0% Balance Transfer - Story to Make You Cringe!

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Originally Posted By: parshisa
Entire credit score and debth thing in US is a total joke, scam I’d say. Very disheartening to see so many people being involved in it without even realizing how deep down they are. I could care less about the credit score, credit cards and all the junk associated with it. If you cannot buy something with cash - you cannot afford it. Simple and effective. Just my opinion


If you pay off the balance every month, it's the same as paying cash.

I did the same as OP years ago, rolled over a car payment into a 0% credit card, I think I had to do it twice before it was paid off in the 2nd year. Could have paid it off, but the stock market was going like gang busters back then so was doing a bit of investing and paying off the loan at the same time. Now I just pay cash, can't be bothered. Fidelity has a 2% cash back card on every purchase. You end up making money more money using credit than cash. I've gone years without paying any interest on credit cards.

Not really sure what you're referring to when you call it a scam. About 1/3 of the people out there pay off their balance every month, the other 2/3's don't which is where the credit card companies make some of their money. They do make some off the other 1/3 due to the merchant fees that are charged on every purchase. It can't really be called a scam if everyone going into it knows how it works and agrees to it.
 
Originally Posted By: parshisa
If you cannot buy something with cash - you cannot afford it. Simple and effective. Just my opinion


While I agreed with this statement for the most part, it should not be a blanket concept. While I used to purchase with cash for years, now I put it all on a high rewards card and pay it off every month. Food, gas, car repairs, clothing, etc. I have to pay for it anyways, as I did with cash, but get a bit back on everything.
 
Originally Posted By: parshisa
Entire credit score and debth thing in US is a total joke, scam I’d say. Very disheartening to see so many people being involved in it without even realizing how deep down they are. I could care less about the credit score, credit cards and all the junk associated with it. If you cannot buy something with cash - you cannot afford it. Simple and effective. Just my opinion

How do you buy a home?
If all I can afford is 15k (10% down on a 150k home)
Should I just pay cash for a 2002 Gulfstream RV instead?
After all, I can "afford" it.
Where should I park my new home?
 
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Originally Posted By: CKN

Just keep tuning in to that guy who says you don't need a FICO to buy anything...even a house.


I bought a house last year with no credit score - literally when they pulled it up I didn't have enough credit history to determine a score.
 
Originally Posted By: Toy4x4
Originally Posted By: parshisa
If you cannot buy something with cash - you cannot afford it. Simple and effective. Just my opinion


While I agreed with this statement for the most part, it should not be a blanket concept. While I used to purchase with cash for years, now I put it all on a high rewards card and pay it off every month. Food, gas, car repairs, clothing, etc. I have to pay for it anyways, as I did with cash, but get a bit back on everything.
It's been proven that you spend more with a credit card than you do with cash. 1-2% cash back doesn't make up for it. The more you spend the more you save is a genius marketing scheme.
 
Originally Posted By: hatt
Originally Posted By: Toy4x4
Originally Posted By: parshisa
If you cannot buy something with cash - you cannot afford it. Simple and effective. Just my opinion


While I agreed with this statement for the most part, it should not be a blanket concept. While I used to purchase with cash for years, now I put it all on a high rewards card and pay it off every month. Food, gas, car repairs, clothing, etc. I have to pay for it anyways, as I did with cash, but get a bit back on everything.
It's been proven that you spend more with a credit card than you do with cash. 1-2% cash back doesn't make up for it. The more you spend the more you save is a genius marketing scheme.

Do you pay cash at the gas pump?
 
Originally Posted By: supton
Originally Posted By: hatt
Originally Posted By: Toy4x4
Originally Posted By: parshisa
If you cannot buy something with cash - you cannot afford it. Simple and effective. Just my opinion


While I agreed with this statement for the most part, it should not be a blanket concept. While I used to purchase with cash for years, now I put it all on a high rewards card and pay it off every month. Food, gas, car repairs, clothing, etc. I have to pay for it anyways, as I did with cash, but get a bit back on everything.
It's been proven that you spend more with a credit card than you do with cash. 1-2% cash back doesn't make up for it. The more you spend the more you save is a genius marketing scheme.

Do you pay cash at the gas pump?
Heck no. I normally use my Citgo(friends own Citgo station) card. I also don't run around acting like that little bit of cash back is going to change my life. I do try to use cash when I'm in a store.
 
Maybe for day to day items. Credit score is important if you plan to purchase a house. If you can afford to pay cash for a house, you are very fortunate...and in very exclusive company.
 
Here's a great example on how the credit score system is a stupid. Last year my buddy moved to US and was shopping for a house. Being fairly new to US he didn't have much credit history and his credit score was obviously low. Several banks DID NOT give him a loan just because his credit score was low. I guess they were lazy or stupid enough not look at his net worth (which was at that time 1M+). Does that make any sense to anyone? would you rather borrow money to someone who has nothing in the bank account (and hope he goes completely broke) or to someone who has something you can go after in case you need to? isn't that a scam? To me, it 100% is
 
to me it's not about BEING or NOT BEING able to afford. it is about whether you have money to buy something or you don't. I'm not saying that is the only way to live or trying to force anyone to think this way. It's just my way and feel free to agree/disagree with it. Or ignore lol
 
Doesn't make me cringe. Free money. I've seen people working the system a lot harder than this back in the fatwallet forum days.

