Debt-Free..Again!

[Tommy_Dolitte]

Finally....

Man, it's a good feeling again...

I have an MBNA Platinum Plus...$10 K limit, 9.99% flat APR for all transaction types....how does this rate on a scale 1 to 10 (1 = poor)?

TD

 

[Mr._johngalt]

Finally....

Man, it's a good feeling again...

I have an MBNA Platinum Plus...$10 K limit, 9.99% flat APR for all transaction types....how does this rate on a scale 1 to 10 (1 = poor)?

TD

1

 

[maddythebeagle]

-10

 

[REWahoo]

Finally....

Man, it's a good feeling again...

I have an MBNA Platinum Plus...$10 K limit, 9.99% flat APR for all transaction types....how does this rate on a scale 1 to 10 (1 = poor)?

TD

It rates a 10, but only if you never use it....

REW

 

[Tommy_Dolitte]

What would be a 10? Had no idea I was so far off!!!

 

[wabmester]

Well, of course, you should try for no debt, but if you need to take on debt, make it cheap. 0% balance transfers would be a good start. And usually you can get a line of credit that has a better APR than a regular credit card (I had a LOC when I was in college, so it can't be too hard to get).

 

[Mr._johngalt]

Well, of course, you should try for no debt, but if you need to take on debt, make it cheap.   0% balance transfers would be a good start.   And usually you can get a line of credit that has a better APR than a regular credit card (I had a LOC when I was in college, so it can't be too hard to get).

I hold lots of credit cards. Hardly a day goes by without receiving
promo offers at -0-, 1.99. 2.9, 3.9, 4.9 , 5.9% etc. Some are only for balance
transfers, but some are for anything at all, and some rates are locked as long as you
carry the balance. I had one today for 1.99% on the full credit line, locked until January, 2006, and no fees to access.

JG

 

[Tommy_Dolitte]

 

I hold lots of credit cards.  Hardly a day goes by without receiving
promo offers at -0-, 1.99. 2.9, 3.9, 4.9 , 5.9%  etc.  Some are only for balance
transfers, but some are for anything at all, and some rates are locked as long as you
carry the balance.  I had one today for 1.99% on the full credit line, locked until January, 2006, and no fees to access. 

JG

What strategy are you using to leverage this? That's the motive ofmy question...I do I leverage in effect...a low interest loan? Should my strategy be to skip around vs being loyal? I've had my card for a decade now and have read that card hopping can be detrimental to your credit score--that being said, is this a credible statement in that it applies to those of us that have good credit and manage our incomes/spending well?

 

[maddythebeagle]

What is this, the dave ramsey show?

I just closed a discover card (they are good for getting deals) and they offered to reopen it with 0% on purchases for 6 months. I bet if I called them back, I could get them up to 12 months, but really dont care. I pay my purchases off every month and you get better deals opening new accounts. I have a few balance transfers at 0% for 12 months that I am just putting in a money market account. I might open some more of these once I get comfortable with it. If you have an existing card, it isnt hard to get 0-2% transfer for 6 months (again, you probably can call and get extended). Maybe get them to waive the balance transfer fees.

Of course, if you have a consumer problem, dont bother. Not good to give wine to alcoholic....

 

[JPatrick]

Finally....

Man, it's a good feeling again...

I have an MBNA Platinum Plus...$10 K limit, 9.99% flat APR for all transaction types....how does this rate on a scale 1 to 10 (1 = poor)?

TD

Any credit card that is fee free and provides you with a reward for using it is a good one.  Oh, the interest rate?  Any rate will do because you should never pay interest. Therefore 9.99% or 25% is irrelevant.

 

[Tommy_Dolitte]

I hear you. I will never pay interest on a card again. That was $612 dollars down the drain!!!!

*off to eating tuna fish*

 

[maddythebeagle]

http://www.cardratings.com/newmessageboardfr.html

is a good message board for questions.

 

[Mr._johngalt]

Any credit card that is fee free and provides you with a reward for using it is a good one.  Oh, the interest rate?  Any rate will do because you should never pay interest. Therefore 9.99% or 25% is irrelevant.

This is true except when you can take the CC money and make money
on their money.  Many ways to do that.  And then if you can get rewards
on top of it........sweet!

JG

 

[Mr._johngalt]

What is this, the dave ramsey show?

I just closed a discover card (they are good for getting deals) and they offered to reopen it with 0% on purchases for 6 months. I bet if I called them back, I could get them up to 12 months, but really dont care. I pay my purchases off every month and you get better deals opening new accounts. I have a few balance transfers at 0% for 12 months that I am just putting in a money market account. I might open some more of these once I get comfortable with it. If you have an existing card, it isnt hard to get 0-2% transfer for 6 months (again, you probably can call and get extended). Maybe get them to waive the balance transfer fees.

