Questions on Credit Cards - What's the catch?

[kevinf12]

Jcole - your offer did say OR, not and. So he could show you a zero % fee OR a way to convert it to cash. Right?

“Greenie show me a credit card with no fee on balance transfers or a way to convert the line directly to cash via purchases (a reputable issuer that would give a reasonable line) and ill buy you a $50 red lobster gift card.”

I agree that typically they will be 2-3%, but to convert it to cash isnt that abnormal. I usually get the actual checks from the CC company and could write it to my bank account. My offers are usually on a chase freedom card that I dont use anymore and my other chase card…not sure which one, but usually the freedom gives the checks and the fee is typically 2%.

[rawraw]

@Greenman72

@rawraw

@Greenman72

@rawraw

I actually have a 0 APR advance right now to invested at a spread.

“Margining” a credit card with a limit of $10,000 and investing it for six months in any kind of risk-free asset will probably net you almost nothing. It sounds good until you realize that you made…$100 on $10,000. (Assuming 2% interest received and zero paid for 6 months.)

Who said it was a risk free asset? My current spread is something like 14% – I’m investing around maintaing at least an 8% spread.

Your original quote was “I actually have a 0 APR advance right now to invested at a spread.” I took this to mean that it was invested in a no-risk (or at least low-risk) asset.

But where are you getting 14%? If it’s in stocks (and I don’t know where else it possibly could be), then in any six-month period, you could easily lose money. That means you lose money in stocks, lose 3% on the balance transfer, and still owe $10k on a credit card charging 22.9% interest. Not a safe bet by any means.

I’ve been telling all of you that you should get exposure to this asset class in your overall mix – but people here only seem to care about equities: https://www.lendingclub.com/