Friday, November 7, 2008

Idea for making a quick buck! (using the Manhattan Platinum Card)


The Standard Charted Manhattan Platinum offers quite a lot of perks such as

  1. Credit limit of up to 4X monthly salary
  2. 0% interest free purchase for up to 24mth from participating merchants
  3. Interest rate that can drop down to 12% a year compared to 24% of others
  4. Cash rebates that varies according to how much you use a month. Up to 5% for $3000 spending a month, ( capped at $300 a quarter)
We shall make use of the last perk to our advantage.

Basic idea:
We are to buy and sell something and pocket the 5%. And this 'thing' has to be very liquid and will depreciate very little in that short span.

One possible plan ( using the stock market) :
  1. Buy 6 lot of share at $1 each (which is the selling price) each=> pay $6000
  2. Immediately sell it into the buying price, which is lower, say $0.99. Hence you get back $5940.
  3. Including transaction charges ( around $70) and loss due to step 1 and 2, you would have lost $70 + ( $6000-$5940) = $130
  4. However due to the rebate of 5% of $6000, you get back $300.
  5. Hence total profit is $300-$130= $170
The problem that I foresee is whether your stock broker is willing to take the immediate payment of the stock after step one using your credit card, not sure about it.

Any comments/ideas ..feel free to email me at ntuchartist@hotmail.com

4 comments:

harry said...

thanks for sharing. however, how would the broking house accept your payment through credit card?

you need to pay with this card in order to enjoy the rebate, right?

ntuchartist said...

Yup, you would have to pay with the credit card for the initial buying of the stocks ( though i am not sure whether it is allowed). And hopefully the transaction do not 'contra' by it self( maybe you will need to talk to your broker)

But if this does not work, then we would have to try something else..any ideas of 'products' that is very liquid and does not depreciate too much in such a short time frame?

harry said...

honestly, i doubt you can personally go to the brokerage and offer to pay the contra difference with credit card as they should not be accepting this form of payment.

i can only think of helping others to pay for air tickets and get the rebates.

ntuchartist said...

Hmmm.. so most probably the stock method will not work. Airline tickets sounds good provided you have friends who travel often.. but yah..thanks for the suggestion!