i know... its crazy isn't it?
My favorite was back in Jan/Feb you could open up a new chase checking account with $100 and end up with like $600 in bonuses!
how do the banks do this?
- Thread starter MadJack
- Start date
i know... its crazy isn't it?
My favorite was back in Jan/Feb you could open up a new chase checking account with $100 and end up with like $600 in bonuses!
Still dont really see how this work with the cc offers I get...........sure they will give me 0% interest for a year but anything I take out I have to make monthly payments on...........
Just have not had any offers where they state........
TAKE THIS 10,000 loan at 0% int AND MAKE NO PAYMENTS FOR A YEAR.............
Just have not had any offers where they state........
TAKE THIS 10,000 loan at 0% int AND MAKE NO PAYMENTS FOR A YEAR.............
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Ok.........so you are making monthly payments!!!
But..........you are making 3% per month on that 30,000.................$900................
Are you trying to tell me your monthy payments on 100,000 plus are no more than $900 per month?????
ok if you are worried about min. payments here is an example:
You get a CC with a $15,000 limit and can do 0% interest for one year.
Take that $15k and dump it in your checking account.
Your minimum monthly payment is going to be a lil over $200 - we'll use $200 for easier numbering.
so, 12 months of $200 payments is $2400.
15,000 - 2400 is 12,600$
Take that 12,600 and put it in a cd for the year.
earn 4%
End of one year you will have 13,100 (using simple interest, not taking into account when it compounds daily/monthly)
Withdraw 13,100 and pay off the remaining 12,600 on your cc.
keep $500 profit.
now do that on a massive level with about 200k.
maverick,
I think I see your stumbling block here.
CC's don't make it a "one year term" to pay it back. most CC's have a minimum payment of 2.2% of the credit used.
which is how people go in debt forever and ever.. blah blah blah.
you are thinking that you have to make 12 equal monthly payments that total the amount you have taken out.
think of it in terms of a ballon payment.
pay minimum as long as possible, then one big payment at the end.
I think I see your stumbling block here.
CC's don't make it a "one year term" to pay it back. most CC's have a minimum payment of 2.2% of the credit used.
which is how people go in debt forever and ever.. blah blah blah.
you are thinking that you have to make 12 equal monthly payments that total the amount you have taken out.
think of it in terms of a ballon payment.
pay minimum as long as possible, then one big payment at the end.
I see what you are saying.........if anyone had a concern on the min monthly payments......thne just hold this amt out of the money borrowed if need be.........
so based on your example above..........say you have 150,000 in cc debt at 0% then your monthly payments would be 2000..........so if need be take 24,000 out of the 150,000 and invest 126,000...........if a person had nothing for min pmts
so based on your example above..........say you have 150,000 in cc debt at 0% then your monthly payments would be 2000..........so if need be take 24,000 out of the 150,000 and invest 126,000...........if a person had nothing for min pmts
exactly.
the whole key of it is to get as much "free money" as possible in the highest yeilding savings tool possible.
the whole key of it is to get as much "free money" as possible in the highest yeilding savings tool possible.
to follow up with this...
Saint,
Most of the people on that board doing those things are working professionals. You are not going to be able to produce the high credit limits needed to really reap the benefits of this by being a degenerate.
i.e, professional, homeowners, up to date on all bills, have money, smart enough to be able to handle it.
as crazy as it sounds, this is a "hobby" to a lot of people much like plunking down $50 on a sports team is to others.
A lot of these guys have worked 1 on 1 with people who are overwhelmed with CC debt to get them straightened out and use their knowledge to help those folks get some 0% interest offers so that they can pay off their debt. If you like money, its worth reading a lot of those threads.
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It really is "interest free" money
It really is "interest free" money
I did this with a small amount in August 2007 with a Citicard Diamond Preferred card. There are all sorts of offers out there.
