At fairly predictable intervals, I get the Visa "cheques" letter. Always personally addressed, it's clearly junk mail. It usually goes straight to the recycle bin, yesterday being no exception to the unwritten rule. The difference this time is in my behaviour this morning, when I went back to the recycle bin and took a second look at the terms and conditions.
The idea of the program is that I can use the cheques to move a large balance of money owing from one account to another, and pay a much lower interest rate on it, guaranteed for six months. I can transfer as much as I like, provided the combined total of amounts owing on the cheques and on the Visa balance does not exceed the Visa limit.
The Visa company wins because they are getting interest payments they would not normally see, and I am pretty sure they are gambling on the fact that I'll forget to move the money back to the other account later, when the period of the guaranteed lower interest rate expires and crosses over to the realm of extortion: 19.5%
Looking at the Royal Bank credit line balance, the CIBC Visa limit, and the difference of at least 4% in interest rates, it seems to me that I could save in the range of $400 during the next six months if I actually used a Visa cheque for the intended purpose. Instead, I am going to call the Royal Bank and cite the CIBC rate, to try to negotiate a lower one on the credit line. If it comes without an expiration date, I could save more in the long haul.
Wish me luck, and the presence of mind to place the call before I max out the line of credit.
