Comments on: 0% Credit Card App-O-Rama – Update 2

By: Raymond

Raymond — Tue, 09 Oct 2007 04:01:28 +0000

I was contemplating starting up a round of app-o-rama but the recent decrease in interest rates has me re-thinking whether the lower bank interest rate is worth the credit score hit.

By: Chuck

Chuck — Tue, 14 Aug 2007 11:57:50 +0000

Jon – I’m not really worried about my credit score right now as I only recently purchased my home and have no plans to take out any loans for the next couple years. If I did I probably wouldn’t have done this app-o-rama as just the sheer volume of applications is enough to bring down my score.

By: Jon Wells

Jon Wells — Mon, 13 Aug 2007 00:44:31 +0000

HSBC offers online savings accounts that earn 5.05% APY. Most credit card companies will send promotional "checks," in this case with 0% interest for a period of time. Write yourself one of these promotional checks for the full amount of the credit line, maxing out the card, and then deposit that money in our HSBC account. While it's in the savings account, it will earn interest while you don't owe any interest on the cards. When the money becomes due to the credit card companies, withdraw it in full and pay off the cards, but keep the interest earned (in this case, $3400).

Basically, you're making money off of someone else's money they're loaning to you interest-free, and then giving the money back before any interest is due.

By: Chusu

Chusu — Sun, 12 Aug 2007 08:02:18 +0000

Hello
I dont understand the part when you said you can stick this in your HSBC account and earn $3400 interest. How can you do it? I am very confused is it possible to get little explanation on that please.

By: Jon Wells

Jon Wells — Wed, 08 Aug 2007 20:57:04 +0000

Longtime lurker, first time commenter...

While my initial reaction to the amount of credit received and the potential earnings from your HSBC account, I couldn't help but shudder at the hit your credit score would surely take should you decide to simultaneously max them out and exercise their earning potential.

Is this something you're worried about at all? And, I suppose the best question to ask is, do you plan on taking such a drastic course of action?

That said, your site is quite insipring.