Comments on: Debt – beyond good and evil http://www.financialreference.com/blog/2006/01/28/blog/ Musings of a Financial Hobbyist Tue, 06 Jan 2009 03:15:30 +0000 http://wordpress.org/?v=1.5.2 Comment on Debt – beyond good and evil by: Brian http://www.financialreference.com/blog/2006/01/28/blog/#comment-211 Sun, 05 Feb 2006 16:20:32 +0000 http://www.financialreference.com/blog/2006/01/28/blog/#comment-211 You have a good point that I didn't address. You will lower your credit score if you use this strategy. However, your credit score will not be effected that much if you only use this strategy with a portion of your total available credit. (One yardstick the rating agencies use is how much of your potential line of credit you have outstanding.) For example, I used this strategy before I purchased a home with my girlfriend (now wife) and she did not. When we checked our credit scores before the transaction her credit score was 720 and mine was 715. With this score I am still bombarded with credit offers and would have no trouble using available credit should the need arise. Thanks for your comments addressing a potential problem with the strategy. You have a good point that I didn’t address. You will lower your credit score if you use this strategy. However, your credit score will not be effected that much if you only use this strategy with a portion of your total available credit. (One yardstick the rating agencies use is how much of your potential line of credit you have outstanding.)

For example, I used this strategy before I purchased a home with my girlfriend (now wife) and she did not. When we checked our credit scores before the transaction her credit score was 720 and mine was 715. With this score I am still bombarded with credit offers and would have no trouble using available credit should the need arise.

Thanks for your comments addressing a potential problem with the strategy.

]]> Comment on Debt – beyond good and evil by: Nathan Whitehead http://www.financialreference.com/blog/2006/01/28/blog/#comment-209 Sun, 05 Feb 2006 07:59:42 +0000 http://www.financialreference.com/blog/2006/01/28/blog/#comment-209 I thought about it and concluded that it's not a good idea to use 0% offer money to invest. (<a href="http://www.finance.paranoidbrain.com/blog/2006/01/31/should-you-use-0-balance-transfers-to-make-money/" rel="nofollow">blog entry</a>). Am I wrong? My main argument is that you'll lower your credit score, which lowers your available money in financial emergencies. I thought about it and concluded that it’s not a good idea to use 0% offer money to invest. (blog entry).

Am I wrong? My main argument is that you’ll lower your credit score, which lowers your available money in financial emergencies.

]]>