Consequences of Maxing Out a 0% APR Card

[Anonymous]

Other than the credit score hit you'll take due to higher utilization, is there any reason NOT to keep rolling the balance on a 0% APR credit card and parking the cash in a savings account/money market?

Background info: I got my Freedom card with 15 months 0% APR earlier this month and have put about $5k on it already. Its $15k CL should be maxed out within the next 30 days. I have autopay setup to only make the minimum payment. I also have a CSP that I run about $2k in dining charges through per month, which I PIF. My biggest concern would be Chase lowering the CL on either card.

[chris2k5]

Maxing out the card might make Chase flag your account as high risk. Doesn't happen too often though from what I can see.

I did the same thing with my Discover card that has 0% APR. I took the $2000 and bought some stocks. Once the APR dies off, I will sell the stocks and pay in full.

[john398]

---

@chris2k5 wrote:

Maxing out the card might make Chase flag your account as high risk. Doesn't happen too often though from what I can see.

I did the same thing with my Discover card that has 0% APR. I took the $2000 and bought some stocks. Once the APR dies off, I will sell the stocks and pay in full.

---

How do you buy stocks with a credit card? That does sound like a gamble too

[Anonymous]

---

@john398 wrote:

---

@chris2k5 wrote:

Maxing out the card might make Chase flag your account as high risk. Doesn't happen too often though from what I can see.

I did the same thing with my Discover card that has 0% APR. I took the $2000 and bought some stocks. Once the APR dies off, I will sell the stocks and pay in full.

---

How do you buy stocks with a credit card? That does sound like a gamble too

---

I think he's saying instead of using that $2k cash to pay off his CC, he buys stock. Yes, it's risky. I would only use something with 100% principal protection, but some people have a higher risk tolerance.

[Anonymous]

I personally wouldn't put any 0% apr into anything that isn't FDIC insured (high yield checking accounts and cds) which don't exist anymore.  I was thinking if rates ever went to 5-6% again I could use the square credit card reader for iphone and put money into my bank account.  It costs 2.75% of the transfer but you could still net money if rates are high enough.

[john398]

---

@Anonymous wrote:

---

@john398 wrote:

---

@chris2k5 wrote:

Maxing out the card might make Chase flag your account as high risk. Doesn't happen too often though from what I can see.

I did the same thing with my Discover card that has 0% APR. I took the $2000 and bought some stocks. Once the APR dies off, I will sell the stocks and pay in full.

---

How do you buy stocks with a credit card? That does sound like a gamble too

---

I think he's saying instead of using that $2k cash to pay off his CC, he buys stock. Yes, it's risky. I would only use something with 100% principal protection, but some people have a higher risk tolerance.

---

Oh ok I get it well maybe he will get lucky

[Anonymous]

---

@Anonymous wrote:

I personally wouldn't put any 0% apr into anything that isn't FDIC insured (high yield checking accounts and cds) which don't exist anymore.  I was thinking if rates ever went to 5-6% again I could use the square credit card reader for iphone and put money into my bank account.  It costs 2.75% of the transfer but you could still net money if rates are high enough.

---

You can still find 1% savings accounts if you look hard enough, which would get you $150 per year with my CL.