Not usually my style to write response writeups. But in something that could be taken as financial advice, it's important to be thorough!
mrichich says "The only flaw with the endless rotating credit card balance method, is that usually, they consider balance transfers as a cash advance. Cash advance fees are usually 2% of the transaction amount. So now you've gone from paying about 18% APR a year, to 2% compounded monthly, which is quite a bit higher."
In most cases, the advantage of taking these offers on credit cards is that the balance transfer is interest free for about six months.
gm_food says the following three things.
- Firstly, one needs to make sure you have enough credit cards. This can be achieved by applying for any credit card that a company offers you.
- Secondly, it's advisable to start with a good credit rating. This will help convince the companies that they want to give you a card, and also lots of credit.
- Keep repeating this process and you will find that you have an excellent credit rating, being a prompt payer, and therefore the companies are falling over themselves to give you more credit.
This is where the whole argument falls part. Not that many things hit your credit rating as badly as you'd think. But one of the worst things is... applying for lots and lots of credit, because it gives the impression that you need it.
Therefore, to take gm_food's first point, "This can be achieved by applying for any credit card that a company offers you", this is the best way to hit your credit rating in the first place. You will quickly end up being denied credit (and possibly credit related service such as paying your phone and utility bills in arrears rather than in advance). So the whole scheme falls apart.
NB: I'm not a financial advisor, and what I say here shouldn't be taken as formal legal or financial advice. Just remember. Things that seem too good to be true, usually are.