Citi Simplicity card with 18 month 0 interest - Page 3 - PeachParts Mercedes-Benz Forum

spdrun · #31 06-02-2013, 10:34 PM

Quote:

Originally Posted by Benzasaurus

I'm at the bottom of my career path right now so I don't have the money for a rental yet. But to be honest even if I did I'd rather put my money in an REIT and spread the risk within the real estate market. I invest 1/3 of my after tax income just into stocks because I have time to be aggressive, so I'll use REITs to protect against inflation when I'm closer to retirement.

REITs are for suckers who want Wall Street scumbucket dirt to pocket 50% or more of their potential rental income. Also, leverage (mortgage/margin) rates are much better (lower) for personally/LLC owned real estate than equities. You're much more likely to cash-flow on a leveraged property investment than on an REIT bought on margin.

Sorry to put it so bluntly, but I tell it like it is. As far as spreading risk, you're trading one point of failure for another -- a market can crash, but a single corrupt and/or stupid business official can doom a company (or fund) to failure. Call it a Nick Leeson moment.

Lastly, don't know about you, but rehabbing property with my own two hands is actually really fun and relaxing for me. Call it a profitable hobby. Clicking on an E*trade account and buying/selling stocks, not so much.

Benzasaurus · #32 06-02-2013, 10:42 PM

Quote:

Originally Posted by frosty

This is what I figured but was't sure because earning just $100 on $10K after 12 months doesn't seem much, but it is sorta like getting free money for letting the bank use yours, so not bad. I currently have x amount in a "preferred savings" account, which essentially earns a bit higher interest than a regular savings. But this MM account is even more than my preferred savings rate. I also have a CD that I rarely ever touch. I'm not rich by any means but I have money saved and I'm just beginning to wise up and make use of money "sitting" around. I'm woefully ignorant of investments and mutual funds, so I want to play it safe and do something that has a garunteed return. Of course, the bigger the return, the better. Specialized savings account through my bank seems to be the safest bet. Most banks have under 1.0% rate for MM or savings. So far my bank is offering this 1% promotion, and it's the highest compared to other big banks I've checked online.

About the 0% APR credit cards. I've played this game before with big purchases, so I know the "fine print." Last year I bought a new bicycle using such a card. I had the money to pay it in cash from the start, but why do it when I can borrow money for free! Got the bike using a nice monthly plan and paid it off before the promotion ended. Did that with a dental plan too. I borrowed money for free and didn't get suckered in using the card for other purchases or fall for the ridiculously low minimum monthly payment. I wouldn't recommend using a 0% card if you couldn't afford the item outright.

I got my Simplicity card and next thing I will do is transfer enough money from my BoFA card to it and then pay off the remaining balance on the BoFA. I do not like seeing that I'm paying around $80 in interest fees. That will go soon!

I like this guy's introductory material in case you're looking for reading. It's got lots of numbers and charts and studies and whatnots.

Benzasaurus · #33 06-02-2013, 10:58 PM

Quote:

Originally Posted by spdrun

REITs are for suckers who want Wall Street scumbucket dirt to pocket 50% or more of their potential rental income. Also, leverage (mortgage/margin) rates are much better (lower) for personally/LLC owned real estate than equities. You're much more likely to cash-flow on a leveraged property investment than on an REIT bought on margin.

Sorry to put it so bluntly, but I tell it like it is. As far as spreading risk, you're trading one point of failure for another -- a market can crash, but a single corrupt and/or stupid business official can doom a company (or fund) to failure. Call it a Nick Leeson moment.

Lastly, don't know about you, but rehabbing property with my own two hands is actually really fun and relaxing for me. Call it a profitable hobby. Clicking on an E*trade account and buying/selling stocks, not so much.

People get to do what they want with their money. I do what I want. Frosty gets to do what he wants. You get to do what you want.

And to clarify: 1) I don't buy any of my investments on margin. 2) I invest in vanguard which is client owned and has low fees. 3) what little money I have in an REIT right now is in an international one, so I think the spread is pretty wide. 4) sure, the global real estate market can crash, which is why I have an equal amount of money in bonds in case of deflation, some in cash and the rest in stocks. I'll be fine.

spdrun · #34 06-02-2013, 11:06 PM

Quote:

Originally Posted by Benzasaurus

People get to do what they want with their money. I do what I want. Frosty gets to do what he wants. You get to do what you want.

And to clarify: 1) I don't buy any of my investments on margin. 2) I invest in vanguard which is client owned and has low fees. 3) what little money I have in an REIT right now is in an international one, so I think the spread is pretty wide. 4) sure, the global real estate market can crash, which is why I have an equal amount of money in bonds in case of deflation, some in cash and the rest in stocks. I'll be fine.

