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Credit Cards and 0% APR
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| kush paintings |
Alright so my dad went to a real estate lecture the day, and the go goes off on a tangent at one point, starting off by saying "I have 190 credit cards".
Here is why: He says he takes out these credit cards at 0% APR for the first year, which you get in the mail all the time. He will take out the maximum amount he can withdraw from the credit card in the form of cash, and then deposit the amount in a savings account for say like a 10 month period. He will earn the interest on the money and then make sure to give back the original amount before the 12 month period expires, after which point the credit card companies have a tendancy to want to f you in the a. So he winds up with whatever his interest has earned him with doing perhaps an hour tops of work. Do this as a mass project and you have a nice source of side income.
I just got a card in the mail today for 0% APR and want to give this theory a go. What are your thoughts on this strategy, as I am sure if I walk in to any bank they arent going to give me a straight answer on this? |
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| Yoepus |
Don't think it will work.
The more line of credits you have extended to you, the lesser your credit score. Especially if you have more than 2-3 cards.
Further being a longterm card member helps your score.
Lastely, most cards charge a rate for cash that is not 0% ,but typically 1.5 or 3 even during introductory. |
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| Coup |
| it will generate minor income but its disadvantages (as said above) plus the administration behind the scheme (remember u have to make payments to each card) is probably not worth the income. |
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| ogvh5150 |
| Always read the fine print on the back of your statement along with that little booklet with the teeny weeny writing. |
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| psychosomatica |
| savings accounts will never exceed prime rates.. APR = above prime rate. I think the prime rate in the united states is approaching 10%... your savings account will give you.. 3%? |
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| Marc Summers |
| Are credit cards the best way to get your credit score up? |
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| Yoepus |
| quote: | Originally posted by Marc Summers
Are credit cards the best way to get your credit score up? |
Actually a mortage is. |
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| ogvh5150 |
Has there been a doppelganger effect?
Yoepus giving financial advice.
What's next occrider becoming the zionist mustard standard bearer?
:eyes: |
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| Fir3start3r |
http://www.myfico.com/
If you don't know what your FICO is, start readin'...
You should be able to do one annual 'soft check' against your FICO without penalty; any more than that and it starts getting flagged <<-- flagged is BAD.
| quote: |
These percentages are based on the importance of the five categories for the general population. For particular groups - for example, people who have not been using credit long - the importance of these categories may be somewhat different.
Payment History
* Account payment information on specific types of accounts (credit cards, retail accounts, installment loans, finance company accounts, mortgage, etc.)
* Presence of adverse public records (bankruptcy, judgements, suits, liens, wage attachments, etc.), collection items, and/or delinquency (past due items)
* Severity of delinquency (how long past due)
* Amount past due on delinquent accounts or collection items
* Time since (recency of) past due items (delinquency), adverse public records (if any), or collection items (if any)
* Number of past due items on file
* Number of accounts paid as agreed
Amounts Owed
* Amount owing on accounts
* Amount owing on specific types of accounts
* Lack of a specific type of balance, in some cases
* Number of accounts with balances
* Proportion of credit lines used (proportion of balances to total credit limits on certain types of revolving accounts)
* Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans)
Length of Credit History
* Time since accounts opened
* Time since accounts opened, by specific type of account
* Time since account activity
New Credit
* Number of recently opened accounts, and proportion of accounts that are recently opened, by type of account
* Number of recent credit inquiries
* Time since recent account opening(s), by type of account
* Time since credit inquiry(s)
* Re-establishment of positive credit history following past payment problems
Types of Credit Used
* Number of (presence, prevalence, and recent information on) various types of accounts (credit cards, retail accounts, installment loans, mortgage, consumer finance accounts, etc.)
Please note that:
* A score takes into consideration all these categories of information, not just one or two.
No one piece of information or factor alone will determine your score.
* The importance of any factor depends on the overall information in your credit report.
For some people, a given factor may be more important than for someone else with a different credit history. In addition, as the information in your credit report changes, so does the importance of any factor in determining your score. Thus, it's impossible to say exactly how important any single factor is in determining your score - even the levels of importance shown here are for the general population, and will be different for different credit profiles. What's important is the mix of information, which varies from person to person, and for any one person over time.
* Your FICO score only looks at information in your credit report.
However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting.
* Your score considers both positive and negative information in your credit report.
Late payments will lower your score, but establishing or re-establishing a good track record of making payments on time will raise your score.
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| Yoepus |
| quote: | Originally posted by ogvh5150
Has there been a doppelganger effect?
Yoepus giving financial advice.
What's next occrider becoming the zionist mustard standard bearer?
:eyes: |
what? what do you mean?!
Since when do Jews not give financial advice?!
;) |
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| ogvh5150 |
Oh yeah forgot about that bankers thing you guys got going. My bad.
So tell me if one has bad or no credit and needs to get a mortgage what does one do? |
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