No. of Recommendations: 0
I think it is Foolish to just pay the thing off and put your financial attention towards investing.

I basically agree and indeed that is what I do. Just a few dollars is often not worth the effort.


I think it is a waste of time and brain power to have to apply for different cards, transfer the balances, remember when to retransfer them, etc. Plus, if you apply for a mortgage or other loan, all of the POSSIBLE balances on all those CCs can be (cumulatively) counted against you.

One can use a calendar or a Personal Information Management program to remind one that one has to start applying for the next card with a teaser rate.

One has to remember to close accounts one is no longer using or, as you indicated, the credit limit can be viewed negatively by mortgage companies and other credit card issuers.

If one is planning on applying for a mortgage, I would recommend getting a copy of one's credit report from all three credit reporting services at least 3 months in advance so one would have time to clean up errors, close unused accounts, and see what negative marks the lendor would be seeing. However, I would recommend getting the cedit reports a few months before applying for a mortgage, whether or not one is playing musical credit cards.

Then there is the hastle that one must keep up on the payments--probably postage costs, probably using up checks one paid good money to have printed, possibly also a per-check charge.

I mentioned taxes on the interest in my previous message.

By the time one considers all the expenses in the scheme, it seems that the profit is likely to be very small and I doubt it is worth the effort.

However, if someone has decided to use teaser rates to borrow a few thousand dollars and keeps those few thousand dollars in a money market fund or CDs and is able to come out a few dollars ahead after taxes/postage/check printing charges, I wouldn't condemn that person. At least that person is a few dollars further ahead than I am with my visits to this board. 8)
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