EvillPie - credit cards @ 18%

[mikeymike]

“If I knew your stockbroker I’d just be getting my hands on a load of 0% credit cards and low rate loans then ship it all to him for a nice easy 18% return.” – EvilPie

I am afraid your ruse is fundamentally flawed for the following reasons.

1.   If you decided to open a new account today with a boutique broker on a Discretionary Portfolio you would need a minimum of 200K.

2.   Most 0% credit cards charge immediate interest on cash withdrawals.

3.   You can still buffer on some 0% cards to pay off a loan – but the credit card company will want to see the debt first and will then port the money directly to that account.

4.   Even if you could apply for 20 credit cards - @ 10k each, you would need to have cash reserves to pay back the minimum monthly amount from month 1.

5.   A discretionary portfolio is where the broker handles all investments you have no say where your money is invested though you  choose your level of risk appetite.

I do not own a credit card and have no debt – credit cards are in my opinion a slippery slope if you cannot pay the balance off each month – it could mean you are living beyond your means though there might be other reasons.

Also having an investment in not necessarily for you own personal benefit – mine will go to the education of my nephew’s children – if and when he decides to have a family.

I have and will always be a spender and risk taker – but from my own experience making some investments in your younger years can prove fruitful when age catches up with you.

On a final note if you require the name of my stockbroker please let me know

[ripple11]

“If I knew your stockbroker I’d just be getting my hands on a load of 0% credit cards and low rate loans then ship it all to him for a nice easy 18% return.” – EvilPie

I am afraid your ruse is fundamentally flawed for the following reasons.

1.   If you decided to open a new account today with a boutique broker on a Discretionary Portfolio you would need a minimum of 200K.

2.   Most 0% credit cards charge immediate interest on cash withdrawals.

3.   You can still buffer on some 0% cards to pay off a loan – but the credit card company will want to see the debt first and will then port the money directly to that account.

4.   Even if you could apply for 20 credit cards - @ 10k each, you would need to have cash reserves to pay back the minimum monthly amount from month 1.

5.   A discretionary portfolio is where the broker handles all investments you have no say where your money is invested though you  choose your level of risk appetite.

I do not own a credit card and have no debt – credit cards are in my opinion a slippery slope if you cannot pay the balance off each month – it could mean you are living beyond your means though there might be other reasons.

Also having an investment in not necessarily for you own personal benefit – mine will go to the education of my nephew’s children – if and when he decides to have a family.

I have and will always be a spender and risk taker – but from my own experience making some investments in your younger years can prove fruitful when age catches up with you.

On a final note if you require the name of my stockbroker please let me know

 - Its generally said to be advantageous  to have a credit card if you want to have a good looking credit file. Lenders like to see credit being used and paid off on time ....obviously in full is best.

-Useful to give a month or so to pay off if you need to make a sudden big purchase/bill.

-  Reasuring going abroad... ie for emergencies/ hotel pre authorizing etc

[StuartHopkin]

2.   Most 0% credit cards charge immediate interest on cash withdrawals.

3.   You can still buffer on some 0% cards to pay off a loan – but the credit card company will want to see the debt first and will then port the money directly to that account.

These two are just plain wrong.

Many cards now allow you to transfer cash straight to your bank at promotional rates for a small charge. I think the lowest i have seen is 1.9% for 24 months interest free on a cash transfer.

There is absolutely no requirement to show them other debt first.

[mikeymike]

Please could you tell me the credit cards that do not charge if you draw cash out of the bank.

I did say that credit card companies will transfer cash to a bank but some not all will want to know the purpose.

[SuuPRlim]

Mikey I think Matt was joking me old pal.

He was basically saying why are you looking to get involved in businesses with high capital requirements when you are getting 18% returns on a stock portfolio

[mikeymike]

Withdrawing cash on your card attracts several charges, as well as a higher interest rate.

Cash advances are usually charged a higher rate of interest. While the average interest rate for purchases is approximately 20% per year, credit card cash withdrawals will usually be charged at rates averaging 26%.

Cash advances tend to attract interest from day one. Normally, purchases you make on your card get an interest-free "grace" period for you to pay – this can be anything from 45 to 60 days. However, no such breathing period exists for a cash advance.

