stephenandrew
Recycles dryer sheets
- Joined
- May 5, 2007
- Messages
- 148
Is this worth it?
(1) I can borrow $17,500 from a credit card company (cash advance) for 6 months--the interest rate is 0.99% (fixed) + a $75.00 transaction fee. Total cost for 6 months by my calculation: $161.63.
(2) I can put the $17,500 in an online savings account and earn 3.7% (variable). Assuming the rate stays fixed, I would earn (w/o compounding): $323.75
(3) Profit: $162.12 (after paying back credit card company)
I have read about folks doing this before, and it always seemed to be more hassel than what it was worth, but never did the math to see how much I could come out ahead. I have no other credit card balances, good credit. Will this impact my credit score? I have sufficient cash flow to make the minimum monthly payments to the credit card company---which are probably minimal.
Thanks.
(1) I can borrow $17,500 from a credit card company (cash advance) for 6 months--the interest rate is 0.99% (fixed) + a $75.00 transaction fee. Total cost for 6 months by my calculation: $161.63.
(2) I can put the $17,500 in an online savings account and earn 3.7% (variable). Assuming the rate stays fixed, I would earn (w/o compounding): $323.75
(3) Profit: $162.12 (after paying back credit card company)
I have read about folks doing this before, and it always seemed to be more hassel than what it was worth, but never did the math to see how much I could come out ahead. I have no other credit card balances, good credit. Will this impact my credit score? I have sufficient cash flow to make the minimum monthly payments to the credit card company---which are probably minimal.
Thanks.