Of course, if you have a consumer problem, dont bother. Not good to give wine to alcoholic....

I've been called with these offers and have the "deal" sweetened twice
without my even asking. I just turn it down or hesitate and they
say "Well, we can also offer.....". The other day, I just said "Okay, tell
me everything you can offer me and then I will choose one."

JG

 

[Mr._johngalt]

What strategy are you using to leverage this?  That's the motive ofmy question...I do I leverage in effect...a low interest loan?  Should my strategy be to skip around vs being loyal?  I've had my card for a decade now and have read that card hopping can be detrimental to your credit score--that being said, is this a credible statement in that it applies to those of us that have good credit and manage our incomes/spending well?

"loyal" ? We're talking money and business here. I might be loyal to my
cousin who sells insurance, or my daughter the stockbroker. The credit
card companies have to compete constantly for my business. As long as
I am a desirable customer they either give me what I want or I drop them like
a hot rock.

JG

 

[laurence]

What strategy are you using to leverage this? That's the motive ofmy question...I do I leverage in effect...a low interest loan? Should my strategy be to skip around vs being loyal? I've had my card for a decade now and have read that card hopping can be detrimental to your credit score--that being said, is this a credible statement in that it applies to those of us that have good credit and manage our incomes/spending well?

Allegedly a long history with a card helps your credit score, but hey, keep the account and just transfer the balance to the lowest bidder. You don't have to close it.

 

[Jay_Gatsby]

Allegedly a long history with a card helps your credit score, but hey, keep the account and just transfer the balance to the lowest bidder.  You don't have to close it.

Yes, but don't you need to be concerned about having too many open accounts?

 

[KB]

If you have too much available credit, that can ding your FICO score also along with a too high debt to available credit ratio. I have found that keeping the older credit cards without a balance open is better for my FICO score than keeping newer ones open.

A few years ago I opened a few '0 interest for 1 year' accounts to do some improvements on my house. When I paid them off, my available credit was too high and my FICO score dropped about 30 points. After closing those newer accounts, my score went back up.

 

[maddythebeagle]

Allegedly is the key word. I dont know if the scoring is known for sure and varies. There is a lot little tricks and ways to improve your score (do a search in the fool.com or msn.com). Like keeping your oldest account open, etc. Opening a new account probably drops your score a few points for a few months. I think the biggest thing is not to have anytthing negative like late payements, etc. that will make it harder.

 

[Marshac]

My MBNA visa gift card just came in the mail today... $150 in free money simply for applying (and using) a credit card. Lovely. The $100 from Sony was nice too... as well as the $100 in gift cards from Citi....

I really don't care about my FICO score at this point- $350 in free money is worth a few dings.... and even then, I have only lost 3 points.

Free money is my favorite kind.

 

[Mr._johngalt]

"loyal" ?  We're talking money and business here.  I might be loyal to my
cousin who sells insurance, or my daughter the stockbroker.  The credit
card companies have to compete constantly for my business.  As long as
I am a desirable customer they either give me what I want or I drop them like
a hot rock.

JG

And another thing...............
Today I got an offer from one of my credit cards to draw 100% of my credit
line at -0-% for 6 months with NO FEES. A real no-brainer! Anyway,
I knew I had 2 cards from this particular bank and was not using either.
I called and asked them to combine the cards into the one offering
the -0-%. They did and thus tripled my availability. Good deal.

JG

 

[dory36]

And another thing...............
Today I got an offer from one of my credit cards to draw 100% of my credit
line at -0-% for 6 months with NO FEES.  A real no-brainer! Anyway,
I knew I had 2 cards from this particular bank and was not using either.
I called and asked them to combine the cards into the one offering
the -0-%.  They did and thus tripled my availability.  Good deal.

JG

I have received a handful of these, and always find fine print saying that there would be a 3% (or so) "cash advance fee". More fodder for the shredder.

 

[daxm]

Somewhere along this thread someone said that they know a way to use this "free money" to invest.  Could they go into more detail?

I am very consciencious about my debt and the use of CCs (In fact I don't have any revolving credit right now).  I don't need the use of CCs for daily life but would consider using the money to invest.

 

[maddythebeagle]

I dont know if you want to use it to invest. I think JG puts the money in a liquid savings account and makes money on the interest. I think the key is to have the money available to pay back if the cc decides to up the rate and they can if they want to. I have used these for short term loans and have a small balance on a couple of cards at 0% right now, but could pay back if needed. JG has over 100k but he is retired, lol.

 

[daxm]

Would you advise this as an investment opportunity?  With my credit score I could probably get all the CCs I would ever want to have.  (Not that I would go that crazy right off but just looking at a way to make an buck easier than trying to track down renters.)