0% credit cards

[Bryan Dunalp]

Hello all I'm hoping for some advice about using 0% credit cards to finance my first deal. I have $50,000+ on 0% interstate credit cards for 12-18 months. I want to stay under 80% of total limit so I'm looking at $40,000 interest free for over a year but it will cost 3% fee to get the money. Any one done this? I'm listening to all the bigger pockets pod casts and they said not to use credit cards. What does everyone think ?

[Avi Garg]

@Bryan Dunalp Its not just about closing the deal. How will you pay your credit card in full by the end of the 0% promotion period? If you don't pay in full, you will be charged higher interest rate ... So lets say you received $40k from CC and bought a property right away (+ closing costs) ... in 6 months you refinance .. now unless your property value increased, you will get a max of 80% of ARV .. which is 32k (minus any closing costs) ...

Is your aggregate credit limit 50K over all cards or just the ones you can get 0%? As @Jerry Padilla mentioned, keep the overall utilization low