The effect on credit score is inevitable but keep in mind business credit cards are not reported to credit agencies. That is why my BT from personal cards are small. I will hit big with business credit cards, also you can transfer Credit Lines between them Lastly, I found FDIC checking accounts paying 6% but limit is $25K. I need 10 accounts like this to invest fully. Check out www.redneckbank.com Please make sure your investments suggestions are covered by FDIC.
I think you're doing this for ego reasons, not any real logical financial reasons. You feel like you're smarter than most because you are getting "free" interest. Your upside is small & capped while your downside is large. You're forgetting that the savings/MMA rate is variable and on a downtrend. Locking the money into a CD presents another risk. Only real reason to do this would be to turn credit into cash, how you have, in order to have it ready for a real opportunity. And if you ever get to $1MM available credit, which I highly doubt will ever be available again, it would be stupid to put that to work for a few % points.
I never used CDs My money is in savings account, for some reason savings account pays more than CDs in some banks. That means I can cash anytime any reason any minute with no questions asked. Anyway, I am not doing this for my ego, but I am not surprised to see you saying that. Typical trader mentality which is not bad but I am not into that. All I am doing is making a few bucks without doing anything and with ZERO risk. That is all. Now for the $1MM, yeah I doubt I can get that either But the more the better. And once interest rates start rising again, then gains wil be larger. Now here is my 2 cents. I tried to buy AAA bonds expiring in 11-12 months, like GE's bonds. But their YTM was around 1%. Walmart less than 1%, and so on. So I was not able to get that. It is amazing in this environment companies with good corporations can borrow money unbelievable cheap.
And don't worry about those little details such as 10 visa transactions per cycle. If they were important the would be in bold.
I have been here before. I made money too, but with the way the credit card companies can change the rules it is not worth the risk. Let's say 1 card company decides to change the rules and lower your balance. You are then 'over-limit' on that card, up to 29%. Other card companies pull your credit score, and they raise the rate too, now that you are a 'risk'. If you must do this plan, keep the money in a high yield savings account that you can liquidate within 2 or 3 days... CC companies can change the rules at any time. That is the part you don't realize.