ThisIs_MyName

Not that I know of. The cheapest loans I have got:

• 0% cards for 1-2 years
• MS at statement-start; Use floated money; Pay card 1-2 months later

I invest about 10% of my credit limit in index funds and also get points every time I MS. If you value points, Credit cards effectively have a negative interest rate.

Technically correct, but I'm curious: Why would anyone ever get a non-rewards card? The only advantage I see is the lower interest rate (8%) when you carry a balance. However this interest rate is higher than than the 0% that *all* credit cards provide during the grace period.

46sky

I think they get low interest rates because they don't qualify for the 0% intro cards?

In terms of investing 10% of your CL into Index funds -- have you ever gotten caught in the headlights when the stock portfolio did not grow? Do fees eat up returns when you are only putting the money in for a brief period?

Pryde987

I view Flyertalk more like: Neocon psychopath baby boomers -> ... well... the children of neocon psycophath baby boomers who are equally selfish and also completely lack perspective

Edit: I do actually think it's silly to suggest people use MS instead of payday lending as the reason people do payday lending is because they're left out of the normal bank system and cycle. It's clever, but the OP has no idea how the indigent actually live.

ThisIs_MyName

Possible. Just to be clear, when I said "grace period" I meant the time between the day the transaction posts and the day payment is due. All credit cards have a grace period so even if you don't have a 0%-intro card, you can get a series of 1-2 month interest-free loans (as long as you have access to an MS method). The only advantage of a 0%-intro card is that you don't have to constantly make the card pay itself.

No, the money I invest can be carried entirely on my 0% cards. So even if I am hit with the worst S&P500 historical loss (40%) and I lose my MS methods, I'll still have a few years to pay up. Or more likely, I will apply for more 0% cards by then and keep refinancing. Or more accurately, I'll keep debt pyramiding

I use Schwab's commission-free funds for all short term investments. If I have to sell them, my only "fee" is the 1-cent spread per share. This usually comes to $0.01/$50= 0.02%. Compared to the expected 9% annual returns, the spread is pretty negligible.

BeyondtheWrap

Both my mother and my brother use credit cards a lot. Not necessarily for rewards, but because they don't have enough money to buy stuff without credit cards. They typically only pay the minimums on everything. The reason to get a non-rewards card is that it's another card to have, therefore you have access to more credit. It might not be the best card, but if you get a pre-selected offer, might as well get the card.

HouFly

yep, agreed and pretty clear cut.

I was talking about non-CB rewards cards. tho I suppose miles and points can many a times be converted to cash even if not at a 1% rate.