I often get convenience checks from the banks that issue my credit cards. These usually go right to the shredder, but today I got some and started thinking...
The offer is 0% interest for a year. There's a 4% transaction fee. Say I wrote myself a check for $1,000 and invested it in my Vanguard funds. I might even invest it in my SEP IRA. Assuming I pay it all back over the course of a year (or, better yet, nearly all at once on the last day of the 0% interest period) so as not to incur any interest, it seems like I'd definitely come out ahead when one considers the value of the shares purchased at today's price in terms of their long-term gains in value, not to mention the tax deduction I get by investing via the SEP IRA. All I have to do is beat the $40 fee.
Is it that simple or am I missing something? Would Regulation T come into effect here?
4% is also slightly better than the 4.125% interest on my mortgage.