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Old 07-08-2012, 05:02 AM
 
Location: S.W.PA
1,361 posts, read 2,651,492 times
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Anyone ever heard of saving money via credit card- that is, via a positive balance? Can that even be done? If so what would be the motive for using this device?
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Old 07-08-2012, 05:09 AM
 
85,846 posts, read 83,330,607 times
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if your doing it on a credit card its going to end up going for bills more than not so i wouldnt call it a savings unless it was really excessive.

while you can call money even buried in your yard thats awaiting being spent a savings it all depends on whether its a true savings account or just money that just hasnt been sent out for bills yet.

i have my real estate taxes due in an account ready for payment but i dont call it savings
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Old 07-08-2012, 05:12 AM
 
Location: S.W.PA
1,361 posts, read 2,651,492 times
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Quote:
Originally Posted by mathjak107 View Post
if your doing it on a credit card its going to end up going for bills more than not so i wouldnt call it a savings unless it was really excessive.

while you can call money even buried in your yard thats awaiting being spent a savings it all depends on whether its a true savings account or just money that just hasnt been sent out for bills yet.

i have my real estate taxes due in an account ready for payment but i dont call it savings
But its possible to "stash" money this way? Lets assume no bills on this card.
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Old 07-08-2012, 05:44 AM
 
Location: Keosauqua, Iowa
9,270 posts, read 18,258,787 times
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Not generally. They usually won't carry a credit balance of any size for very long before they send a refund check. Plus, they won't accept payments if you already have a credit balance so the only way to build it up is to return stuff that you have purchased on the card.

My question is, why in God's name would you even want to do this? They won't pay any interest, and the money isn't very accessible; as has been mentioned, you would only be able to use the money conveniently for purchasing things where they accept the card, and if you do need cash you'll have to pay an ATM fee plus a cash advance fee.
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Old 07-08-2012, 05:48 AM
 
85,846 posts, read 83,330,607 times
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im not sure what happens to a credit card balance credit if your card provider goes under.

there is no fdic here
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Old 07-08-2012, 08:02 AM
 
Location: The Triad (NC)
31,380 posts, read 69,812,226 times
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Quote:
Originally Posted by stevo6 View Post
But its possible to "stash" money this way? Lets assume no bills on this card.
In another thread I made this suggestion as a way to "stash" the cash that your budgeting
should have you set aside each month until it's needed for those known categories of expense
but of unknown specific amounts.

Rather than opening an additional (and no to low interest) savings accounts and constantly
shifting money back and forth to pay off a CC... just put it there to begin with.

The example given was the vague automobile maintenance & repair budget.
As you put $X aside each month you'll accumulate a nice pool of cash.
When you find yourself in the tire or brake shop (as you know you will)...
you then lay down the plastic and start over.

The key is NOT spending it on other things and of course to not go negative.
But no... it's not intended as a substitute for your OTHER savings that should be heading for investments.

Last edited by MrRational; 07-08-2012 at 08:16 AM..
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Old 07-08-2012, 08:08 AM
 
1,844 posts, read 2,710,300 times
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Quote:
Originally Posted by stevo6 View Post
Anyone ever heard of saving money via credit card- that is, via a positive balance? Can that even be done? If so what would be the motive for using this device?
Why not just put the money in the bank and pay the card off each month as needed? What is the. Enefit of stashing the money on the CC? Maybe there is something I am not understanding.
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Old 07-08-2012, 09:11 AM
 
Location: Denver
4,564 posts, read 10,165,850 times
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Is "shifting money back and forth" really such a problematic task? Either you shift it to a credit card for your so called "stash" or you keep it in a savings account and shift it when you need to. Is the extra step of shifting to savings and then a credit card that's the issue?

Takes two seconds to do all the shifting online.
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Old 07-08-2012, 09:16 AM
 
Location: MMU->ABE->ATL->ASH
9,230 posts, read 18,547,457 times
Reputation: 10201
One of my credit cards had a positive balance for 3 month, ( I only use the card for online ) and I returned something and got a credit, but had not re-charged anything on it in 3 months. The credit card company send me a check for the positive balance (I Did not request the check). Was about ~$30 postive credit.
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Old 07-08-2012, 09:18 AM
 
Location: Sierra Vista, AZ
16,537 posts, read 22,012,752 times
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I saww that episode of Laaw aand Order too. It doesn't work, if you have a positive balance of over $300 most Credit Cards will send you a check for that balance after a month or two. Target just sent me a check for about $60 for a credit balance that sat there for three months.
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