No. of Recommendations: 0
I have two credit cards: a Visa and a Mastercard both from FUSA. Each month I run them up (sometimes easily to $1000+ because I travel so much on business), each month I pay them off (expense checks from my employer are quite prompt). Paying off the total amount when it's over a $1000 apparently triggers an automatic form letter begging you not to leave FUSA and it will give you a wonderfully low interest rate if only you will transfer your debt back to their card. The assumption being made that you have acquired another credit card and have transferred the debt. I ignore these letters and the "convenience checks" included with them. But yesterday I actually got a telephone call from a FUSA rep quite concerned about my large payments and wasn't there any debt, any debt at all that I wanted to transfer to my credit card? Department store, automobile loan anything. I felt almost wicked not having anything to transfer.

But after I hung up I got to thinking. I do have a debt. My home mortgage. And by coincidence my principal balance is very close to what my credit card limit is. The 4 month (or it might even been for as long as 6 months) low low rate to entice me back into credit card debt is substantially lower than my mortgage rate...and after the low rate expires the fixed rate is still a smidgen below my mortgage interest.

I can't think of anything to keep me from using those "convenience checks" to pay off my mortgage. But there's got to be something wrong here. I inherently don't trust FUSA. But I can't think of a reason not to do this. What am I missing?
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement