One of my credit card companies has offered me a check to do anything I want to with. I can write the check up to $7500 and pay less than 1% interest for the next 6 months.
I can take that money, put it in my money market and earn 5.25% interest. This will net me about $120-130 dollars and then I will just pay it off before the interest rate goes up to 4.99%. I will only write the check for $7000. I realize this might lower my credit score, but my score is 817 now.
Should I do this??
2006-10-30 07:13:50 · 7 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
NO, you should never use those credit card checks, even with the low interest rate they claim, they will likely hit you with all kinds of other service fees that will nullify the 130 net gain. If you really want to do something like this, get a regular bank loan
2006-10-30 07:22:42 · answer #1 · answered by D_Herz 2 · 0⤊ 0⤋
NEVER...NEVER.
Because you'll be like a lot of people and start tapping into that money and the next thing you know it will be gone but the debt won't be.
Plus, have you heard of something called Universal Default. It's where the credit card companies can increase your increase rate for basically any reason. For example, if you get behind on another payment (i.e. car loan, mortgage, etc.) and they hear about it, they can increase you interest rate to a ridiculous amount (i.e. 25%+).
I'd put the check in the shredder (along with the credit card).
Scott....
2006-10-30 15:54:33 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I wouldn't do it. What's the total upside to you? $150 max! (The interest you'd earn on $7,000 minus the interest you'd pay, for 6 months.)
The downside is -- something could come up and you could not repay all of the $7,000; you'd be tempted to keep that money; etc.
Plus you have to remember to pay it off in time.
Seems like a lot of work to me for what amounts to a mere $25 per month max profit.
If your credit score is that high, then surely you are not that hard up for an extra $25/month!
My recommendation: don't bother!
.
2006-10-30 15:16:36 · answer #3 · answered by djc 3 · 0⤊ 0⤋
Seems like a lot of effort for $120 - $130 before taxes
2006-10-30 15:30:30 · answer #4 · answered by waggy_33 6 · 0⤊ 0⤋
No. Why would you lower your credit score for $130 max. Sounds like a waist to me.
2006-10-30 15:18:21 · answer #5 · answered by Oracle 2 · 0⤊ 0⤋
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RE Pls help, needing to hear from you, should I do this?
One of my credit card companies has offered me a check to do anything I want to with. I can write the check up to $7500 and pay less than 1% interest for the next 6 months.
I can take that money, put it in my money market and earn 5.25% interest. This will net me about $120-130 dollars and then I will just pay it off before the interest rate goes up to 4.99%. I will only write the check for $7000. I realize this might lower my credit score, but my score is 817 now.
Should I do this??
2014-09-03 13:18:01 · answer #6 · answered by Anonymous · 0⤊ 0⤋
NO!!! credit card companies will tell you anything. what if you're not able to pay it off. what if something happens?? you never know, but with those people i wouldnt take the chance
2006-10-30 16:28:00 · answer #7 · answered by Lost 2 · 0⤊ 0⤋