credit card arbitrage and credit ratings. uk only.?
If I transfer 3 credit card maximum amounts at 0% for 15 months to my hsbc credit card then move this money into a bank and use it as a deposit for an investment which will mature in a year and then pay all the credit cards back will this badly affect my credit rating. any website phone no i can call to discuss this?
Public Comments
- No (but it depends, so keep reading!). Actually, it will improve your credit rating. If you do not miss any of the repayments, there will only be a positive effect on your credit rating. Your credit rating does not deteriorate if you carry out such credit transactions, even if it looks like you're taking the credit companies for a ride. However, if you start missing payments, your credit rating will start to get worse. Even if you miss a handful of payments, it will have a noticeable negative effect. As long as you don't though, it'll just get better as you'll have demonstrated "mature credit behaviour" (by not missing any repayments whilst carrying out many transactions). You can find out more and call someone at: http://www.experian.co.uk/
- I know someone who tried to do this and the bank would not wait for the investment to pay out - eventually he had to declare himself bankrupt. Nice thought though, if you can get away with it
- i dont understand where the money is coming from you transfer 3 maximum amounts at 0%, but they are only balance transfers so you are paying peter with money from paul. you now owe it to paul. whether you owe it to peter or paul it certainly isnt in your hand.
