR Game post to reflect these changes.

Added: Here is a screenshot of me requesting a credit balance refund on my Citi card:

MBNA is currently offering a free credit report and score from Equifax for cardholders at the following site. I read the whole long terms and conditions, and there is no ‘free trial’ or anything to worry about. You must input a valid MBNA credit card for verification only (My only MBNA card is my 2% Cash Back 529 card), and it will not be charged. You must use the link above and only the link above to get the free report. I went through another link and was asked to pay $19.95 for 3 months of credit protection. It should read “Privacy Assist Single Credit Report… $0.00 / Complimentary”, which includes:

» Credit Report – Unlimited 30-day access to your credit report with data compiled from Equifax.
» Credit Score – Snapshot evaluation of your current creditworthiness.
» Credit Analyzer – Credit tips and tools to help you improve your credit rating.
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While I’m still happy with the three main credit cards that I use for rewards, I just noticed that Citibank has come out with two new cards with good rewards:

Citi mtvU Platinum Visa Card – 5 ThankYou Points per $1 spent on restaurants, bookstores, record stores, movie theaters, and video rental stores

Citi Home Rebate Platinum MasterCard – 6% cash back for 6 months on utilities, cable tv, satellite tv, other pay tv and radio services, internet connection and telecom services.

ThankYou Points are Citibank’s new rewards system. To be very, very general, 1 point = 1 cent. For example, the reward that appeals to me the most is the $50 Target Gift Card for 5,000 ThankYou Points. It’s not as good as cash, but I shop at Target regularly so it’s basically the same for me. Here is a .pdf file of the whole catalog.

Each card has other features, but this basically means you’re getting 5+% back on all those things – with this and my existing Citi Dividend Select Card which gives 5% back on grocery stores, drugstores, and gas stations, I’d be getting 5% back on the majority of my purchases! Too bad the Home Rebate offer is only for 6 months.

The mtvU card is targeted towards students, even gives you up to 2,000 ThankYou points twice a year based on your GPA last semester! And you also get 25 points a month for paying your bill on time and not exceeding your credit limit.

[Update: I have some reports that Citi is asking for transcripts from some, but not all cardholders. It may be just for people who want the extra GPA points though.]

[Update #2: For 3% back on Restaurants, Auto Rentals, Gas, and Office Supply Merchants, check out the Citi Professional Card ($100 bonus currently too!]

If you have a Citibank or Chase credit card, you’ve probably gotten one of these checks in the mail like I just did:

It sounds too good to be true, someone just sent you a $20 check for trying out some insurance? Sure! You know these people are just hoping you forget and start paying these random fees for who knows how long. I’m very paranoid about these things, but I also love free money. I’ve definitely cleared more than $100 on these checks. So here’s my standard procedure when I get one of these things to minimize time and worry.

1. I only do this for cards that have no balance and are in my safebox. This way, I know if I get a bill there’s something up. You don’t have to search for a random charge hidden in your purchases.
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If you live anywhere but the East Coast, you already have had access to a free annual credit report from each of the three major credit bureaus, as mandated by the government. Access to states on the East Coast* was supposed to start on September 1st, but according to some impatient people 😉 it is available now, five days early. So if you want to beat the rush, go for it! The official website is here: AnnualCreditReport.com. Don’t confuse it with those other “free credit report” sites that make you sign up for a 30-day trial.

Note that you just get a your report, listing your credit history, lines, and balances. Access to your credit score will cost you, but unless you are shopping for a mortgage or insurance, you’ll probably be fine using the free FICO Score Estimator from myFICO.
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