posted on April 2, 2001 05:48:16 PM new
That's right $23.08. Here is how easy it was...
I opened a checking account with a new on-line bank. Free checking account, free checks, no fees and 5% APY (4.89 APR).
I have a stack of credit cards (all no annual fee). I carry a balance on only one of them, the one with the lowest interest rate. The others are paid in full every month so I don't pay any interest. One card company sent me a no fee purchase check.
I filled the no fee purchase check out for $3300.00 and deposited it my new checking account. I timed the deposit so I would not have to pay it back for almost 60 days. Near the end of the 60 days I took one of the free checks provided by the on-line bank, filled it out for $3300.00 and sent it to the credit card company.
Since the credit card company was paid before the due date there was no interest for me to pay to them.
While the money was in the checking account it earned $23.08 in interest...
I just love creative financing.
Barry (now I can afford a couple of pizzas) Barris
posted on April 2, 2001 05:54:26 PM new
Watch the fine print, Barry. Several cards will add a charge for your paying them with another card's check and you won't find out about it until the next billing.
I read the fine print real well, no hidden charges. Also this happened 2 months ago and no charges have shown up (thank God).
Edited for clarification... I deposited the credit card check into a bank checking account and used a check drawn on the bank checking account to pay the credit card off. I didn't use a check from a credit card company to pay another credit card company.
posted on April 2, 2001 06:15:16 PM new
I know someone who bought a house with hologram money like that. 5 planets in Scorpio - he knows how to use other people's resources for sure.
This was about 5 years back -- before they tightened all the rules, but he was flipping over 100,000 around on 20 cards. Getting rebates too.
posted on April 4, 2001 09:49:20 AM new
This is actually a more common practice that you would think.. I know some friends when they were starting college, they did their financial aid things (you know the forms and forms and forms). Anyway, there is a kind of loan called "Subsidized" where the government pays the interest while you are in school, and then you start picking up interest after you graduate or leave school.
What they did is took out every possible subsidized loan they were offered, and put the money into high-interest CD's. They worked to pay the college bills, and within a few months of graduating, began to the move the money from the Cd's into savings accounts (lower interest, but more liquid). Within the last month of college, they moved the money into checking accounts and paid off the principal of the loans using the $ originally lent to them... all the interest earned on the $ while in the CD's - theirs to keep.. and some of them did VERY nicely that way...
