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Originally Posted by gary_580
I'd be interested in peoples views on this. I'd be particulary interested in the view of Paul M.
The idea is you get interest free cash from credit cards, bank it, make interest and then pay the cash back when the interest free offer expires.
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Interesting idea, but most credit cards charge a fee for cash which is not insignificant. You'd have to find an account that pays enough interest to offset the cash fee AND to make a profit too.
When you have found an account that pays such a rate, please let us all know
But the scheme suggested here is a little grander, and hence also riskier - so read carefully before applying! Caveat Emptor etc.
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Originally Posted by gary_580
Surely if you do this enough all at the same time your credit rating will plummet and potentially your mortgage lender could insist on you paying off your mortgage or reposession starts?
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Your credit rating is barely affected by borrowing on a credit card that is paid off before interest is charged.
Paying your regular monthly minimum and managing the interest charges etc. is more likely to cause your credit rating to increase.
Failing to pay more than 1 or 2 monthly payments will very quickly push your credit rating down.
So, since the scheme suggests borrowing on the card and then paying off before the 'free' period expires, I suspect there would be minimal effect on your credit rating - it might even improve since you're managing a high credit level without defaulting.
Another thing that can adversely affect your credit rating are getting quotes on loans and then not taking them out (as the quote will do a credit check.)