Personal Finance

What Are You Doing With Your MBNA 0% Money ??

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  • Sep 17th, 2014 2:24 pm
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Feb 28, 2003
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gogoblender wrote:
Sep 13th, 2014 9:21 pm
Bought Canadian big bank dividend stock two years running
Can we get more elaboration for the non investors ? Which bank? How much profit was made? And the profit is from the dividends alone? Or a combination of stocks rising and the dividend?
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ELiTE KiLLaH wrote:
Sep 14th, 2014 2:38 am
Can we get more elaboration for the non investors ? Which bank? How much profit was made? And the profit is from the dividends alone? Or a combination of stocks rising and the dividend?
If you're asking with the intent of making this strategy your own, with this kind of question.. perhaps investing is not for you.. If you're asking just because you're curious about gogoblender's personal gains, then that's okay (but this is the internet).

It's a pretty obvious that the market as a general whole has been on an upwards trend since 2009 with a particularly fast climb these past two years. The Canadian banks have also been on a steady rise since 2012, each with an almost identical graph. If you just bought and held since then, you'd be treated with more than 50% increase in your principal along with steadily growing dividend payouts.

All that can be said now? Past performance is not indicative of future results
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ELiTE KiLLaH wrote:
Sep 12th, 2014 11:31 pm
What are you guys doing with the 0% or 0.99% money that you are getting from MBNA platinum plus?

There's random discussion in the big thread but I thought maybe make a dedicated thread?
invested mine.

good thing u did else i will move/delete your post if you made it in the big 0/12 thread.
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Feb 26, 2008
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lovefreemoney wrote:
Sep 13th, 2014 11:48 pm
Hard to believe people actually go through the trouble to make a lousy $200. You add an inquiry to your file, a new account that decreases your average age, and max it right away killing your credit score for an entire year to profit $200??? I don't get it.
Different people are in different personal financial situations. Some people reasonably anticipate the need to borrow money over the next 12 months, perhaps because they plan to buy a house, while others are virtually certain that they'll have no need to borrow money in the near future.

If you are in the category of people who are virtually certain that there'll be no need to borrow money, then your credit score is immaterial. For people in this category, it can be quite rational to take the cash advance at 1% cost and invest it in a risk-free investment at something higher than 1%. If you can find a good risk-free investment and if MBNA gives you a large enough credit limit, the whole process can be quite lucrative and only requires perhaps 1 hour of administrative work from you. Personally, I'm quite happy to earn hundreds of dollars for an hour of hassle.
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kneevase wrote:
Sep 14th, 2014 9:41 am
Different people are in different personal financial situations. Some people reasonably anticipate the need to borrow money over the next 12 months, perhaps because they plan to buy a house, while others are virtually certain that they'll have no need to borrow money in the near future.

If you are in the category of people who are virtually certain that there'll be no need to borrow money, then your credit score is immaterial. For people in this category, it can be quite rational to take the cash advance at 1% cost and invest it in a risk-free investment at something higher than 1%. If you can find a good risk-free investment and if MBNA gives you a large enough credit limit, the whole process can be quite lucrative and only requires perhaps 1 hour of administrative work from you. Personally, I'm quite happy to earn hundreds of dollars for an hour of hassle.
There are regular credit card deals out there that will give you more than $200 profit for signing up, for example the Capital One Aspire Travel will net you $350 in points - $120 annual fee + $75 GCR sign up bonus = $305 right off the bat for travel, or $217.50 when used as cash back, and that doesn't even require you to use up your TFSA contribution room, which means you can invest that and earn 3% at the same time there. And all this requires much less administrative work, and still only requires one hard credit check.
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Jon Lai wrote:
Sep 14th, 2014 9:52 am
There are regular credit card deals out there that will give you more than $200 profit for signing up, for example the Capital One Aspire Travel will net you $350 in points - $120 annual fee + $75 GCR sign up bonus = $305 right off the bat for travel, or $217.50 when used as cash back, and that doesn't even require you to use up your TFSA contribution room, which means you can invest that and earn 3% at the same time there. And all this requires much less administrative work, and still only requires one hard credit check.

