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/biz/ - Business & Finance

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823968 No.823968 [Reply] [Original]

So /biz/, I recently acquired my first credit card, which comes with 0% interest for the first 12 months.

I've been thinking that it's possible to make money on this offer, but it seems to simple to be true.

>all spending on credit
>get more 0% cards to avoid hitting limit
>direct debit for minimum repayment each month
>bank what you're not paying them immediately and accumulate interest/dividends/other income
>Pay off cards in full before offer expires

And voila, you've made money from credit.

Is this a good idea? Will it hurt my credit score?

Pic unrelated, from Dubai trip a while back.

>> No.823980

illegal, reported

>> No.823986
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823986

>>823980
sorry? How is this illegal?

>> No.824011
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824011

>>823980
Please. I'm intrigued.

>> No.824060

Wouldn't even be worth the trouble. Assuming you haven't gone full retard and are only buying things you'd normally buy anyway, you'd only gain what, a few hundred per month to invest?

>> No.824065

>>824060
It's not all that much trouble. I'm relatively frugal with my spending so wouldn't expect more than £300-400 per month to be on credit ever. My limit is £3500. The interest free period is 12 months. Seems reasonable to me.

>> No.824075

>>824065
You won't be able to make any decent money on 3,500 if you use it to invest in anything with the appropriate risk for this situation. Even 7,000 (2 cards) would be a waste of time. 0% cards existed in the 90s, I haven't heard about any in a long time.

>> No.824101

>>824075

do it then report back

you will make money but i want to see how much you actually make

if you make even 50% its not bad

>> No.824104

>>824101
>>823968

oops my bad, meant to tag OP

>> No.824111

>>824104
>>824075

>> No.824115

Generally, risk free investments pay fuck all money.

* 0% interest cards are not really 0% - they charge a fee of usually 3% when transfer debt to them.
* Generally (with exceptions), that has to be existing credit card debt that you have, i.e. you have to have debt for this to work. You don't want to have debt, trust me.
* However, carrying a large balance and then paying it off will build your credit rating. If you are lucky, you'll break even on interest, so this is your primary benefit.
* You will need iron discipline not to use any of this credit you take on.
* Banks look at, among other things, how much debt you have and how much credit you have available relative to your income. If at the end of this you try to buy a car on credit when you have an empty 20k credit card, the bank will wonder what would happen to your viability if they gave you the car and then you spent all that credit.
* Don't fill the cards, aim to go to about 60%.

>> No.824160

>>824115
>* Don't fill the cards, aim to go to about 60%.

jesus christ

is there something like a deep cycle card?

this credit industry shit is bullshit.

>> No.825098

>>824101
Will do. It'll be a long while though.

>> No.825102

>>824115
I'm not transferring any debt (yet at least). The 0% applies to new purchases made.