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Credit card tip #5
Use credit cards for a cheap loan. But with caution



Credit card companies will often provide 0% APR intro offers for anywhere from 3 to 12 months on credit card convenience checks that you could deposit into your bank account. The usual fee for this transaction is 3% of the amount used. If you are in need of a loan, this is a cheap and convenient option. Some cards even offer 0% APR with no transaction fee (!), so essentially you are getting money for free! Sweet! Unfortunately, since credit crunch begun, these offers have become increasingly rare.

I used these checks a few times and it worked great for me. A word of caution: it's easy to fall into the trap of cheap money. You get a loan, spend the money and then end up not being able to repay what you owe. Bad things will start happening then. So use credit card loan only when you are confident that loan will be repaid.


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Updated: January, 13 2012


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