Yep, I exploit those offers too! Easy money! Just keep churning through the cards... :lol:

With the MBNA advance, the truly interesting opportunity comes when they give you a healthy credit limit. I've been given $27,500 on my last card, which is a nice base if you can find a risk-free investment that earns you 2% or 3% vig. Over the last few years it's been tough to find that kind of vig, but the promotional interest rate offers that we've seen lately from PC Financial and Tangerine have been encouraging....
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Sep 10, 2014
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nnelly wrote:
Sep 14th, 2014 1:06 am
Says the guy with the username "lovefreemoney"
Haha good point :lol:
But in my case I refer to free money through points and cash back credit cards. In the past 12 months I've made over $600 from my CT World Mastercard. And that's just one cards usage under normal spending conditions and bill payments. No need to borrow 10k to make a third of that.
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Oct 7, 2012
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ELiTE KiLLaH wrote:
Sep 14th, 2014 2:38 am
Can we get more elaboration for the non investors ? Which bank? How much profit was made? And the profit is from the dividends alone? Or a combination of stocks rising and the dividend?
Red Flag deals forum helped me out two years ago when I first started here

http://forums.redflagdeals.com/big-5-ba ... s-1249247/
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lhsonic wrote:
Sep 14th, 2014 5:06 am
If you're asking with the intent of making this strategy your own, with this kind of question.. perhaps investing is not for you.. If you're asking just because you're curious about gogoblender's personal gains, then that's okay (but this is the internet).

It's a pretty obvious that the market as a general whole has been on an upwards trend since 2009 with a particularly fast climb these past two years. The Canadian banks have also been on a steady rise since 2012, each with an almost identical graph. If you just bought and held since then, you'd be treated with more than 50% increase in your principal along with steadily growing dividend payouts.
yah, last two years big banks been great
lhsonic wrote:
Sep 14th, 2014 5:06 am

All that can be said now? Past performance is not indicative of future results
I do worry sometimes, but try not to look...it's for a year,
pretty sure ill at least beat out any bank account over a year
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Sep 10, 2014
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kneevase wrote:
Sep 14th, 2014 9:41 am
Different people are in different personal financial situations. Some people reasonably anticipate the need to borrow money over the next 12 months, perhaps because they plan to buy a house, while others are virtually certain that they'll have no need to borrow money in the near future.

If you are in the category of people who are virtually certain that there'll be no need to borrow money, then your credit score is immaterial. For people in this category, it can be quite rational to take the cash advance at 1% cost and invest it in a risk-free investment at something higher than 1%. If you can find a good risk-free investment and if MBNA gives you a large enough credit limit, the whole process can be quite lucrative and only requires perhaps 1 hour of administrative work from you. Personally, I'm quite happy to earn hundreds of dollars for an hour of hassle.
Whatever floats your boat I guess. I just think making $200 over a year is a waste of effort. Now $1000 or more, I'd be in.
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lovefreemoney wrote:
Sep 14th, 2014 11:00 am
Whatever floats your boat I guess. I just think making $200 over a year is a waste of effort. Now $1000 or more, I'd be in.
Don't you think you are being a little irrational? I'm pretty sure that you voluntarily choose to go to work every week and I'm pretty sure that you earn much less than $200 per hour at your job. So, your revealed preference is that your time is worth far less than $200 per hour. So, shouldn't it be a worthwhile exercise to exploit these sorts of credit card offer, unless there is some aspect of the activity that you find unpleasant or distasteful?
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kneevase wrote:
Sep 14th, 2014 11:34 am
Don't you think you are being a little irrational? I'm pretty sure that you voluntarily choose to go to work every week and I'm pretty sure that you earn much less than $200 per hour at your job. So, your revealed preference is that your time is worth far less than $200 per hour. So, shouldn't it be a worthwhile exercise to exploit these sorts of credit card offer, unless there is some aspect of the activity that you find unpleasant or distasteful?
Well, in my response, I already indicated that for less than an hour of your time, and the same sacrifice (hard check), you can net more than just $200, so doing it via the advance is a bad idea, IMO. The main benefits of getting this card is for things where you absolutely need cash and not rewards, ie. downpayment or to invest on margin.
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Jon Lai wrote:
Sep 14th, 2014 12:55 pm
Well, in my response, I already indicated that for less than an hour of your time, and the same sacrifice (hard check), you can net more than just $200, so doing it via the advance is a bad idea, IMO. The main benefits of getting this card is for things where you absolutely need cash and not rewards, ie. downpayment or to invest on margin.

I guess you did't read the post where I suggested that you can sign-up for both cards with sign-up incentives *AND* cards with promotional cash advance rates. The fact that one card is more lucrative than another doesn't mean that you cannot exploit both the good and the better! :facepalm:
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Mar 29, 2017
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Jon Lai wrote:
Sep 14th, 2014 12:55 pm
The main benefits of getting this card is for things where you absolutely need cash and not rewards, ie. downpayment or to invest on margin.
Yes, invest on margin with borrowed money. Why not just skip playing daytrader and just throw it all on black instead?
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Sep 10, 2009
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ELiTE KiLLaH wrote:
Sep 12th, 2014 11:31 pm
What are you guys doing with the 0% or 0.99% money that you are getting from MBNA platinum plus?
I bought a car.
Not only the interest rate was lower, but the dealership gave me a very significant discount since I paid cash.

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