Profit from the Credit Card System
- Thread starter papajohn56
- Start date
elitesystem
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Yeah pretty cool stuff, I made pretty good money off of arbitraging 0% credit cards. You're a little late to the party though the days of easy credit and easy money to be made off credit are pretty well dead. There are still occasional deals that come through but nothing like things were 3-4 years ago.
Interesting read but the methods they are talking about are going to be a bitch to actually pull off and the slightest mistake will ruin your credit forever. Not to mention the days of high yield savings are long gone.
i'll take my 800+ fico over some money made from all that work.
constantly opening new cards, despite what some may say, does NOT 'not affect' your credit score.
constantly opening new cards, despite what some may say, does NOT 'not affect' your credit score.
That guy ripped off SIS's and the rest of the FatWallet Finance forums' work for his gain. Moreover the technique relies on availability of cheap and easy credit, which really isn't available any more, unlike in 2006 when the original thread was posted.
No but many of the methods may be applicable in countries with large amounts of readily available consumer credit.
The version of the method described depends on a FICO or similar credit scoring model, easy credit and decent returns from high yield savings accounts (or other secure investments). The main weaknesses in the current credit system is the delay between credit approval and when accounts show up, and the ability to remove inquiries from your credit report by repeatedly doing soft credit pulls on yourself. It takes 80-100 soft inquires to push a hard one off but they are ordered by date so if you have 20 hards ~100 softs will remove most or all of them.
The guy that wrote that paper got several things wrong, but the major inaccuracy is he thinks that credit applications are grouped to hide hard inquires when they were actually grouped to hide new accounts.
The methods still work but are much much less profitable than they used to be and are no longer worthwhile for me to do.
Yeah it does affect your score, longterm your score goes up as long as you don't fuck anything up. More available credit + more aged accounts = nearly perfect FICO.
The real risk is adverse action against accounts you want to keep open for one reason or another. Many banks are pretty skittish and there are many many stories of people that have had all of their accounts with a given bank closed because of to many new accounts or high revolving balances even though they had the cash to pay them off.
