>Be me. >Buy house, take out P&I mortgage with Bank A for $100,000 at 5% p.a. with unlimited redraw facility. >Have a credit card with the Bank A, both accessible via online banking. >Sign up for 10 x $10,000 balance transfer credit cards with other banks and credit unions. >Receive the $100,000 in balance transfers into the Bank A CC account. >Transfer $99,000 from the CC into the mortgage. >Set up monthly transfers (redraws) from the mortgage to each of the 10 balance transfer cards. >When each card's BT period ends (e.g. at 12 mths, 15 mths, 18 mths), transfer its remaining balance (e.g. $5,000) from the mortgage to the BT card and close the card. >Rinse and repeat. >Pay $0 interest on the CCs and pay fuck-all interest on the mortgage (whose principal is down around the $1,000 mark at the outset). >…? >Fucking MEGA PROFIT.
Aside from the matter of transferring 10 x $10,000 "credit card debt" that doesn't technically exist, what am I missing?
you cant pay mortgage debt off with a credit card. youd need to drip-withdraw from an ATM - transfer to bank acct and then pay off with debit card
also you wont get approved for 10x£10,000 credit cards at the one time or even within 5 years of taking the mortgage.
>anti fraud and money laundering
Alexander Cook
>you cant pay mortgage debt off with a credit card. You can, it's just stupid. In my scenario, you would receive the funds from the other bank and then move those funds from the Bank A CC account into the Bank A mortgage, i.e. just moving funds between two linked accounts.
>youd need to drip-withdraw from an ATM - transfer to bank acct and then pay off with debit card I don't know if you can't read, or you're just not very bright.
>also you wont get approved for 10x£10,000 credit cards at the one time or even within 5 years of taking the mortgage. 1. It's $ not GBP so more like 5000 GBP. 2. Someone I know is already doing all this and it's working like a charm.
Asher Ramirez
>You can, it's just stupid. In my scenario, you would receive the funds from the other bank and then move those funds from the Bank A CC account into the Bank A mortgage, i.e. just moving funds between two linked accounts. you cant here
>I don't know if you can't read, or you're just not very bright. as above
>1. It's $ not GBP so more like 5000 GBP. 2. Someone I know is already doing all this and it's working like a charm. 1. irrelevant 2. why are you on here then - go and do it and stop looking for validation.
Kevin Walker
thanks for the post friend, if i wasn't an idiot i might consider doing this at worst you lose a house you only paid minimal interest and property taxes on and maybe fuck your credit
Samuel Ortiz
kek, I'll be amused to learn how exactly such a loss might transpire.
Bentley Morgan
also balance transfer fees usually between 1 and 2%
$2000 every two years (assuming 24 month 0% balance transfer) makes it less worth it.
Nathan Thomas
>why are you on here then - go and do it and stop looking for validation.
>Why don't more people do this?
Brandon Ross
OMG must I elaborate every fucking detail...
>only BT cards with $0 annual fee and 0% BT fee would be chosen
Wyatt Ramirez
i've got two questions though, what do you mean by close out the card and don't you have to pay the interest of the entire 100,000 mortgage even if you make payments sooner
Adrian Powell
>what do you mean by close out the card Close the BT card (i.e. each $10,000 BT card) to avoid paying any standard-rate (20%) CC interest.
>don't you have to pay the interest of the entire 100,000 mortgage even if you make payments sooner No, you only pay interest on the balance; paying an extra $99,000 into the mortgage at the outset reduces the balance to ~$1,000, so you only pay interest on ~$1,000.
Alexander Lopez
do you even know what a balance transfer is?
Leo Morris
Plus 100% card utilize bomb your credit score.
Would need over 30 fucking cards
Hudson Powell
Your plan won't work fag. Do it yourself if you think you're so smart and suck a dick to prepare for prison
Adam Torres
user, you should just stop posting in thus thread.
Nicholas Lewis
Point to which part/s won't work, even though they already do work.
Carter Bennett
why would he go to prison if you mean cancel the card by close the card, wouldn't you need to be able to get an excessive number of new cards i assume you mean transfer back the balance and then wait until the card resets, but i don't know what a bank transfer card is so...
you get the first $10000 CC - what balance are you going to transfer it to? as far as i'm aware you cant put it into a mortgage account.
or am i misinformed about this as well?
you also cant have a positive CC balance either - can you cite me a credit card available on the market that you would use?
explain it to me - the floor is yours
Bentley Robinson
Why?
Something I omitted from my OP: >make the standard mortgage payments, thereby offsetting the funds going from the mortgage back to the BT CCs and keeping the mortgage balance as close to $0 as possible.
Mason Clark
give me an example of a credit card available today that you could use
Jaxson Bailey
>you also cant have a positive CC balance either - can you cite me a credit card available on the market that you would use? Every CC I've ever owned had the ability to go into credit I.e. positive balance. Seriously, are you old enough to be here?
