"Money Laundering" How to?

[SoulAssassin]

Do not do this. I've been playing the credit card arbitrage/AOR game for several years and this is a bad move. While you may be able to earn 10% you could also lose 10% + 6% interest. Investing OPM (other people's money) in non-fixed rate returns is asking for trouble. FNBODirect is offering 6% until the end of September...you would be much better off getting a 0% offer on a new card and investing it there.

Start reading here:
http://www.fatwallet.com/forums/messageview.php?catid=52&threadid=477214

 

[allisolm]

Originally posted by: A1CSpence
So here's the deal. I'm trying to start a Roth IRA with Vanguard. I've got a credit card with a $3,000 limit and $0 balance which has its interest rate locked at 6% (thank you soldier's and sailor's civil relief act). I called them to request "convenience checks" to pay Vanguard to start my account. They denied my request and said they don't just give convenience checks away by request. So what I would like to do is find some intermediary, perhaps another bank, which will accept a deposit via credit card. Then I can transfer the money to Vanguard and start my IRA. Anybody have any ideas?

I thought the relief act 6% limit dealt only with pre-service debts.

 

[JeffreyLebowski]

How about save money. You say you would pay back the $3000 quickly. Don't use the credit cards, and put the money you would use to pay off that $3000 into an interest baring account until you have enough to start your Roth. You make some money in interest on your deposits too. It's not much but it's better than paying 6% for nothing.

 

[SoulAssassin]

Assuming for one second you did this and did get a return of 10%, on a $3K balance you're looking at a profit of no more than $120 over 1 year. Also consider the possibility of missing a payment and late fees eating into that as well as transfer fees. Frankly, you're an idiot if you do this.

 

[geecee]

Not that you'd want to do it for the many reasons pointed out here, but if you still want to do it, couldn't you buy travelers checks with a credit card and then just cash out of them later? I'm not 100% sure about that, just an idea.

 

[boomerang]

Originally posted by: A1CSpence
I planned on paying off the $3000 balance as soon as I could...

I have Nigerian friend who can help you with this. I will put him in contact with you.

 

[EagleKeeper]

Originally posted by: A1CSpence
So here's the deal. I'm trying to start a Roth IRA with Vanguard. I've got a credit card with a $3,000 limit and $0 balance which has its interest rate locked at 6% (thank you soldier's and sailor's civil relief act). I called them to request "convenience checks" to pay Vanguard to start my account. They denied my request and said they don't just give convenience checks away by request. So what I would like to do is find some intermediary, perhaps another bank, which will accept a deposit via credit card. Then I can transfer the money to Vanguard and start my IRA. Anybody have any ideas?

As Allison stated, the rate is locked for debt incurred prior to active duty.

It does not cover debts added while on active duty.

 

[A1CSpence]

You're right, but for some reason Capitalone has the rate locked at 6% on all future transactions, including both purchases and cash advances. Thanks for all the replies.

 

[GasX]

Originally posted by: A1CSpence
My cash advance interest rate is the same as my purchase interest rate. That's probably why they don't want to send me the checks. They'd be giving me a $3,000 loan @ 6% interest. I thought about paypal but that would eat into 6% of my money, too high of a price to pay.

go to the issuing bank with your credit card and take out a cash advance on the card.

 

[Looney]

Originally posted by: pulse8
Any deposit you take out of your card would be a cash advance and the interest rate would be higher.

Also, this isn't money laundering.

That's right, on both accounts.

But it IS money laundering what he wants to do... so the best thing is, if you know somebody who owns a store with a CC machine, get them to run up some charges for you and give you the money. Or go buy things and resell them for their value (or more if you can!). If you have no luck in reselling the things, just return it back to the store before their refund policy expires.

 

[allisolm]

Originally posted by: A1CSpence
You're right, but for some reason Capitalone has the rate locked at 6% on all future transactions, including both purchases and cash advances. Thanks for all the replies.

Ah, well, then. Carry on. Just didn't want you to believe you could get 6% because of the relief act. If your card company does it for their own reasons, good for them and beneficial to you.

 

[manlymatt83]

Originally posted by: A1CSpence
So here's the deal. I'm trying to start a Roth IRA with Vanguard. I've got a credit card with a $3,000 limit and $0 balance which has its interest rate locked at 6% (thank you soldier's and sailor's civil relief act). I called them to request "convenience checks" to pay Vanguard to start my account. They denied my request and said they don't just give convenience checks away by request. So what I would like to do is find some intermediary, perhaps another bank, which will accept a deposit via credit card. Then I can transfer the money to Vanguard and start my IRA. Anybody have any ideas?

Find a friend with a bank of america credit card who will help you.

 

[manlymatt83]

Originally posted by: A1CSpence
My cash advance interest rate is the same as my purchase interest rate. That's probably why they don't want to send me the checks. They'd be giving me a $3,000 loan @ 6% interest. I thought about paypal but that would eat into 6% of my money, too high of a price to pay.

6%?

isn't it 2.9% plus 35 cents?

 

[A1CSpence]

Google checkout is the way to go. I made an account and then sent an invoice to myself. Once the payment is processed it will be deposited into my bank account. Sweet!

 

[ViviTheMage]

Originally posted by: A1CSpence
My cash advance interest rate is the same as my purchase interest rate. That's probably why they don't want to send me the checks. They'd be giving me a $3,000 loan @ 6% interest. I thought about paypal but that would eat into 6% of my money, too high of a price to pay.

thats not uncommon...I have a 8000$ loan @ 7% interest rate from USBanks...there premiere line loan, might want to look into that? You have to have a decent credit score, or that rate wont be as juicy

 

[intogamer]

Originally posted by: mjuszczak

Originally posted by: A1CSpence
My cash advance interest rate is the same as my purchase interest rate. That's probably why they don't want to send me the checks. They'd be giving me a $3,000 loan @ 6% interest. I thought about paypal but that would eat into 6% of my money, too high of a price to pay.

6%?

isn't it 2.9% plus 35 cents?

6% is from the Credit Card

2.9% + .30 is Paypal fee

 

[Eli]

That isn't money laundering, LOL.

 

[Firebot]

Originally posted by: A1CSpence
Google checkout is the way to go. I made an account and then sent an invoice to myself. Once the payment is processed it will be deposited into my bank account. Sweet!

Wouldn't that be considered fraud?

 

[dullard]

Originally posted by: A1CSpence
Google checkout is the way to go. I made an account and then sent an invoice to myself. Once the payment is processed it will be deposited into my bank account. Sweet!

Now the bigger question: what funds are you investing in?

 

[Elbryn]

Originally posted by: dullard

Originally posted by: A1CSpence
Google checkout is the way to go. I made an account and then sent an invoice to myself. Once the payment is processed it will be deposited into my bank account. Sweet!

Now the bigger question: what funds are you investing in?

hopefully he's opening the ira at a vanguard, t rowe price or fidelity and is going to put it into a target retirement fund or total stock market index fund.

 

[boomerang]

Originally posted by: dullard

Originally posted by: A1CSpence
Google checkout is the way to go. I made an account and then sent an invoice to myself. Once the payment is processed it will be deposited into my bank account. Sweet!

Now the bigger question: what funds are you investing in?

Umm.....duh, ones that are going to go up, and quick! Why else for all the rush?
Hope the OP knows the rules on withdrawals on Roth IRA's.

 

[FoBoT]

this isn't really a good idea

just buy some pizza and beer and watch TV instead

 

[mb]

Perhaps you should consult your dictionary.