Quote from: «ě» on May 26, 2007, 09:06:26 PMDoes income, savings etc affect your creditscore, or is it simply about paying on time or not?Savings, no. Income, yes.Paying on time for a long time trumps both of the above. By a lot.
Does income, savings etc affect your creditscore, or is it simply about paying on time or not?
The technique waitlist is describing is called credit card arbitrage, you should be able to find lots of information about it under that. It does hit your credit score, to a small degree, if you do it the correct way, but it is manageable. It is generally better to do it though when you can get multiple high limit credit cards. It involves using multiple 0% interest CC's, nearly maxing them out (don't max them), putting the money into 6% high interest earning bank accounts (do not invest the money in something volatile), making the minimum monthly payments and then paying the balance in full before the 0% offer ends (you need to know exactly when it ends).BUT, there are major pitfalls to it, so you have to really know what you are doing or you will not only lose all the money you gain or can potentially gain from doing it, but your credit score also takes a pretty major hit.This is all made possible by people like the OP, its a bit scary to think about it, but the majority of people in this country have no idea how to use CCs.
you're right. it's not in the FICO.but it is considered by virtually all lenders. savings generally aren't.
That is debatable
That is your credit worthyness, not your score.Also, they do care where the money comes from. I have to give a resounding it depends on what loan programs require, but for the most part, outside of conventional A-paper lending, it does matter where the money comes from. That is why you have to have 2 months bank statements on many loan types so the funds are seasoned. For example, with FHA loans, it has to be your money. There are numerous stipulations on gifting funds with loans.Granted there are the exceptions such as NINAs (No Income No Asset) and also high levels of approval through fannie mae and freddie mac underwriting systems that require no assets to be verified.I wouldn't be so fast to throw the title of financial guru at someone who is playing a balancing act with credit cards. It is going to ding your score because you are getting inquiries and new lines of credit. Credit score aside, I would think it is a decent idea to avoid the high interest.I really hope whoever is doing this will put off law school until they get all of their credit card debt paid off.