Archive for August, 2008

Washington Mutual 5% APY 12-Month CD

This offer is no longer available (WaMu was acquired) but here is a list of the best CD rates.

Tired of 3.5% APY yields? Washington Mutual has upped the ante by offering a 12-month certificate of deposit with a 5.00% APY interest rate with a $1000 minimum deposit. The offer is limited time only so act quickly.

Some other details of the offer:

  • $1000 minimum
  • You can open it online, so open a WaMu checking/savings account combo and fund it through that. Afterwards, you can shift your funds back to your WaMu accounts and get 3.75% APY.
  • Early withdrawal penalty of 3 months

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Tracking Your Credit Score

You can get your credit history for free every single year from each of the credit bureaus (annualcreditreport.com), but there’s no way for you to get your credit score for free.

Why would you want to know your credit score all the time? It’s the very same reason why people jump on a scale to check their weight, while your credit score doesn’t define you, it’s an important metric you should always have a good picture about. Knowing your credit score gives you an advantage over lenders because you know how credit worthy you are. The price of this knowledge is small, the value is limitless.

Why Tracking It Matters

It’s been shown that people who get biofeedback, that is knowledge about their biological statistics like pulse/heart rate, blood pressure, etc; are more able to control their statistics. With feedback, we know whether the unconscious decisions we make can affect our own bodies. Want to slow your pulse? Take your pulse and “try to slow it down.” You’ll notice your pulse count will go down, though all you’re doing is “trying,” not doing anything specific.

Tracking your credit score is similar, except the actions you take will be a little more explicit. Open a credit card and see how your score is affected. Wait a month with no activity, see how your score is affected. By tracking your credit “pulse” as you go about your life, you’ll have a more accurate picture of how your score is being affected by the things you do. No more guessing based on experts giving general advice or thoughts, you have hard facts.

You Have A History

When you have a history of your score, you have more information on that score is affected by your decisions. When you bought a car, did your score go up or down? When you took out a balance transfer, did it go down a lot? When you paid off the transfer, did it go back up? Did it go back up past where it was before the transfer? By having this history you know for certain.

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What Cards Have Balance Transfer Fee Maximum Caps?

I haven’t seen a no fee 0% balance transfer offer in a long time.

However, 0% balance transfers are still widely available, they’ve just instituted the standard 3% balance transfer fee. While this takes them out of contention for balance transfer arbitragers, they’re still a good option for people with credit card debt and would like a 12 month window to catch up as much as they can.

One positive about this whole situation is that some card issues have a 3% balance transfer fee with a maximum fee. This means that if you get a large enough balance, your effective percentage fee will be much lower than 3%. Let us take Discover Cards for example. In general, and you’ll have to check the card’s specifics to be 100% sure, the fee is 3% with a $75 maximum balance transfer fee. If you transfer $2,500, the 3% fee is $75. If you transfer $5,000, the fee stays at the maximum of $75 and the effective percentage is only 1.5%. If you get a limit of $10,000, your rate falls even further.

Here’s a roundup of the fee percentage amount maximum cap rules for each issuer in general (check the specific card you’re interested in to confirm):

  • Discover: 3% with $75 limit
  • Advanta: 3% with $90 limit
  • Chase: 3% with $99 limit
  • Citi: 3% with no limit
  • Bank of America: 3% with no limit
  • Capital One: No known 0% offers
  • American Express: No known 0% offers

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