Hypothetically speaking:
Lets say I have a credit card with $3000 limit. And it's basically maxed out.
The credit card company sends me checks I can use to transfer balances for a 5.9% APR thru 2010. (Despite the fact I have less than $100 available credit.)
So -- hypothetically - if I borrowed $3000 from a friend for a few days, and paid off my entire balance on the card (currently at 20.99%), and then wrote my self a check to get the money back (which would now be at 5.9%) and pay back my friend, that wouldn't be illegal would it?
2007-02-22 15:40:07 · 3 answers · asked by bdb4269 2 in Business & Finance ➔ Credit
Yes - I am am aware of the transfer charge. There is a fee of 4% of the transfer -- Minimum $10/Max $75.
Since I would be looking at about $2900 -- I would be at the max $75 fee. Which would easily be made back in a few months with the new APR.
2007-02-22 16:07:57 · update #1
Usually cash transfer fees are higher than that, and there is often a charge per check as well. Read the fine print carefully. Other than that, I see nothing wrong or illegal with your hypothetical situation, but your friend would want to be very careful to make sure he/she would get their money back. What if you don't pay them back? As a friend, I'm not sure I'd be willing to take that risk or the possible financial and friendship consequences of that potential problem.
2007-02-22 15:48:32 · answer #1 · answered by G A 5 · 0⤊ 1⤋
It's not fraud. It's even easier if you have 2 credit cards, then you can just ping-pong it back and forth, and not have to involve a friend in your finances.
2007-02-23 15:40:28 · answer #2 · answered by Quixotic 3 · 1⤊ 0⤋
That's a great question and I see nothing wrong with that scenario. Go for it.
2007-02-23 00:30:58 · answer #3 · answered by Akbar B 6 · 1⤊ 0⤋