It was only $4K so I knew I would be able to afford it if something went haywire (and I was skeptical about it at the time); however, I put it all into the markets. Buying bullish when I needed too, short selling when I needed to, etc. I got most of my info from watching Fast money and Mad Money on CNBC. Hit RIMM real big for a nice gain after they reported earnings and made a nice mint. Also, bought Apple around 150 and sold around 200. Shorted the Financial and housing ETF's, etc etc etc. I always made the $69 min pmt. Over time I probably more than doubled the amount and had to just make the min pmts. In August I have about $3500 to pay back. It is a lot safer to tie it up in a good mutual fund or CD but it is well worth it.
kneifl
It really is "interest free" money
I did this with a small amount in August 2007 with a Citicard Diamond Preferred card. There are all sorts of offers out there.
It was only $4K so I knew I would be able to afford it if something went haywire (and I was skeptical about it at the time); however, I put it all into the markets. Buying bullish when I needed too, short selling when I needed to, etc. I got most of my info from watching Fast money and Mad Money on CNBC. Hit RIMM real big for a nice gain after they reported earnings and made a nice mint. Also, bought Apple around 150 and sold around 200. Shorted the Financial and housing ETF's, etc etc etc. I always made the $69 min pmt. Over time I probably more than doubled the amount and had to just make the min pmts. In August I have about $3500 to pay back. It is a lot safer to tie it up in a good mutual fund or CD but it is well worth it.
kneifl
interesting thoughts, Marine and others....only question i have is regarding credit score and history....obviously it drops a lot after you apply for all the cards and then eventually comes back up, which is fine......
so at the end of the year, when you pay back all the debt and keep the profit, do you just close out all of the cards that you used for the deal? keep some of them, close others? Because essentially, once the debt is all due and you pay it back and keep the profit, you dont need any of the cards anymore and can go back to normal spending on regular card....:shrug:
so at the end of the year, when you pay back all the debt and keep the profit, do you just close out all of the cards that you used for the deal? keep some of them, close others? Because essentially, once the debt is all due and you pay it back and keep the profit, you dont need any of the cards anymore and can go back to normal spending on regular card....:shrug:
nooooooooooooooooo you dont want to close them!
the best thing you could do is to consolidate the limits into one card. Say you had 3 different citicards pulled out and 4 chase branded cards.
Lets say each had 20k limit on them. Call Citi and have them move the limits into one card and then you can close the other two. That leaves you with one big limit of 60k on a single card.
do the same for chase.
You dont want to close this card, because now you have a high limit, which will allow you to really take advantage of things when the next offer comes out for that card.. --- like, they might send you a 0% offer but with a fee of 75 or 100$ or something. if you can move 60k, that $100 is going to be nothing in the long run. But if you were paying that $100 on a transfer of like 10k, it would eat a chunk of your profit up.
also, it helps with you next go round of applications because you are going to have an awesome level of available credit, and not much debt against it. which makes your utilization lower, which makes your credit score more attractive.
oil futures
oil futures
i think the oil futures still have a bit of upside
if the 200,00 per barrel is correct you have 70.00 of upside
oil futures
i think the oil futures still have a bit of upside
if the 200,00 per barrel is correct you have 70.00 of upside
3% per annum. Breaks down to about $75 montly interest.
To make $900 monthly interest on a 3% investment, you'd need $400,000
this is quite interesting...
My stumbling block to understanding is this. Are you (marine) saying that you can take a cash advance out for the maximum, say 20K, and that doesn't in itself give you fees? I thought any kind of cash advance was ridden with fees.
I call the credit card company and say, "I want you to send me a check for 20k", or "I want you to wire 20k to this bank account xxxxxx", and they will do it at 0%??
thanks.
My stumbling block to understanding is this. Are you (marine) saying that you can take a cash advance out for the maximum, say 20K, and that doesn't in itself give you fees? I thought any kind of cash advance was ridden with fees.
I call the credit card company and say, "I want you to send me a check for 20k", or "I want you to wire 20k to this bank account xxxxxx", and they will do it at 0%??
thanks.
Most CC's all have promos going with "0% Balance transfers for X months"
some have fees associated with it like a balance transfer fee of 3% of the total with a cap at $75 or $100, others have no cap, others have no fees either.
call them up or do it online, whatever is easier, and they will send you a check for X amount of dollars.
All of them I have looked at say cash advance = 21% or so interest rate. I don't follow the 0% and getting the money in my account.
i have several offers sitting here that are cash advances. they send the checks, cash the check and zero interest for 6 months :shrug:
