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Today, I got one of those promotional offers from my credit card company where they send you a check with a promotional interest rate. Normally, I throw them away without even looking at them. The offer I got today was one check with 3.99% APR for 12 mos. OR another check with 0% APR for 6 mos. I have no consumer debt at all, I pay off balances each month so I don't carry revolving debt. I was thinking about getting 1 oz. of gold with this check...my reasoning is as follows: Even though it's credit, using a check to pay for the gold would not incur the (roughly) 3% fee most dealers charge for using credit. Also, my savings rate is such that I could get it paid off pretty quickly.

So, what do you guys think? Is it folly and should I rip it up or am I onto something here...?

Thanks,
Jim

If you can pay it off in Six months an you have Savings to cover it if something happens go for it

If you do not have $2500 in savings Don't

No expert here, but I also have 0 consumer debt, a great credit score, and receive those offers all the time from varying companies. I have yet to open one that doesnt have some sort of fine printed fee or something. Just be careful, I hate seeing sheister banks get at good people. If it truly is 0% for six months fee free and you feel like leveraging your PM holdings then go for it.

you might get around the fee a dealer would charge but there is usually a 3 or 4 % fee on the amount you write the check for

i personally stay away from those offers - its whatever you feel comfortable with

I throw away all such offers. It's too easy to miss some fine print or miss the deadline for cancelling the thing. If you're very good at keeping track of when the card needs to be cancelled it might work for you. Remember, they are counting on you miscounting.

The simple fact you are asking about this tells me you are not sure. I find that if I am not sure... I never risk more than I can afford to let go of. Put that offer in the shredder. Buy in smaller amounts as you can afford.

If you have a 100% guaranteed steady source of income, then the bank is giving you the opportunity to buy something now at today's prices (not what it would cost you in six months) that you're willing to bet will increase in value. I took advantage of a similar offer. You just have to make sure you don't exceed your capability to repay the balance within the six months. If you feel comfortable, I say go for it. Not because of the small differential you would save by writing a check istead of using credit, but because that golden ounce will become much more expensive to purchase in the coming months.

All work and no play makes Johnny a dull boy.

I agree with slvrbck, as long as you double and triple check that there are no hidden fees, I say go for it.

Thanks everyone for the input..I know when people say they're looking for advice, they usually mean they're looking for justification for what they already want to do, but I decided to rip it up. It was really tempting me, and I read the WHOLE offer twice, but I'm happy with the decision Once again, thanks my trusted RC advisers!

Jim