Hello to all,
Just a quick question for those in the know?
Could anyone advise on the benefits of paying your mortgage with your credit card..?
The sonario is this-Line of credit mortgage in the $400s.. intrest rate 5.20%
A $20k credit card with 55 days intrest free….
Pay the CC $20k on the mortgage…
Take the CC money back out just before the due date of the intrest free period and pay off credit card….
Saving the interest that the $20k deducts for the 7 weeks whilt being on the mortgage…
Then repeat cycle…Im racking my brain to see a down side to this. If any one can see a flaw in my cunning plan i would be greatly appreciative of the feed back..
Thank you in advance…..
Regards Jef..Hi Jef,
I think “Pay the CC $20k on the mortgage…” will be considered as Cash Advance and you will be paying around 20% interest for it.
And what Pete is saying, is that this 20% applies from day 1 – there is no 55 day interest free on a cash advance (to my knowledge)
Hi guys,
Thanks for replying…
As always, if its too good to be true….!!! lol.
I actually typed it all in, to see what would happen before i hit the PAY button and yes just as you said, a little box came up saying “This will be treated as a cash advance and you will be bent over the bonnet to to the tune of 1000 % ”
Or at least thats how i read it !!….Again, thank you for your replies..
Regards
JefHa ha ha. Exactly. I remember having the same idea as a youngster. I figured I could get a free cash injection by using one credit card to pay the other for eternity.
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