Again, I wouldn't lose sleep about the global market crashing. I'd lose sleep over one of the people running the REIT being a thieving or incompetent dirtbag. (And yes, it can often be one person who's responsible for killing a publicly traded entity.)

As far as margin, you can buy real estate with all cash, if you can afford it. But you can also "buy on margin" aka getting a mortgage, and realize positive cash-flow in a lot of areas. Positive cash-flow even if rents decline by 25 or 30%, I may add.

Skid Row Joe · #35 06-03-2013, 12:59 AM

You guys playing around with revolving loans/unpaid credit card balances through a bank are gonna keep gettin' snakebit.

Bad enough having a credit card with one where you pay their balance in full each and every month. They'll still get to you every few years.

If you're paying 16% to 32%+ annually, somethin's done broke in your life financially. Open loans and owing money costing 16% to 32%++ per annum? -that be bad......

barry12345 · #36 06-04-2013, 12:31 AM

I do not have time for it but buying and selling can give you a really good return once you get familiar with it. I have always thought that if substantial returns are wanted you have to personally work with your money.

The fourteen year old I deal with a lot went out to some yard sales with me last Saturday. He purchased several electronic devices. Resold them by Monday on some vendor sites.

Cost him maybe twenty five dollars and he netted a couple of hundred. He may or may not duplicate this next Saturday. Depending if what he feels if available and easily re saleable is out there.

He is in school and has no part time job in a conventional manner yet always seems to have lots of money. Trading and selling enables this primarily. He seems to deal in high demand items for his generation to make resale of them easy. Return on investment for him of course is off the charts if you tried to calculate it over the full year. If he can compound say five dollars into what he does and what it becomes over a year. What the majority of us grown ups are doing is peanuts in comparison.

spdrun · #37 06-04-2013, 12:51 AM

Singer sewing machine. Bought in NJ for $10. Motor brushes freed up. Resold to hipstah girl in Brooklyn for $200, bay-bee!

Skippy · #38 06-04-2013, 01:12 AM

Quote:

Originally Posted by Skid Row Joe

You guys playing around with revolving loans/unpaid credit card balances through a bank are gonna keep gettin' snakebit.

Bad enough having a credit card with one where you pay their balance in full each and every month. They'll still get to you every few years.

I have a credit card and pay it off in full every month. I pay no interest fees, it's safer than a debit card, and they have a reward program. I'm over 20,000 points, so I think it may be time to look at what I can redeem them for. I use it for the exact same stuff I used my debit card for: Fuel, groceries, and car/bike parts mostly. How will they get to me in a few years?

Quote:

If you're paying 16% to 32%+ annually, somethin's done broke in your life financially. Open loans and owing money costing 16% to 32%++ per annum? -that be bad......

If you think that's bad, try looking at payday loans. Junior military personnel got in so much trouble with them that Congress made some changes to lending law that make it essentially illegal to make out a payday loan to an active member of the military.

E150GT · #39 06-04-2013, 08:19 AM

Quote:

Originally Posted by TheDon

I just to my first and only cc from m credit union. It's for $500 and it's only getting used for diesel fuel and paid off monthly. The guy at the credit union said to leave a balance on it evey month because I will look good in my credit, no it won't, you just want me o give th credit union my hard earned money.

Just because it reports a balance does not make it accrue interest. A non reporting credit card will actually not factor in your CC for a FICO standpoint after so many months so its in fact true, it will not help your credit if it doesnt report a balance at least every once in a while.

Hatterasguy · #40 06-04-2013, 09:57 PM

If your playing the balance transfer game your spending to much. Adjust your habits and dump the Bank of America card.

They are scumbags and I wish we let them go bankrupt.

Discover has been treating me very well, no foreign transaction fees to which are nice when you travel.

Amex is nice but almost no one takes it overseas unless your in a first world country.

ps2cho · #41 06-04-2013, 11:46 PM

Quote:

Originally Posted by E150GT

Just because it reports a balance does not make it accrue interest. A non reporting credit card will actually not factor in your CC for a FICO standpoint after so many months so its in fact true, it will not help your credit if it doesnt report a balance at least every once in a while.

I analyze consumer credit reports at my job. The cards report to the bureau's different codes for an inactive month and a month with a zero balance (0 versus C for what its worth -- inactive/no usage and current respectively they usually report it like so: ccc00c00cccc0ccc etc...) Use the card, pay it off. Carrying a balance to increase your score is a myth and I have noticed no correlation between them either from an experience perspective.

frosty · #42 06-05-2013, 02:38 AM

Quote:

Originally Posted by Hatterasguy

If your playing the balance transfer game your spending to much. Adjust your habits and dump the Bank of America card.

