Credit Card App O Rama

Credit Card App O Rama is a growing game as more and more people take advantage of 0% interest offers and stash the money in high yield checking accounts - earning free money.

The concept is simple.  Take advantage of the free 0% cash advance or balance transfer offers, get a pile of money, and invest it in high yield savings accounts.  The result is a decent return, almost entirely risk free on borrowed money.  A small, but growing group of people have been doing this and App O Rama (often referred to as AOR)  is the phrase that has been coined to describe it.  There is even a site that helps you do it - App O Rama

How It Works

Apply to as many credits card as possible at the same time.  The credit cards should have generous 0% cash advance offers, ideally with no transfer or cash advance fees.  Applying simultaneously will prevent the banks from seeing the other apps and maximize your chances of being approved for more offers.  Once you receive your offers, take the cash and invest it in the highest yielding FDIC insured savings account you can find.  BestCashCow has a good list of them. 

Then, each month, pay the minimum balance on the credit card while the 0% introductory offer is still good.  The difference between the interest you pay and the interest you earn if your profit.

How much can you make?  Thousands.  For example, if you could borrow $50,000 at 0% and invest it in IndyMac at 3.85% APY, you could make approximately $1,900.  That's $1,900 you've made with other people's money and it's the same techniques the hedge funds and investment banks make to earn huge returns.  Making money with other people's money is called leverage.

Things to Consider

Before you rush out and start applying, be aware of several drawbacks to App O Rama.

  1. For each credit card application you make, there will be a pull on the credit bureaus.  This will lower your credit score temporarily until the loans are paid off.  If you plan on borrowing money for a mortgage, card loan, etc in the near future it may not be a good idea.
  2. If you miss a monthly payment, rates on your card will spike, potentially wiping out all of your gains.
  3. You should be organized and methodical or you will most likely earn nothing for a bit of work.

But, if you are organized and are willing to put in a bit of work, you can earn a nice vacation, new regrigerator, etc. on the banks with App O Rama.

Editorial Disclosure: Opinions expressed here are those of the author, and have not been reviewed, approved or otherwise endorsed by any bank advertiser, card issuer, airline or hotel.

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Credit Cards and Students

You know, that almost every credit card issuer offers plastics for students. What are student credit cards? What are terms and conditions of applying for these? Read this article to know more!

Those student years... happy and joyous, independent and somewhat carefree time. Nevertheless, teens face their first difficulties after all. It is not only about their forming psychology, first love, communicating with people on a more serious level, but also learning how to manage their finances.

Quite often parents pay for their kids' college, and sometimes they also provide their children with pocket money. However, basically kids, when entering a college, are not kids anymore, i.e. they are regarded as adults. Consequently, they have to cope with all problems (including financial) on their own.

You might think that students, with nothing to care about, spend money on various entertainments, e.g. parties, expensive and fashionable clothes, CDs, DVDs, cinemas, and so on. However, most of them reasonably buy those things which help to study – books or programs, for instance, or visit various elective courses. Actually, students do their best to become independent, especially in finances, with the help of any part-time job, for example. Nevertheless, there is no doubt: this money is not enough to compensate for all of those expenses.
One of the methods is to obtain a credit card. Nowadays very many credit card issuers offer various deals especially for students, so choosing the best is not a great difficulty. Even if your credit score is too low (or you have no credit at all), you are free to choose and apply online.

Certainly, the limit on such a plastic is not that high, so you will not be able to cover, for instance, the total cost of your education. Nevertheless, owning a student credit card you will not have to ask your parents to give you pocket money anymore.

So, as soon as you are 18, you are eligible to apply for a student credit card. Such plastics help to manage personal finances reasonably and give the necessary convenience (take into consideration this furious speed of life when studying or working!).

In practice, however, this wise managing often loses its essence. So the judicious costs turn into senseless waste of precious savings. Of course, students are not young teens, so very often they face the lack of experience when dealing with numerous credit card offers, many of which seem to be incredibly attractive. That is why their parents' attention and control is required.

So, what are these student credit cards, really? First of all, it is quite easy to obtain one, since so many issuers offer them, such banks as Citi, Chase or Capital One. Your credit score may be low (or no credit score at all), still you are free to apply for one. The APR of these plastics is usually 10-20%. The credit limit of these plastics is $500-1000. Student cards often have some favorable terms, such as 0% introductory APR or no annual fee. Moreover, these may be cash rebates or point rewards cards.

So apply online for a student credit card and let it be your first step towards your financial independence!

Editorial Disclosure: Opinions expressed here are those of the author, and have not been reviewed, approved or otherwise endorsed by any bank advertiser, card issuer, airline or hotel.

Advertising Disclosure: This site may be compensated for hosting offers.


Credit and Debit Cards: Choosing Dilemma

Whenever you wish to get the card you have to make a selection. Debit and credit cards strongly vary and have almost only external similarity. Read about pro et contra of both types in order to select the right one.

As soon as you decide to get the card you face some questions – what card finally to select? They arise because between both types we have more differences rather than commonness.

In fact on the surface cards are very similar. Cards are made of plastic, have some magnet or chip protection, shining bank logos and share the very size.

And probably that is all about their commonness. The first essential distinction lies in the logic of payments. The core sense of credit payment means, that in order to cover spending, money is "taken" from the future. Thus your credit is extended every time when you make "a purchase". And all your debt events are listed – so you need to make periodical payments for account prolongation. Paying system of debit type is merely another. Your bank will just transfer money from your account wherever you wish.    
The fraud protection is really significant matter. Credit cardholder can receive return with no more than 50$ of any stolen sum – and only if he or she doesn’t forget to report the fact quickly. The best cardholders may be given a possibility to decrease the rate on this sum. Bad cardholders may receive no more than 50$.
As for debit cards – you can also receive 50$ of fraud protection – especially if you report the event during first 2 days. Moreover, you can be responsible for even some hundreds of dollars.    

As for payments duration <a href="http://www.yourcreditoptions.com/Bad-Credit-No-Credit-Card-Offers-870386-page.php" target="_blank">credit cards</a> give you a chance to postpone payments, moving them closer to the end of paying period. But keep in mind that one hand gives while the second takes away – so the bank may suppress you with new higher interest rate. Оn the contrary, debit cards are the control tools of "real" money which is located at your account. This means that making payments has nothing common with extending debt. You just spend it – and without any credit urgency.     
Take into consideration one important similarity of all credit cards: due to Fair Credit Billing Act all the credit cardholders – especially the U.S. citizens - have the right to restrain payments in case of poor quality of sold goods. This is called the "buffer zone" – it exists between your account and merchant’s hands. So – you can even get the recourse. As for debit card purchases money leaves your account immediately.
So, which card should be chosen is the matter of serious thinking – and in this article I tried to help you. What you certainly have to conceive is the fact that any card – being managed dowdily – may bring you difficulties with fraud. And this is the pure truth; any kind of cards can one day show their hidden limitations.
In this case I guess that better variant for you is to apply for a debit card in order to easily buy. Else – if you prefer the idea of delayed payment – then you need the credit one. Just listen to yourself.

Editorial Disclosure: Opinions expressed here are those of the author, and have not been reviewed, approved or otherwise endorsed by any bank advertiser, card issuer, airline or hotel.

Advertising Disclosure: This site may be compensated for hosting offers.