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Author: SpaceEngineer Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308454  
Subject: Re: CC Convenience Checks - BEWARE Date: 12/14/1999 4:09 PM
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You do this by writing one for the full amount of your CC limit to
yourself and putting it in the bank. It will take 3 or more business days for this to get back to the CC company before they can take it out of your account. If
you have a bank that credits your account immediately (My checking account with USBank does not, but my CU checking account does), you can go
home, prepay your CC the full amount of the check you just wrote yourself with online bill pay (if your CC allows this). If you have a $3000 limit on your
card, it would effectively show up as a $3000 positive balance on your card so that when your convience check hits, your balance is back to zero. Now, the
only reason to do this is if you get 1 or 2% back on purchases and cash advances or airline miles for each dollar you spend, or whatever. You just made $60.
The only thing I am not sure about it is, normally you would get a 2% penalty (or whatever your card charges) for cash advance. But, because this isn't
technically an advance because your just taking your money back out of the card, do you still get charged the 2%?


I don't see your reasoning that this is not an advance. If you used the checks to effectively get cash off your card, you got an advance.

There is usually a 2-3% charge for any kind of balance transfer or cash advance, but often this is waived with convenience checks as part of a special promotion.

However, the main reason that this idea will not work is that the credit card companies normally do not apply rebates to cash advances. You're not the first to suggest this, and they are not dumb enough to let that happen. (One exception I've seen is the GM Card, which gives you 2 or 3 checks when you open the account to which the rebate is applied. I put my car downpayment on Discover, and paid Discover with the GM card check and immediately paid off the GM Card. Got the 1% from Discover and 5% from GM.)

John
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