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Originally Posted by Zinke Do not screw your credit up, that's a lesson that many people my age (college) never learn. I barely learned it, I'm in some debt, but didn't screw up my credit. My mom has such good credit that some of her cards will give her loan for 0% for the life of the loan, upwards of 5 grand. When she found that out, she maxxed one of the cards for a few grand and put it into a savings account for a year. Made the minimum payments on it to keep the 0% going. The % from the savings account is pure profit for her.
Credit card companies do that because she's considered zero risk, so they end up getting lower loan rates from THEIR lenders by borrowing larger sums. She's the type of person who helps them get lower rates, so they make money on the other people. |
Story sounds good, until you talk about your mother putting investments in a savings account.
That is about the worst thing you can do except for actually getting a negative return on your investment. Savings Account return < Rate of Inflation.
