I got $90K from credit cards, where would you invest?

Quote from misterno:

I did several Balance Trasfers and received $90K cash and deposited them to savings account in Dollardirect savings bank. I am receiving 3.2% and my cost is almost 0%.

If it was you, where would you invest only for 1 year and only on FDIC protected? I checked all over internet but was not able to find better yielding banks. I am not into risky instruments or stocks only safe bets.

By the way if I want, I can get more, probably make the total balance to $130-$140K but that needs a little extra work.
More...
How easily could that 0% rate be changed?
It is based on some main rate (i.e. like Fed Funds, LIBOR, or something)

If you can get 5% interests or below for 5 years, go, get some DIA, or good dividend paying bluechips (please diversify).
The idea is that even if interests rise , you may be able to pay interests with the dividends.

I was thinking of doing the same thing myself, but couldn't get the low rates you got.
 
Quote from crgarcia:

How easily could that 0% rate be changed?
More...

For any reason whatsoever. Every CC reserves the right to classify you as default risk based on their own model.

As his credit report is updated, the score can drop due to such high utilization and the snowball effect will start.

The only time this makes sense is for a quick high return opportunity. Or a new start up business with high profit margins that is ready to execute & turn over inventory.

To do this for a few percentage points over 6-12 months is just silly.
 
You guys don't understand or new to the game

My risk is zero zip zero nada 00000000

That means I can not lose

If I lose that means FDIC don't pay to account holders in bankrupt banks

That means we are all doomed, it is the doomsday

And I don't see that happening. No way.

BTW I don't need a high credit score until my next BT that is why I applied to all BTs the same day. No mortgage no debt ever

Capiche?

These are simple facts just go read fatwallet.com finance forum, there is one guy playing with close to $1MM. As long as you deposit in FDIC accounts you are fine.
 
Quote from misterno:

You guys don't understand or new to the game

My risk is zero zip zero nada 00000000
More...

Do you realize that you took on debt?

Do you realize that you need to make payments each month?

Do you realize that if you're classified as default risk, you will be charged 25+% APR?

And you're doing this all for what? A measly few percentage points a year? About $3k?

Maybe you are the one who does not understand.
 
I've never heard of 0% risk in an investment, must be nice...

How does the credit card company benefit from lending you 90K @ 0% for a year? Just hoping that you continue to have a balance on the card after the year is up? You would think the credit card company would get something out of this besides potential for a future customer...

I could be wrong, but I would be reading all of the tiny little fine print on this one.
 
Quote from Anaconda:

Do you realize that you took on debt?

Do you realize that you need to make payments each month?

Do you realize that if you're classified as default risk, you will be charged 25+% APR?

And you're doing this all for what? A measly few percentage points a year? About $3k?

Maybe you are the one who does not understand.
More...

The wind whistling through his ears... It is like a 3 year old with his Dad's pistol. He loves the noise, but has no clue about what the dangerous end can do.

Not to mention what bankruptcy does to someone who tries to get a job in the future..
 
All my payments are in automatic withdrawal from checking account.

I have been doing this for 1,5 years and never been late and never been charged interest or a fine.

Yes, the return is small but I am not doing anything except the first day and the last day of the year.

Imagine if I can get close to $1MM, same work more interest gain
 
Say goodbye to your credit.

For $3k, it is just not worth it. You never know when they will unflag you, if ever.
 
Yes, the return is small but I am not doing anything except the first day and the last day of the year.
More...

that's why it's not really worth it..when guaranteed CD's or T bills earn 5-5.5% few years ago-it does worth it..but @ 0.5-1.5% APR???
of course you can buy bonds,ETF's,high dividend stocks, but risks are VERY VERY high right now..imagine yourself invested in AAA Lehman bonds,which traded right now for about 0.1 cents on dollar..
do you have any savings to cover this CC debt immediately in such event? if not-forget about it..
i'm sitting on huge pile of cash right now,simply because once again-it's too risky to invest in anything.anything. i would accept looses from inflation for at least couple years,before i put my money to work again...cash is king today
 
Quote from JB3:

Say goodbye to your credit.

For $3k, it is just not worth it. You never know when they will unflag you, if ever.
More...

i done same exactly thing few years ago and i did not see any negative impact on credit or fico score.
i still have all those credit cards(literally a pile of them) in my deposit box. they all still open...using them for gas from time to time..once you close them-then it will affect your score
 
You must log in or register to reply here.
Back
Top