The Lure and Dread of the App-O-Rama
So, in my recent excursions around the intarweb, I stumbled upon a moneymaking scheme known as the "app-o-rama" which has me somewhat intrigued. If you haven't heard of it, these are basically the steps:
1) Apply for several dozen credit cards all at once, picking ones with good bonuses and cashback, and most importantly including several that have 0% Balance Transfer for 12 mos. (and ideally very little transfer fee).
2) When all the cards come in, take out as much as you can in Balance Transfers from the 0% cards.
3) Take this money and put it in a 5% or 6% savings account for 11 months, then pay the cards back and keep the interest.
Obviously there are a lot more details, and while not illegal, this is certainly not encouraged by the CC companies, so you have to pay close attention to minimum monthly payments and other letter-of-the-law stuff. But if you're willing to put up with all the hassle and CSR-wrangling, and you're willing to have your credit score go down the crapper for a few months (it eventually comes back), you can actually make pretty good money -- $50K at 5.5% is nothing to sneeze at, interest-wise.
But, to me it seems like too much hassle, and I absolutely HATE haggling, which is a lot of what this is (calling the cards and asking for higher limits, to waive the BT fees, etc.). Also, as a stay-at-home dad with a personal income of <10K/yr, I suspect I wouldn't get enough credit to make it worth my while.
If anyone else wants to try it, though, let me know how it goes! There is no shortage of websites to tell you how to do it.
1) Apply for several dozen credit cards all at once, picking ones with good bonuses and cashback, and most importantly including several that have 0% Balance Transfer for 12 mos. (and ideally very little transfer fee).
2) When all the cards come in, take out as much as you can in Balance Transfers from the 0% cards.
3) Take this money and put it in a 5% or 6% savings account for 11 months, then pay the cards back and keep the interest.
Obviously there are a lot more details, and while not illegal, this is certainly not encouraged by the CC companies, so you have to pay close attention to minimum monthly payments and other letter-of-the-law stuff. But if you're willing to put up with all the hassle and CSR-wrangling, and you're willing to have your credit score go down the crapper for a few months (it eventually comes back), you can actually make pretty good money -- $50K at 5.5% is nothing to sneeze at, interest-wise.
But, to me it seems like too much hassle, and I absolutely HATE haggling, which is a lot of what this is (calling the cards and asking for higher limits, to waive the BT fees, etc.). Also, as a stay-at-home dad with a personal income of <10K/yr, I suspect I wouldn't get enough credit to make it worth my while.
If anyone else wants to try it, though, let me know how it goes! There is no shortage of websites to tell you how to do it.