How to build credit

sublime · #1 11-29-2007, 07:55 AM

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Still not understanding how this can work. Cash advances generally don't fall into all of this 0% stuff right?

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balance transfer...either to a credit card or directly to your bank account. if its a credit card, say request 10k be sent to card A...Card B (the one with the 0% balance xfer) sends the 10k to card A and gives you 0% for 12 months to pay it back. you then have a positive balance on card A and request it be sent to you....kinda like you overpaid somehow by 10k and want it back...its not an issue with the majority of cards, they just send it to you. sometimes card B will even send you a check directly. you then invest the 10k in whatever and make min payments for 11 months and pay it off completely before the 12 months is up...the interest earned is yours. however the side effects are people who get your mail (and open it!) will think you are a bottom feeder.

my explanation is kinda meh, you can google for better. im sure you get the idea though.

TheMetetron · #2 11-29-2007, 08:13 AM

You can balance transfer to a card with $0 balance and request a check sent to you? My Chase card doesn't seem like that'd fly with them as they throw a fit if I try to overpay at all online.

You can do a balance transfer with the money to a bank account?

It's beginning to make a bit more sense, but some of the details don't quite make sense to me.

Henry17 · #3 11-29-2007, 08:44 AM

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also i would like to point something out. people who do stuff like this (hustle credit cards) almost always don't NEED the money. it has zero to do with needing money and everything to do with appreciating how money can work for you.

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I don't understand why anyone would do something if you don't need to. By need I mean it has an impact (or at least they believe it will have an impact) on their quality of life.

Anyway the flaw in my reasoning was that I assumed the ability to get credit was strongly correlated to income. That for someone to manage to get two $100k credit cards would require that they make at least $150-200k.

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i APPLAUD people who do stuff like this and just based on the law of averages i most likely have a > net worth than any of the friends you talked with.

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Unlike you I won't make any assumptions about your net worth. I also have no idea what my friends' net worth is either. I do know what they pay in rent since they are my neighbours. If you are using the law of averages as a foundation then you'd lose this bet.

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Still not understanding how this can work. Cash advances generally don't fall into all of this 0% stuff right?

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I have never researched it but I think I have a general idea of how it works.

1. Get a credit card. Max it out with cash advances. You will pay interest on this but only for a very short period.

2. Get a second credit card. Take advantage of the introductory offer and transfer the entire balance from credit card 1 to this card. Now the loan is interest free.

3. Meet all the obligations of the second card. Some require nothing. Others require that you make X amount in purchases.

4. As the promotion ends get a new credit card. Got to Step 2 and repeat.

TheMetetron · #4 11-29-2007, 09:06 AM

Henry,

I make mid-six figures a year and I'd do this for an extra $6k a year. It would have zero impact on my qualify of life, but I'm not retarded.

I'm not sure why this is so hard for you to understand.

Henry17 · #5 11-29-2007, 09:14 AM

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Henry,

I make mid-six figures a year and I'd do this for an extra $6k a year. It would have zero impact on my qualify of life, but I'm not retarded.

I'm not sure why this is so hard for you to understand.

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Well if it has zero impact on the quality of your life then the utility value of the $6k is zero.

The cost of doing this is not zero. There is the effort, the stigma, the minimal risk of missing something in the T&C.

So it isn't my position that is hard to understand. If it really has no impact on your quality of life then your position is the one that doesn't make sense. Why would you do anything for no reward?

TheMetetron · #6 11-29-2007, 09:22 AM

You are confusing something not impacting my quality of life now with not having any reward. I'm all for increasing my net worth to retire earlier.

Henry17 · #7 11-29-2007, 09:33 AM

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You are confusing something not impacting my quality of life now with not having any reward. I'm all for increasing my net worth to retire earlier.

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Then it does have an impact on the quality of your life. Mind you you could accomplish the same thing by just cutting out $16/day in spending and that would be a lot easier and less embarrassing than this.

Maybe I'm alone on this but there are certain things you just don't do when you hit a certain wealth level.