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could this work


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#1 bonehead

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Posted 29 May 2006 - 02:04 AM

How about this. Could it be possible to get a cash advance on every credit card you have up to your credit limit. Then put the money in a Hsbc/ing savings account for the month, and when the bill comes due take all of the money out but keep the interest.

10,000 dollars at 5% for a month comes to about 42 dollars doesn't seem like a bad idea. does anyone see a problem with this?



#2 markber

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Posted 29 May 2006 - 03:28 AM

QUOTE(bonehead @ May 28 2006, 07:04 PM)
How about this. Could it be possible to get a cash advance on every credit card you have up to your credit limit. Then put the money in a Hsbc/ing savings account for the month, and when the bill comes due take all of the money out but keep the interest.

10,000 dollars at 5% for a month comes to about 42 dollars doesn't seem like a bad idea. does anyone see a problem with this?
View Post


QUOTE(bonehead @ May 28 2006, 07:06 PM)
How about this. Could it be possible to get a cash advance on every credit card you have up to your credit limit. Then put the money in a Hsbc/ing savings account for the month, and when the bill comes due take all of the money out but keep the interest.

10,000 dollars at 5% for a month comes to about 42 dollars doesn't seem like a bad idea. does anyone see a problem with this?
View Post



Things that come to my mind....
1) Most credit card charge a fee for cash advances
2) Many, if not most, credit cards start to calculate interest from the moment you do cash advance.

What you may want to do is to find a credit card that offers 0% APR for certain period of time and $0 fee for balance transfers for new accounts. With 12 month of 0% APR and no BT fee, you will be get $500 after a year of having money in 5% account.

Check our credit card database on iCrego to find such cards (e.g. Citi® Dividend Platinum Select® Card)



#3 lucknowm

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Posted 30 May 2006 - 03:28 PM

QUOTE(markber @ May 28 2006, 11:28 PM)
QUOTE(bonehead @ May 28 2006, 07:04 PM)
How about this. Could it be possible to get a cash advance on every credit card you have up to your credit limit. Then put the money in a Hsbc/ing savings account for the month, and when the bill comes due take all of the money out but keep the interest.

10,000 dollars at 5% for a month comes to about 42 dollars doesn't seem like a bad idea. does anyone see a problem with this?
View Post


QUOTE(bonehead @ May 28 2006, 07:06 PM)
How about this. Could it be possible to get a cash advance on every credit card you have up to your credit limit. Then put the money in a Hsbc/ing savings account for the month, and when the bill comes due take all of the money out but keep the interest.

10,000 dollars at 5% for a month comes to about 42 dollars doesn't seem like a bad idea. does anyone see a problem with this?
View Post



Things that come to my mind....
1) Most credit card charge a fee for cash advances
2) Many, if not most, credit cards start to calculate interest from the moment you do cash advance.

What you may want to do is to find a credit card that offers 0% APR for certain period of time and $0 fee for balance transfers for new accounts. With 12 month of 0% APR and no BT fee, you will be get $500 after a year of having money in 5% account.

Check our credit card database on iCrego to find such cards (e.g. Citi® Dividend Platinum Select® Card)
View Post



==

Some more things you should double check :

1. Do not use the card for anything else. Otherwise the issuer will apply your payments to low interest charges first and only when that is fully paid of, the payments will be applied to higher interest payments ( purchases etc. which could be say 15% ). Interest on say 15% purchases even for a few hundred dollars could negate the earnings from your CD

2. Setup your account for automatic debit once the CD term is nearing. You don't want to miss even a single payment otherwise it could trigger DEFAULT RATE, sometimes as high as 25% for your current ( and other cards as well ).



#4 vojd

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Posted 30 May 2006 - 07:04 PM

I was thinkig long time about it. With tiny interest rates few years ago it would not be worth bothering, but now it is a different story laugh.gif
Though cash advance will not work probably (I never saw it free, 0% APR). But how to use a BT option if I do not carry any balances on my cards (pay them in full)? Any ideas how to make it work?



#5 bonehead

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Posted 30 May 2006 - 07:36 PM

what is a "bt option"



QUOTE(vojd @ May 30 2006, 07:04 PM)
I was thinkig long time about it. With tiny interest rates few years ago it would not be worth bothering, but now it is a different story  laugh.gif
Though cash advance will not work probably (I never saw it free, 0% APR). But how to use a BT option if I do not carry any balances on my cards (pay them in full)? Any ideas how to make it work?
View Post





#6 vojd

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Posted 30 May 2006 - 08:56 PM

Balance Trasfer

[quote=bonehead,May 30 2006, 03:36 PM]
what is a "bt option"



#7 suj

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Posted 31 May 2006 - 05:34 AM

QUOTE(vojd @ May 30 2006, 12:04 PM)
I was thinkig long time about it. With tiny interest rates few years ago it would not be worth bothering, but now it is a different story  laugh.gif
Though cash advance will not work probably (I never saw it free, 0% APR). But how to use a BT option if I do not carry any balances on my cards (pay them in full)? Any ideas how to make it work?
View Post



Jonathan from MyMoneyBlog.com has two great blog entries on this topic. Anyone interested in making money off 0% no fee balance transfers should check it out.


http://www.mymoneybl...er_miles_1.html
http://www.mymoneybl..._money_aka.html



#8 bonehead

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Posted 31 May 2006 - 06:27 AM

what exactly is a balance transfer, is that like a cash advance?



[quote=vojd,May 30 2006, 08:56 PM]
Balance Trasfer

[quote=bonehead,May 30 2006, 03:36 PM]
what is a "bt option"
View Post
[/quote]



#9 vojd

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Posted 31 May 2006 - 02:29 PM

Thanks suj!
That was interesting laugh.gif



#10 Bankgeek

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Posted 02 June 2006 - 05:06 PM

When you do a balance transfer the bank will require the customer to make minimum payments on the amount borrowed, the smallest minimum is 2%. So if you borrow $10,000 at the end of the first month you have to pay the bank $200 which is applied to the balance. Assuming you get 5% for one year on $200 that's $10. At the end of the second month you make another payment of 2% on the unpaid balance which is $196. Assuming you get 5% on $196 for eleven months equals $8.98 that you're not getting. And so on & on until you get to the last payment. So the real return--assuming you get 5% on the $10,000-- is $500 minus the interest you didn't receive on the payment amounts. You still make money but not as much as it might seem.







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