The importance of paying your app o rama credit card arbitrage bills on time.
One late payment will put a big dent in your credit report. It shows creditors that you are not a careful individual, too lazy to pay your bills on time or just a deadbeat! In return they will drop your score by at least a few dozen points. Make sure you set up an auto pay system on the online site of your credit card issuer. Every issuer has an online site where you can pay bills, with the exception of CitiBank credit card site all of them will allow you to auto pay, or schedule your bank account to automatically be debited for either the minimum amount due or the full balance. This way you will never fail to make a payment and your rates will not be jacked up from the 0% apr you have now to a crazy 20% or so if you miss a payment by a few days or hours.
Be careful guys~
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What I wonder is if it’s possible to do something like the app-o-rama, but simply on a smaller scale, a way for a college student to make a bit of cash on the side. This scheme seems to work, but requires regular interest payments. This might be useful for seed money, or for simply getting some beer money on the side.
The concept is this:
1. Get a single card with a relatively high limit.
2. Purchase a short term CD with a term less one month.
3. During each month, using the max on the card to purchase the CD, and then pay it back at the end of the month, pocketing the remaining interest.
Would something like this be feasible? It wouldn’t make a huge amount, ideally maybe 1 or 2 hundred a month. Still, free money’s free money.