I had a boss in the 1990s that was taking advantage of a loophole in card rules (Discover?) that allowed for no, or low fee cash advances. This is back when you could earn a decent rate on money market / savings. Every month, he'd max out the card with cash advances, put it into a interest-earning account, and pull the money out and pay in full when due. Rinse/repeat. Basically he was able to earn a full year's interest (minus a few days per month) on the banks money.

Gotta be careful though... one slip-up on payment dates can wipe out anything you might earn while playing these games. For my old boss, he viewed stuff like this as a hobby / sport. He ended up retiring at 60 yrs old, so I guess all the time he devoted to stuff like this worked out for him.
 
I do this if I have a large balance on a 0% card and it is nearing the end of the 0% promo period. But look for a no fee transfer too. I have not paid any interest on a credit card in years. I accept most 0% offers and will use that until the promo period ends. Then close the card. I have had at least a 100 credit cards over the years.

The last three or four years the promo periods have been getting longer. Last one, and the one I currently, use is 21 months.
 
Originally Posted By: parshisa
Entire credit score and debth thing in US is a total joke, scam I’d say. Very disheartening to see so many people being involved in it without even realizing how deep down they are. I could care less about the credit score, credit cards and all the junk associated with it. If you cannot buy something with cash - you cannot afford it. Simple and effective. Just my opinion


I must agree with you 100%. People get way too caught up in all of this, "free money", credit nonsense. I've never financed a new vehicle in my life. I had one small mortgage on the first home I ever bought in 1976. And that was paid off in 1985. I've been living debt free ever since.

I only use a credit card to purchase on line. And it is paid off completely as soon as I get the bill. It's not hard to do. It just takes financial discipline. I have no idea what my "credit score" was or is. And I could care less. I'd be more concerned about last weeks weather.
 
It sounds good to me, and you're making it work to your advantage. Thanks for reminding me that I should call my CC company and see if they'll lower my interest rate too.
 
Long as you can pay it off....sounds like a good plan to me. I've done the same exact thing in the past.
 
Originally Posted By: Schmoe
Long as you can pay it off....sounds like a good plan to me. I've done the same exact thing in the past.


Yep.
 
Originally Posted By: hatt
Originally Posted By: Toy4x4
Originally Posted By: parshisa
If you cannot buy something with cash - you cannot afford it. Simple and effective. Just my opinion


While I agreed with this statement for the most part, it should not be a blanket concept. While I used to purchase with cash for years, now I put it all on a high rewards card and pay it off every month. Food, gas, car repairs, clothing, etc. I have to pay for it anyways, as I did with cash, but get a bit back on everything.
It's been proven that you spend more with a credit card than you do with cash. 1-2% cash back doesn't make up for it. The more you spend the more you save is a genius marketing scheme.


Just be careful of what you read about studies and applying that to everyone. A certain percentage of people will spend more with a credit card than paying cash. Doesn't mean everyone though.
 
Originally Posted By: hatt
The more you spend the more you save is a genius marketing scheme.


It reminds me of the whole Nutri System diet scam..... "Just eat the food, and lose the weight!"
 
Originally Posted By: parshisa
Here's a great example on how the credit score system is a stupid. Last year my buddy moved to US and was shopping for a house. Being fairly new to US he didn't have much credit history and his credit score was obviously low. Several banks DID NOT give him a loan just because his credit score was low. I guess they were lazy or stupid enough not look at his net worth (which was at that time 1M+). Does that make any sense to anyone? would you rather borrow money to someone who has nothing in the bank account (and hope he goes completely broke) or to someone who has something you can go after in case you need to? isn't that a scam? To me, it 100% is


I run into this all the time. What people fail to understand is that credit is the ability to borrow money and pay it back in a timely fashion. That means it's meaningless if you have a million or a billion in the bank, but if you don't pay your bills on time, then it doesn't really do them any good. Then they have to sue you and it takes a lot longer and costs them more. So if you have a history of paying your bills on time for the last 10 years, but are paycheck to paycheck, you're a better credit risk than someone who has a million, but no history. Also banks used automated underwriting systems, so if your file meets their criteria, it's approved. They can also resell those loans that meet that criteria. If you have to do manual underwriting and exceptions, sometimes those can't be sold and have to be kept in house. Those have a different set of rules and maybe all they offer for those are 5/1 ARMs, not 30 year fixed ones.

As a landlord, I've noticed that I never really have trouble with people that have 700+ credit scores. Once I took a chance with someone who was in the 600's. She had a decent job and about 30k in the bank. After she moved in, a no good boyfriend moved in with her, she lost her job, got hooked on drugs and blew thru the 30k in about year and I ended up having to evict her. At least it was somewhat easy, the local police sent me a letter saying that the place had been raided for drugs so when I showed that to the judge, the eviction was easily granted.
 
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