0% Credit Card Convenience Checks
Author: unemployedandbored
Posted: Tue Apr 04, 2006 9:35 am
Post subject: 0% Credit Card Convenience Checks and the Stock Market
I have a friend who is a real gambler. He has an excellent credit rating (FICO) score and gets quite a few offers for 0% Convenience Checks. These offers are for six or nine months.
I told him that I deposit these checks directly into my checking account (that pays 4.37%) and set up an automatic withdrawal of the minimum payment each month. I then pay off the account in full before they start charging interest. I made about $1000 doing that last year.
My friend said I was playing it to safe. He sends the Credit Card Convenience Checks directly into his Ameritrade Account and puts it in Energy Trusts. They pay about 11% in monthly dividends and also move up and down like the stock market. He is convinced that he will come ahead this year because of the high oil prices.
So would anyone on this board gamble (in the stock market) with borrowed money? He said it is no more of a gamble than people who invest borrowed money in a new business like a Restaurant.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Tue Apr 04, 2006 9:07 pm
Post subject:
I spent most of my life as a futures trader, gambling on low margin on various markets. Did I borrow money heavily to gamble that way? Sure! The source of the money didn't affect the outcome. Did I make a large profit? Sure--when I was right.
Did I lose a lot of money? Sure--when I was wrong.
I'm not going to tell anyone not to gamble. Just be prepared to pay back what you've borrowed win or lose.
Reminds me of the old jingle about a short seller:
He who sells what isn't hisn,
Must buy it back
Or go to prison.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
Author: mouse
Posted: Wed Apr 05, 2006 1:02 am
Post subject:
The only GAMBLE I bet on is paying off higher APR's with lower APR's
(as in 0.00%--5.90% max)
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Tue Apr 04, 2006 9:35 am
Post subject: 0% Credit Card Convenience Checks and the Stock Market
I have a friend who is a real gambler. He has an excellent credit rating (FICO) score and gets quite a few offers for 0% Convenience Checks. These offers are for six or nine months.
I told him that I deposit these checks directly into my checking account (that pays 4.37%) and set up an automatic withdrawal of the minimum payment each month. I then pay off the account in full before they start charging interest. I made about $1000 doing that last year.
My friend said I was playing it to safe. He sends the Credit Card Convenience Checks directly into his Ameritrade Account and puts it in Energy Trusts. They pay about 11% in monthly dividends and also move up and down like the stock market. He is convinced that he will come ahead this year because of the high oil prices.
So would anyone on this board gamble (in the stock market) with borrowed money? He said it is no more of a gamble than people who invest borrowed money in a new business like a Restaurant.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: Polonius
Posted: Tue Apr 04, 2006 9:07 pm
Post subject:
I spent most of my life as a futures trader, gambling on low margin on various markets. Did I borrow money heavily to gamble that way? Sure! The source of the money didn't affect the outcome. Did I make a large profit? Sure--when I was right.
Did I lose a lot of money? Sure--when I was wrong.
I'm not going to tell anyone not to gamble. Just be prepared to pay back what you've borrowed win or lose.
Reminds me of the old jingle about a short seller:
He who sells what isn't hisn,
Must buy it back
Or go to prison.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
Author: mouse
Posted: Wed Apr 05, 2006 1:02 am
Post subject:
The only GAMBLE I bet on is paying off higher APR's with lower APR's
(as in 0.00%--5.90% max)
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 12:56 AM
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