Stoozing

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.

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?


http://www.moneysavingexpert.com/cgi...76883546,34894

[NitroNutter]

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.

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?


http://www.moneysavingexpert.com/cgi...76883546,34894

LOL uumm tell me how if you havnt defaulted on your mortgage payments they would have any grounds to demand payment in full for it and or get a repossesion order ?

[danielf]

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.

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?


http://www.moneysavingexpert.com/cgi...76883546,34894

This quote from that page sums it up for me:

Using this system correctly generates substantial gains.* Someone with an £8,000 credit limit rotating debts to keep it 0% over a year, would earn over £300.* Yet thereââ‚ƚ¬Ã¢â€žÂ¢s no need to stop there, providing you take proportions, or until the credit card companies finally get wise, you can continue to do this system for years - many have

You need an 8 grand credit limit to get profits of around £300. You really need quite a credit limit to make substantial amounts of money. Not worth the hassle in my opinion. Specifically if it can affect your credit rating.

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.

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.

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?

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.)

[paulyoung666]

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.

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?


http://www.moneysavingexpert.com/cgi...76883546,34894

surely the interest you make would be less than the interest charged

Originally Posted by NitroNutter

LOL uumm tell me how if you havnt defaulted on your mortgage payments they would have any grounds to demand payment in full for it and or get a repossesion order ?

if your no longer worthy of the credit that the lender based its lending to you on. i dont know if banks and building societies check this after the loan was issued but i would expect that they do.

[danielf]

Originally Posted by paulyoung666

surely the interest you make would be less than the interest charged

It uses the 0% introductory offers, so you don't pay interest.

Originally Posted by paulyoung666

surely the interest you make would be less than the interest charged

you get the cash interest free for say 6-9 months

[NitroNutter]

Originally Posted by gary_580

if your no longer worthy of the credit that the lender based its lending to you on. i dont know if banks and building societies check this after the loan was issued but i would expect that they do.

They cannot terminate a contract based on the principle you may default as you have over hit other credits, hell even if you default some ie you become sick etc, theres scope to re balance the books. You would then be up for a potential evalutation fee on your property to ensure its worth more value than is *secured* against it.

Credit cards mean nothing, they have no security and can do nothing but accpet payments either offered by yourself or applied by a court ruling.

Originally Posted by gary_580

if your no longer worthy of the credit that the lender based its lending to you on. i dont know if banks and building societies check this after the loan was issued but i would expect that they do.

I see no reason why a bank/mortgage lender would re-assess your credit rating on an existing loan, unless you failed to make a payment or asked to reschedule the loan.

Originally Posted by ScaredWebWarrior

I see no reason why a bank/mortgage lender would re-assess your credit rating on an existing loan, unless you failed to make a payment or asked to reschedule the loan.

the reason i can see is risk. They would be aware if they reassed you that you were now a higher risk. My question is, do banks and builidng societies do this periodically?

Does anyone know the answer for fact as opposed to opinion?

[NitroNutter]

Originally Posted by gary_580

the reason i can see is risk. They would be aware if they reassed you that you were now a higher risk. My question is, do banks and builidng societies do this periodically?

Does anyone know the answer for fact as opposed to opinion?

fact is risk assesment after the fact is too late and still even if it was done the mortgage lender has to have grounds to terminate a contract, and that means it *has* been breached not it might do. If a contract was terminatable based purely on a suposition a breech may occur then what is the point of the contract in the first place ?

Originally Posted by gary_580

the reason i can see is risk. They would be aware if they reassed you that you were now a higher risk. My question is, do banks and builidng societies do this periodically?

Does anyone know the answer for fact as opposed to opinion?

My 'opinion' is based on my many dealings with financial institutions over the years, including working for 2 for some years.

Once they have your business, they internally credit score you, and they track your account to determine their exposure (to financial risk) from your account. And that's based on your payment record to them.

Now, this is based on how it works in the credit card business - as I was told it.

I have also come across having had a credit check upon changing a loan/terms/schedule - because it's at that time they need to re-assess why you might be doing that - clearly if you're suddenly showing up with a bad credit rating, then it may (or may not) be in their interest to allow you to do so.

So I would not worry about my credit rating if I were to partake of this scheme, but I'd be extremely worried about making a mistake in managing it ending up costing me hundreds, if not more.

[Shaun]

Originally Posted by gary_580

the reason i can see is risk. They would be aware if they reassed you that you were now a higher risk. My question is, do banks and builidng societies do this periodically?

Does anyone know the answer for fact as opposed to opinion?

Yes they do, Banks regularly credit check their existing customers, this then enables them to see what other products they can offer you. It's all down to up selling on their part, most banks even do a credit check on you before upgrading your card from solo to switch/maestro.

Not really something you should worry about.

As for the idea here, well yes it'll help your credit rating, BUT you'll not make a much money on it. Even though there may be no interest charged on balance transfers and purchases, there sure as hell will be fees and interest on cash advances. There always is.

Originally Posted by dellwear

Yes they do, Banks regularly credit check their existing customers, this then enables them to see what other products they can offer you.

Find out if your bank is checking your credit.

http://www.uk.experian.com/

Will show you in detail who is making credit checks on you, when and why.