A True 0% Interest Free Loan (kinda')

So while out and about on the Nethernet, I stumbled upon chargesmart.com while attempting to unearth the possibility of paying mortgage and car payments with a reward credit card.

Although I have managed to rack up hefty reward points over the years, I actually never got around to using them myself. They were usually spent on gifts for friends and family. And in some cases, transferred to accounts of friends and colleagues. However, I vowed to change this course and actually use the to-be-racked-up points for mundane activities such as vacations for my dear self. I also vowed that I must use the damn points in this great year of 2011 (did you know adding your birth day and year equals 2011?).

My searches quite easily landed my mouse cursor on chargesmart.com. A company that allows you to indeed pay mortgage and car payments with a Mastercard, Visa or Discover. Of course, there is a catch:

They will charge you a fee+2.xx % for the privilege of earning rewards and potentially getting into debt. If you are however a disciplined card user, this might actually work for you in a number of ways:

1) Provided you have a good reward card, you can stack up points quite easily. If you are only minimally privileged to be using a 1x Thank You card, you will have earned 36,000 points in a year assuming your mortgage is $3000.00/month.

2) Interest free loan from no other than yourself. Take that $3000.00 which you would otherwise pay your mortgage with and put it into a bank account or rather, buy yourself a shiny new toy (the new macbook pros?).  Pay your mortgage with your credit card and earn some reward points. On the following month, use your $3000.00 mortgage that you nicely again saved and use it to pay your credit card. Charge the mortgage payment again on the credit card. Rinse and repeat. That stack of greens you safely stashed away in your credit union can stay there until your mortgage is finito. If you bought a Macbook Pro with it instead then God speed to you.

3) Float. Use the funds as a short term loan to yourself for up to 50 days!

There may be other avenues to utilize such options beyond chargesmart.com. I recall Bank Of America's Bill Pay having such facility although no reward points were given.

And don't forget, chargesmart.com's perhaps hefty fees. Also, use the strategy at your own risk. There may be other avenues to obtain an interest free loan. Legitimate options include borrowing money, savings, etc.