jonah
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Post by jonah on Sept 16, 2015 12:39:47 GMT
There is a 36m 2.99% fee or 24m 1.89% fee super balance transfer deal (they pay the cash into your bank account rather than needing a balance transfer from another card) with MBNA at the moment I have recently started borrowing 0% cash advances from credit cards to invest in P2P. I opened an MBNA credit card for this purpose and paid the fee for them to pay cash into my bank account which I invested into P2P. I did the same with a Virgin card. No problems. I use a separate credit card for normal spending. I dislike the risk of borrowing to invest, but the returns have persuaded me to take that risk. I hope I won't regret that decision when we have the next market downturn. I don't know how maxing out credit cards will impact my credit score. I used to pay off the full balance every month but now I pay the minimum. Depends on the lender. Most will see the 'promotional rate' flag on your credit file and tweak their view of you according.
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mikes1531
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Post by mikes1531 on Sept 16, 2015 12:44:03 GMT
Also Halifax seem to do a £1 a day overdraft fee on £1200 That's no bargain. Looks like 30+% p.a. interest to me. And for anyone considering borrowing to invest... Don't forget the tax situation. The interest you earn is taxable, while the interest or BT fees you pay come out of after-tax money. That's obviously not an issue if you're not a taxpayer, but how many non-taxpayers can borrow significant sums? And if you're a higher-rate taxpayer then the tax situation can have a significant impact.
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arbster
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Post by arbster on Sept 16, 2015 13:32:03 GMT
Also Halifax seem to do a £1 a day overdraft fee on £1200 That's no bargain. Looks like 30+% p.a. interest to me. And for anyone considering borrowing to invest... Don't forget the tax situation. The interest you earn is taxable, while the interest or BT fees you pay come out of after-tax money. That's obviously not an issue if you're not a taxpayer, but how many non-taxpayers can borrow significant sums? And if you're a higher-rate taxpayer then the tax situation can have a significant impact. +1 for considering the tax situations, but those of you with non-taxpaying partners, do make sure you take the greatest possible advantage of their unused tax allowance, assuming you can trust them not to run off with the balances...
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Investor
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Post by Investor on Sept 16, 2015 19:20:49 GMT
There is a 36m 2.99% fee or 24m 1.89% fee super balance transfer deal (they pay the cash into your bank account rather than needing a balance transfer from another card) with MBNA at the moment I have recently started borrowing 0% cash advances from credit cards to invest in P2P. I opened an MBNA credit card for this purpose and paid the fee for them to pay cash into my bank account which I invested into P2P. I did the same with a Virgin card. No problems. I use a separate credit card for normal spending. I dislike the risk of borrowing to invest, but the returns have persuaded me to take that risk. I hope I won't regret that decision when we have the next market downturn. I don't know how maxing out credit cards will impact my credit score. I used to pay off the full balance every month but now I pay the minimum. Minimum payments vs full balance have no effect on your credit score, I have been stoozing with credit cards for many many years and my current Experian credit score is 999, I don't think they have a 1000 score. Ironically the only reason I have now had to scale back my stoozing is that with this credit score, the credit card companies, although not seeing me as a risk, now seem to realise that I am not a profitable customer and the last few credit card applications have come back with credit limits that are not conducive to stoozing. The record so far was M&S at £250 whereas in the old days everyone was happy to advance me figures between 15k and 25k with 18k as the mean. Largest ever total stooze position was at 87k with about 6.1% gross coming in annually from it. Will re-iterate as above this is NOT for people who cannot manage money effectively, or those who do not have a calendar to mark the end of stooze period for each card so as to avoid getting caught out on the last month. Since the 'death' of stoozing I have turned my new fun activity to offset mortgages and now get simply amazed at how flexible my dear friends at the bank seem to be each time I renew one of my far too many mortgages.
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trevor
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Post by trevor on Sept 16, 2015 21:17:14 GMT
I'm stoozing on 5 different credit cards and keep records on a spreadsheet when the interest fee period runs out and pay it off with another BT. Very profitable.
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Post by tybalt on Oct 14, 2015 16:46:27 GMT
I am almost tempted £ 10,000 HSBC at 3.5% over 5 years versus 9.5% on ThinCats net of defaults. However 40% tax hits in 2017 unless Groucho Marx tax avoidance 'successful' so I think not
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