Money Tips: Credit Card Offers for Investments?

Posted On: October 1, 2006

Guest: Board Monitor
Board Monitor/ Administrator
Post subject: Credit Card Offers for Investments?
Posted: Mon Sep 25, 2006 3:43 pm

This message posted by e-mail request from one of our visitors:

I am curious that I heard some people said they can use credit card advanced cash to invest (like T-bill, or short term CD), but I don’t understand how, as credit card charge so high interest rate, so how to do that? Or it’s just rumor?
_________________
Regards,
Curtis Arnold
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews

Sign up for our free monthly e-mail newsletter!

Guest: stevejk
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Mon Oct 02, 2006 1:17 pm

Although there are those lucky few who get offers for 0% APR $0 transaction fee balance transfers, I’m doing something similar.

I have a new credit card that offers 12 months 0% APR on purchases. Every month, I pay the minimum balance to the credit card company and move the rest of that month’s purchases to a high yield savings account earning 5%. As long as I pay the minimum on time, and pay it off in full before the 0% APR offer ends, it is an interest-free loan.

Granted, I could put the money into 28-day Treasury Bills or short term CDs, but I want something more liquid in case I need to pay it off in a hurry.

Guest: fire3000
Credit Expert (100+ Posts)
Posted: Tue Oct 03, 2006 7:30 am

I use my home equity line of credit as an intermediary between credit card cash and investments. First I wrire a HELOC check to make an investment (short term CD at my local bank or a municipal bond fund) and after the check clears I will BT from a credit card to the HELOC. Chase, BoA, and Citi also send me blank checks that I can write directly to myself or to my stock broker. For the past year my card debt has averaged over $100,000 and my effective interest rate including the fees has been less than 4%. I make a profit of about one and a half percent.

Guest: Board Monitor
Board Monitor/ Administrator
Posted: Tue Oct 03, 2006 12:37 pm

Thanks for sharing fire3000 and stevejk! Very cool.

By the way, just upgraded your account status stevejk!
_________________
Regards,
Curtis Arnold
Board Monitor
http://www.CardRatings.com
20K+ Credit Card Reviews

Sign up for our free monthly e-mail newsletter!

Guest: exmbnaperson
Posted: Wed Oct 04, 2006 11:48 pm

Does investing in this way still work- even at the 3% no cap fee?

Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Thu Oct 05, 2006 6:47 am

I wouldn’t do a 3% or 4% NO MAX BT even at 0.00% to pay off a 9.99% — 19.99% APR on another credit card

(but that is me)