As well as interest, cash advances attract a fee – this is typically 3% of the amount you withdraw, with a minimum fee of £3, although these charges can be higher. There are only a few providers who do not have this charge.

Using an ATM abroad can bring an extra charge, on top of the interest and cash withdrawal fee. Foreign usage fees (charged by the majority of cards) can be anything from 2.50% to 2.99% of the amount you withdraw.

If you use an ATM abroad, remember that the local bank that operates the cash machine may charge you for the privilege. There are also some ATMs in the UK that will charge you for their use.

If you make a purchase with cash withdrawn from a credit card, you don't get purchase protection. If you make a purchase using the card directly, you benefit from enhanced protection if your goods aren't delivered or don't meet the standards you expect.

[StuartHopkin]

Mike me old cocker we are talking about money transfer facilities not taking cash out the ATM.

https://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs#lowfee

There you have 20 months for 1.9% fee

[mikeymike]

I did say that on my point 3

[EvilPie]

3.   You can still buffer on some 0% cards to pay off a loan – but the credit card company will want to see the debt first and will then port the money directly to that account.

I've got a Barclaycard with a £16k or so limit that allows money transfers direct to your bank. Every now and then they do one with 0% fee or low fees so that's how I did it. I can assure you that when they make the offer they don't ask any question at all other than "what's your account number and sort code".

I got hold of 4 new cards all with 0% balance transfer rates with 0% fee for varying lengths of time between 24 and 29 months. I did a couple of money transfers and immediately balance transferred them which gave me about £30k cash for no fees at 0% interest.

It can be done but yes you have to be disciplined as if you just go out and spend it you're f**ked when repayment time comes. If I had access to an 18% return though I'd get £6k from that money over 2 years which would be pretty cool.

As it happens I used it to buy a car because I'm a bit stooped like that but at least it's a 0% car loan

[StuartHopkin]

3.   You can still buffer on some 0% cards to pay off a loan – but the credit card company will want to see the debt first and will then port the money directly to that account.

I've got a Barclaycard with a £16k or so limit that allows money transfers direct to your bank. Every now and then they do one with 0% fee or low fees so that's how I did it. I can assure you that when they make the offer they don't ask any question at all other than "what's your account number and sort code".

I got hold of 4 new cards all with 0% balance transfer rates with 0% fee for varying lengths of time between 24 and 29 months. I did a couple of money transfers and immediately balance transferred them which gave me about £30k cash for no fees at 0% interest.

It can be done but yes you have to be disciplined as if you just go out and spend it you're f**ked when repayment time comes. If I had access to an 18% return though I'd get £6k from that money over 2 years which would be pretty cool.

As it happens I used it to buy a car because I'm a bit stooped like that but at least it's a 0% car loan

[EvilPie]

Mikey I think Matt was joking me old pal.

He was basically saying why are you looking to get involved in businesses with high capital requirements when you are getting 18% returns on a stock portfolio

Tongue in cheek perhaps but with an element of seriousness. Unless you can find a better return than 18% then why would you do it?

I've actually been in the bank today on another matter and had a brief chat about their stocks management services. I was surprised that their 'medium risk' was returning 8% which was a lot better than I expected although of course the market has been good in recent years. This was just a bank, not a high end broker so it makes the 18% seem much more feasible although not without risk of course.

I always look back 10 years or so when a reasonably wealthy friend using a broker lost chunks when Marconi went pop and it still worries me. I'd love to have a dabble but the thought of losing even £10k scares the s**t out of me. Strange really when you consider how much I've jizzed away in the casino and strip clubs over the years

Short term I'll risk it all after a few beers, long term I'm incredibly cautious. Makes zero sense but hey that's the way I am.

[SuuPRlim]

lol Matt <3

[Marky147]

I don't even want to think how much dough I've literally jizzed away over the last 20 years...

Not been in a stripclub for over 5 years, but might be dipping my fingers back in next summer, though

[Marky147]

Also, my Barclaycard are always offering me cash @ 1.9% fee, with ~12m 0%

[Woodsey]

Also, my Barclaycard are always offering me cash @ 1.9% fee, with ~12m 0%

Think I got 30 months at about 2.9% last year, not much over 1% per year, crazy deals.....