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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?
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?
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?
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?
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)
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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 ).