Easton Brooks
be in credit by the full credit amount.
>oh how predicatable to bring age into it when your losing an argument yes i am old enough.
now can you show me a card that you could use or not?
waiting for you to call me a faggot next...
Bentley White
>excessive number of new cards Each closed card only needs to be replaced by a new one with the same BT value (nominally $10K in my example)
Chase Rogers
>now can you show me a card that you could use or not? Literally any Australian bank card: ANZ, Westpac, NAB, ... the list is a long one. The industry standard may differ in your country.
Andrew Brown
What happens when you no longer get accepted? or even more likely your credit limit overall is lower than £100000 and your eventually stuck with no mortgage debt but £100000 in CC debt at 30% PA
Chase Bell
That can never happen. Worst case scenario I.e. not accepted for any new BTs? Pay back all current BTs and be back to paying off the mortgage like a normal person would.
James Campbell
>100% card utilize bomb your credit score. Straight BS. Access 100% and make all payments on time equals credit score through the roof.
Jonathan Jones
Bump, any more takers?
Liam Miller
why can't you just use normal creditcards
Henry Myers
>Set up monthly transfers (redraws) from the mortgage to each of the 10 balance transfer cards. What, like minimum payments? LOL How are you going to stop that CC debt from snowballing to hell?
Justin Martin
yeah it would be hard for the mortgage issuer/credit company to figure out what you're doing since mortgages, balance transfer, and credit card payments are all very difficult to trac-
Isaac Russell
no - you've clearly won your argument
Parker Hall
Truth.
James Parker
This is going to obliterate your credit.
Just to save money on mortgage interest? Think of all the hard inquiries to get a mortgage and 10 credit cards. Then you are going to carry a five figure balance for months and months... this will ruin you.
If you have a 100% utilization rate, that's not good. You want to keep it below 30% per card to keep your credit good.
After a year, with an average utilization rate of 50%, that will decrease your score by 50 points. With ten cards, that's -500 points.
Mason Roberts
You are retarded
Please kys
David Richardson
If that's a true reflection of how credit scores work in burgerland, I pity you anons. Straya is not that retarded; at least not in that respect.
William Lopez
>be OP, new ID due to wi-fi.
David Barnes
>Just to save money on mortgage interest? 5% p.a. on $100K is $5K in savings p.a., not including daily compounding. Hardly chump change, especially if there's no downside.
Ryan Bennett
Either way you are carrying a giant, 5 figure debt for almost a year. No creditor likes that.
The downside is that with a lower credit score, your interest rate on credit cards, loans, mortgages increases. Over your life this could cost you tens of thousands of dollars. And also now you've blown a lot of your opportunities with 0% cards.
Jace Scott
What will actually happen: bank will realize that you're paying your mortgage with credit cards, shit itself, and demand the loan in full
Dominic Davis
>bank will realize that you're paying your mortgage with credit cards Feasible
>shit itself Unlikely
>and demand the loan in full How'd you reach that conclusion without jumping?
Jordan Clark
>The downside is that with a lower credit score, your interest rate on credit cards, loans, mortgages increases. That's not how it works here. Credit scores are improved by full utilisation, if payments are never late. Even if I had a low credit score, it would simply preclude me from accessing certain loan products; lenders don't approve borrowers and then determine rates based on scores.
>And also now you've blown a lot of your opportunities with 0% cards. Card issuers reset a borrower's eligibility clock very quickly here, e.g. within two months of closing a 0% BT card, I have successfully opened a new 0% BT card with the same issuer.
Ryder Wright
>How are you going to stop that CC debt from snowballing to hell?
Look up how interest-free BT periods work. THERE IS NO INTEREST.
>The CC balance on each card starts at -$10K >That +$10K is sitting in the mortgage (a lump sum prepayment) >I pay, let's say 2.5% of the CC balance each month, $250 >The -$10K CC balance reduces by $250 per month >At the end of the BT period (say 10 months), the balance is $10K minus 10x$250 ($2500) leaving $7500 >I pay $7500 from the mortgage to the BT CC and close the BT CC >I open a new BT CC and start again
because paying your mortgage with credit cards is a colossal red flag for the bank and it only gets redder the more you hide it
Justin Martinez
Okay, I'm tired of this bullshit. You fuckers have given me absolutely zero cause for concern in this thread.
Thanks, I guess, for helping me to learn that this particular bunch of Veeky Forumstards don't know what the fuck they're talking about.
cue sage
Asher Cook
your plan is retarded and you are too retarded to see that it is retarded
enjoy fucking yourself up the ass when your second card declines and you have to pay 19.95 APR on the cash advances you took off the third card because you're the dunning kruger effect shaped like a person
Ryder Murphy
When you get a mortgage, it only pays interest off, not principle for 1st years payment amounts. So you have a bunch of interest already lost vs paying cash. Cc will just use paying this as cash advance and charge more interest after that. Just fucking do it so I have more properties to pick up cheap at auction