They are scumbags and I wish we let them go bankrupt.

Discover has been treating me very well, no foreign transaction fees to which are nice when you travel.

Amex is nice but almost no one takes it overseas unless your in a first world country.

I hardly use my BoFA card these days and don't use my Citi card much either. The debts on these cards were accrued back when I thought it was "convenient." Perhaps I'm fortunate that I'm not much of an impulse buyer and for the most part am pretty conservative with my spending, so my combined debt isn't astronomical and can be paid off now if I wanted to. The thing is that I'm not too keen on getting a big chunk out of my checking--I like seeing a big balance in my monthly statement. But I suppose the smart thing is to pay off the debt in one swell swoop and be done. I would be saving around $160 monthly in interests that I'm paying to both banks. My plan is to make bigger monthly payments.

This is my first time to transfer a balance, BoFA and City have been sending me junk mail with "blank checks" to transfer money with 0% interest for x months. I think with this Simplicity card I may as well give it a go, but it's something I've put some thought in first. I intend to make this work and save some money. Soon I just want my paycheck to go to rent, bills, student loan (which has a consistent monthly payment), and have more go to my checking/savings.

barry12345 · #43 06-05-2013, 07:19 AM

Quote:

Originally Posted by frosty

I hardly use my BoFA card these days and don't use my Citi card much either. The debts on these cards were accrued back when I thought it was "convenient." Perhaps I'm fortunate that I'm not much of an impulse buyer and for the most part am pretty conservative with my spending, so my combined debt isn't astronomical and can be paid off now if I wanted to. The thing is that I'm not too keen on getting a big chunk out of my checking--I like seeing a big balance in my monthly statement. But I suppose the smart thing is to pay off the debt in one swell swoop and be done. I would be saving around $160 monthly in interests that I'm paying to both banks. My plan is to make bigger monthly payments.

This is my first time to transfer a balance, BoFA and City have been sending me junk mail with "blank checks" to transfer money with 0% interest for x months. I think with this Simplicity card I may as well give it a go, but it's something I've put some thought in first. I intend to make this work and save some money. Soon I just want my paycheck to go to rent, bills, student loan (which has a consistent monthly payment), and have more go to my checking/savings.

If you are in a position to get rid of 160.00 a month in interest payments or almost two thousand a year interest. Get rid of it as your retaining a larger balance in your bank account may feel good but is counter productive and costing you. Take the interest free money and toss that into your bank account if it makes you feel good. Accumulate the 160.00 a month interest savings as that is yours if you wish. Right now you are tossing it away.

You could borrow money later if those funds where required then. For the interm period between you are paying yourself the160.00 a month. Remember for the average person income tax also increases the percentage of your income going to that interest payment.

This credit rating thing may be a bit of a scam. I had to finance a one year old car to get it out of a dealership not long ago as they will not do a cash sale.

I did not think I had a credit rating any more of any sort.. There was no issue as wherever they checked came back really solid. Paid the loan out as soon as the paperwork showed up.

Technically you should not feel that good about the money in your bank account anyways. It is money that is already owed by you or at least the portion of it that would cover your debt.

E150GT · #44 06-05-2013, 08:21 AM

Quote:

Originally Posted by ps2cho

I analyze consumer credit reports at my job. The cards report to the bureau's different codes for an inactive month and a month with a zero balance (0 versus C for what its worth -- inactive/no usage and current respectively they usually report it like so: ccc00c00cccc0ccc etc...) Use the card, pay it off. Carrying a balance to increase your score is a myth and I have noticed no correlation between them either from an experience perspective.

right but there is a difference between carrying a balance and letting a balance report. Many people think they have to pay interest to get a better FICO score or if they let a balance report. From what I have learned recently the best score comes from letting all cards report a zero balance except one that reports anywhere from 1-9% utilization.

barry12345 · #45 06-05-2013, 10:59 AM

Quote:

Originally Posted by E150GT

right but there is a difference between carrying a balance and letting a balance report. Many people think they have to pay interest to get a better FICO score or if they let a balance report. From what I have learned recently the best score comes from letting all cards report a zero balance except one that reports anywhere from 1-9% utilization.

Makes sense as it is an indicator the person is probably financially under control. .Too many people are right on the edge financially. Something unexpected pops up and they can no longer cope financially.

One should try to allow for the unexpected when possible. Even at age seventy as I am there are just so many viariable possibilities that could still change things.

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