5 ms·

I try to keep myself in as much 0% APR debt as possible, almost at 100K. It’s all on business cards that don’t report to credit bureaus so it doesn’t impact my

I try to keep myself in as much 0% APR debt as possible, almost at 100K. It’s all on business cards that don’t report to credit bureaus so it doesn’t impact my credit utilization. Instead of balance transfers (which have a 3% fee and a low limit) I put my quarterly taxes on my CC, which you can pay for 1.8%.

MuffinFlavored 7y ago
Could you elaborate on this? If I started a business (LLC), I could open an AmEx card card under the business and have access to a 0% line of credit? That doesn't sound quite right. I'm surely missing something.
- xur17 7y ago
  You can open business credit cards directly under your name, no LLC required.
- wefarrell 7y ago
  The card is still under your name, the application will pull your credit report, and you're personally liable for the debt. However most major banks (with some exceptions) do not report business cards to the credit bureaus unless you're in default, so it's possible to carry large balances without any impact to your credit.
  - MuffinFlavored 7y ago
    When is the statement balance due? Every 30 days? I don't see how this is 0% APR/any different than a consumer credit card?
    - wefarrell 7y ago
      The statement balance is never due but I always make sure to pay it off before the 0% APR ends. Each month a small minimum balance (around 1%) is due.
C1sc0cat 7y ago
You have 100k in debt in your name wow as they say that's a "brave choice"
- wefarrell 7y ago
  It's substantially less risky than having a mortgage on a home.
  - driverdan 7y ago
    I downvoted you because this is not true. 0% offers end with the interest rate spiking. Mortgages have extremely low rates right now. All you'd have to do is carry that 0% offer past its expiration for a short time to make up the cost difference.
    - wefarrell 7y ago
      It's absolutely less risky for a number of reasons: 1. If I default on my credit card debt it will screw up my credit but the banks can't come after any of my assets. If you default on a mortgage it will screw up your credit and the bank will take your home. 2. I am free to take on the level of risk that I'm comfortable with, including risk free options such as treasuries or CDs. With a mortgage you are locked in. 3. I am free to mitigate my risk by diversifying across asset classes. I can put some money in gold, some in real estate, some in Japanese equities, etc... With a mortgage you are leveraging a huge chunk of money and concentrating it in a single undiversified holding. If a disaster strikes and the insurance company doesn't cover it your wealth is wiped out. If property values decline and you need to move you're wiped out. By every measure owning a home is riskier.
      - C1sc0cat 7y ago
        Your buying stocks/security on credit ! wow I have well over $100k in stocks etc and I have no leverage on that Note (some of the investment trusts stock in own do )

MuffinFlavored 7y ago

Could you elaborate on this? If I started a business (LLC), I could open an AmEx card card under the business and have access to a 0% line of credit? That doesn't sound quite right. I'm surely missing something.

xur17 7y ago
You can open business credit cards directly under your name, no LLC required.
wefarrell 7y ago
The card is still under your name, the application will pull your credit report, and you're personally liable for the debt. However most major banks (with some exceptions) do not report business cards to the credit bureaus unless you're in default, so it's possible to carry large balances without any impact to your credit.
- MuffinFlavored 7y ago
  When is the statement balance due? Every 30 days? I don't see how this is 0% APR/any different than a consumer credit card?
  - wefarrell 7y ago
    The statement balance is never due but I always make sure to pay it off before the 0% APR ends. Each month a small minimum balance (around 1%) is due.

C1sc0cat 7y ago

You have 100k in debt in your name wow as they say that's a "brave choice"

wefarrell 7y ago
It's substantially less risky than having a mortgage on a home.
- driverdan 7y ago
  I downvoted you because this is not true. 0% offers end with the interest rate spiking. Mortgages have extremely low rates right now. All you'd have to do is carry that 0% offer past its expiration for a short time to make up the cost difference.
  - wefarrell 7y ago
    It's absolutely less risky for a number of reasons: 1. If I default on my credit card debt it will screw up my credit but the banks can't come after any of my assets. If you default on a mortgage it will screw up your credit and the bank will take your home. 2. I am free to take on the level of risk that I'm comfortable with, including risk free options such as treasuries or CDs. With a mortgage you are locked in. 3. I am free to mitigate my risk by diversifying across asset classes. I can put some money in gold, some in real estate, some in Japanese equities, etc... With a mortgage you are leveraging a huge chunk of money and concentrating it in a single undiversified holding. If a disaster strikes and the insurance company doesn't cover it your wealth is wiped out. If property values decline and you need to move you're wiped out. By every measure owning a home is riskier.
    - C1sc0cat 7y ago
      Your buying stocks/security on credit ! wow I have well over $100k in stocks etc and I have no leverage on that Note (some of the investment trusts stock in own do )